George Osborne urged to fulfill promise to invest in transport in the North

Chancellor expected to back northern transport improvements, including taking forward the HS3 high-speed rail line

George Osborne visiting the Crossrail station construction site at Tottenham Court Road, in central London, on Tuesday (Getty Images)

George Osborne has been warned he must make good his promise to invest in transport in the North as critics claim London is receiving far greater investment than his cherished Northern Powerhouse.

In a £300m Budget package, the Chancellor is expected to confirm Government backing for northern transport improvements, including taking forward the HS3 high-speed rail line.

But critics say the money is a drop in the ocean compared with the £27bn-£32bn expected to be spent on Crossrail 2, a project to connect Surrey and Hertfordshire via stations in central London that Mr Osborne was also set to confirm on 16 March. Liberal Democrat leader Tim Farron, whose constituency is in Cumbria, said: “This is fantasy infrastructure that will not unlock our economic potential.

“It only lives in a Government spreadsheet or the chatter of a Whitehall committee. It is a sham. We need this infrastructure now and not in 10 years’ time but because of the Chancellor’s choice to hold back borrowing he is stopping the creation of jobs and building the infrastructure we need.” The decision to back HS3 came as the National Infrastructure Commission, set up by the Government in 2015 to advise on long-term projects to boost the economy, released a report calling for “immediate and very significant investment” in transport for the North.

But Joe Anderson, the Mayor of Liverpool, said: “The name of this commission should be the Southern Infrastructure Commission. The announcement today once again clearly shows a lack of desire to rebalance the economy of the UK at the speed that is required.”

Think-tank IPPR North released a report in September claiming just £397 is being spent per person on transport infrastructure in the North-west in real terms compared with £2,604 in the South.

Mr Osborne said during a visit to a Crossrail construction site in central London: “An absolutely crucial part of improving the economy is making sure we invest in our Northern Powerhouse.”