Manchester United has secured significant backing for its plans to redevelop Old Trafford, with UK Chancellor of the Exchequer Rachel Reeves expressing her support for the ambitious project.

Will the government help fund the redevelopment?

Reeves praised the club’s ambition to create a community hub around the stadium, calling it an excellent example of a bold pro-growth model that could drive economic development across the region. This statement suggests that the government may be open to providing some form of financial support.

Manchester United consider the construction of a new 100,000-seat stadium. However, to support the development of the surrounding areas, the establishment of a development corporation has been proposed. The club believes that a redeveloped Trafford Park could generate an additional £7.3 billion for the local economy and create 90,000 new jobs.

A shift in investment approach announced

In a Sunday statement on the government’s official website, the Treasury announced bold reforms to the national spatial planning system. The statement read: The Chancellor also revealed today that she is championing a regeneration project around Old Trafford in Manchester that will see new housing, commercial and public space as a shining example of the bold pro-development model that will drive growth across the region, with authorities exploring setting up a mayoral development corporation body to redevelop the area.

Later, Rachel Reeves added on platform X: When it comes to planning and infrastructure, for too long the answer has been ‘no’. We’re doing things differently. By removing the blockers that chokehold growth, we’ll get Britain building and our economy growing for working people.

Everyone awaits the club’s final decision

Manchester United’s task force on redevelopment has long been analyzing options for Old Trafford, considering both the construction of a new stadium and the modernization of the existing one. Two weeks ago, the club published a report outlining the available options. A final decision on the direction the club will take is expected at the end of the season. If the existing stadium is modernized, its capacity would increase to 87,000 seats.

However, the construction of a new stadium on nearby land, already owned by Manchester United, remains the preferred option for Sir Jim Ratcliffe. Such an investment would cost at least £2 billion, and the question of how it would be funded remains critical. Nevertheless, positive signals from the government regarding support for the broader regeneration project are promising from the club’s perspective.

© Felipe Gálvez | If modernized, Old Trafford’s capacity would increase to 87,000 seats.

A chance for the entire area?

Keir Starmer’s Labour government aims to reform spatial planning laws, potentially making it easier to carry out large-scale projects. Development corporations are seen as an effective way to fund major initiatives, though it is still unclear how much public money would be needed for the Old Trafford area’s redevelopment.

Greater Manchester Mayor Andy Burnham, a member of United’s task force, said: These proposals offer the biggest opportunity for urban regeneration this country has seen since London 2012 and are an important part of our 10-year plan to turbocharge growth not only around Old Trafford but across Greater Manchester.