Leicester City Council has been given the go-ahead to allocate almost £10 million of Government funding to help ensure that a radical revamp of Leicester’s historic railway station goes ahead.

The railway station scheme is a high priority for the Department for Transport, and it has agreed to transfer £9.95 million of the £12.15 million of Levelling Up funding originally awarded to the St Margaret’s junction scheme.

Under the new funding agreement, the railway station project will now receive financial backing totalling £27.5 million from the Levelling Up Fund, and key improvements to the St Margaret’s junction, one of the city’s busiest, will still go ahead.

The Government’s Levelling Up Fund is a £4.8 billion capital investment programme designed to regenerate town and city centres, upgrade local transport, and support infrastructure projects that improve everyday life across the UK.

The major revamp of Leicester’s railway station aims to transform the landmark building with improved facilities, increased passenger capacity, and a new public plaza to create a more accessible and attractive gateway into the city.

The scheme is led by Leicester City Council in partnership with Network Rail and East Midlands Railway (EMR).

It is hoped that the funding boost will help kickstart the project after a previous tendering exercise did not result in a development partner being appointed to deliver the scheme.

The Department for Transport and EMR are also considering the city council’s proposal that they make an additional £5 million investment available to further enhance the development opportunity and the passenger experience.

The city council’s previously confirmed contribution of £5 million will remain unchanged.

City Mayor Peter Soulsby said: “The railway station is a landmark building and a gateway to the city but as a vital transport hub, it’s just not fit for the 21st century.

“It urgently needs investment and a radical revamp so it can continue to meet the needs of our growing city.

“This new funding agreement with the Government is a tremendous endorsement of the importance of this project. There is a real determination to make this happen.

“With a new budget agreed, we can now move forward with confidence and deliver the bold and ambitious transformation of our historic railway station that is so badly needed.”

Under the plans, the station’s main entrance will be moved from London Road to Station Street, which will be closed to traffic and replaced with a new pedestrianised public plaza.

The original façade of the historic Grade-II listed building will be carefully restored to its Victorian glory and form the new entrance, facing directly towards Granby Street and into the city centre.

The existing glass-roofed entrance hall – or porte-cochere – will be completely overhauled to provide an attractive and welcoming place for cafes, bars or retail.

Pick up and drop off points, including for hackney cabs. will be relocated from inside the station to a new location at the rear of the station, off Fox Street and close to the new entrance.

A new curved ramp, steps and lift will provide easy access to the new entrance and main concourse ticket hall, which will be completely remodelled to provide more space for passengers.

Philippa Cresswell, Customer Experience Director at EMR, said: “We’re pleased to be working alongside Leicester City Council and Network Rail to improve the facilities for our customers.

“The investment will see Leicester railway station restored back to its Victorian glory, while enhancing its role as the gateway to the city. The development will improve the station environment, strengthen connections with the local community and provide a better experience for customers and visitors.”

Gavin Crook, Principal Programme Sponsor for Network Rail’s East Midlands route, said: “We are delighted to be working with Leicester City Council and East Midlands Railway on improvements to Leicester railway station.

“These enhancements will create a more welcoming and accessible environment for passengers and strengthen the station’s role as an important gateway to the city. Once complete, the improvements will help provide a smoother and more enjoyable journey experience for everyone using the station.”

The council plans to appoint a main development partner early in the new year, following a tender exercise due to be launched this summer.

A separate contract to deliver the restoration of the historic railway station façade has already been advertised. It is hoped that work on this element could begin later this year.

Although funding has been reallocated from the proposed St Margaret’s junction scheme, an ambitious £5.2 million scheme will still go ahead at the busy Inner Ring Road junction. This will continue to be supported by £2.2million from the Levelling Up Fund.

More than £12 million of Levelling Up funding was initially awarded to the St Margaret’s junction scheme in November 2023. This followed an unsuccessful speculative bid made in July 2022.

Under the new scheme the main priorities have been retained. The existing subway tunnels, which have been closed since early 2023, will be permanently removed and filled in. This will allow green space next to St Margaret’s Church to be extended and improved, creating a new, small park.

The junction itself will be improved to assist bus movements and reduce congestion experienced around St Margaret’s Bus Station, along with new pedestrian crossings and safer routes for cyclists.

The revised scheme will now require minimal changes to layout of the junction, resulting in a project budget that it is significantly lower than the original indicative bid.

Final designs will be developed over the coming months.

A formal executive decision on the reallocation of funding is due to be taken on Wednesday 22 July 2026.