The UK Government announced on Saturday that it is in full support of the Old Trafford regeneration project, which includes the development of a world-class stadium in the area.
That stadium in question will either be a renovated version of Manchester United's current home, Old Trafford, or a brand-new stadium built on the same site. While both options are still on the table, the public display of support from the government means that the overall project of regenerating the area around Old Trafford is one step closer to becoming a reality.
According to experts, the plans for the area, which include new housing and new commercial and public spaces, would bring in more than £7bn each year for the UK economy and create around 90,000 new jobs.
A statement from the UK treasury on 25 January stated:
“The Chancellor (Rachel Reeves) 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.”
/https%3A%2F%2Ffootballgroundguide.com%2Fapp%2Fuploads%2F2025%2F01%2FOld-Trafford-regeneration-project.jpg "UK Government backs Old Trafford regeneration project 1")
Will the government pay for the Old Trafford regeneration project?
When Sir Jim Ratcliffe first started talking about creating a new stadium for Manchester United, he wasn't shy about the fact that he believed the government should help fund the project as he saw it as ‘Wembley of the North'.
Ratcliffe's argument was that money from the government's Levelling Up fund could be requested, and when Sir Keir Starmer was seen heading into a meeting with the Man Utd board alongside the Mayor of Greater Manchester, Andy Burnham, many people assumed that Ratcliffe's theory had legs.
However, the club have revealed in light of the support from Rachel Reeves that they will be funding the stadium build/renovation themselves but that the government and other public bodies will need to support them if they are to unlock the wider regeneration opportunities.
Man Utd's CEO, Omar Berrada said:
“We cannot achieve that wider aim on our own, which is why we welcome the announcement by the Chancellor and the ongoing support of the Mayor of Greater Manchester and Trafford Council.
“If we work together, there is a once-in-a-lifetime opportunity to create a landmark project around Old Trafford that the whole region can be proud of.”
ℹ️ The Old Trafford Regeneration Project has been backed by the government.#MUFC
— Manchester United (@ManUtd) January 26, 2025
A new stadium or a renovated Old Trafford?
The question around what route Man Utd will go down in respect to the stadium continues to be asked and the latest information is that the club will make a final decision by summer.
Earlier this month, it was announced that the Old Trafford Regeneration Task Force, headed up by Lord Sebastian Coe, had finished their feasibility work and had concluded that a renovated Old Trafford could have a capacity of 87,000 while a brand new stadium could have a capacity of 100,000.
It is understood that Ratcliffe and other key members of the United hierarchy would like to see a new stadium erected, but how that would go down with lifelong supporters could be a sticking point.