Government's commitment to Northern Powerhouse called into question as ministers accused of backing Crossrail 2 '˜at expense' of rest of UK

The controversial announcement by the Transport Secretary Chris Grayling comes as new research suggests the North of England has lost out on almost £60bn of infrastructure spending over the last decade when compared to the capital.

Opposition parties have accused the Department for Transport of being “blind” to the need to invest outside the capital, and of putting efforts to tackle inequalities between the North and South “at risk”. But the Government claims it remains committed to “driving growth” and spreading wealth “across the country”, including through improvements to Northern rail.

Last week’s announcement that long-running plans to electrify the Midlands mainline up to Sheffield had been scrapped sparked outrage among local leaders. Their anger was only enhanced when Mr Grayling hinted on Friday that parts of the Transpennine electrification project could also be abandoned.

The DfT cited the development of new technology as a key factor in their decision. However, today’s confirmation of support for Crossrail 2 scheme has given rise to claims that the flagship project is being funded at the expense of projects in the rest of the UK.

“It is right that London should receive the transport infrastructure investment it needs, but by pulling the plug on electrification works across the country the Transport Secretary risks undermining public support for Crossrail 2,” said Labour’s shadow transport secretary Andy McDonald. “With more than half of the UK’s total spending on transport networks invested in London, the Government risks further increasing regional inequality if this commitment to Crossrail 2 isn’t accompanied by a commitment to a Crossrail for the North and the electrification of routes across Britain.”

“The government seems blind to the need for greater investment beyond the South East, shown by Theresa May’s clear lack of interest in the Northern Powerhouse,” the Lib Dem leader Vince Cable added. “With fears over our future potentially outside the single market and customs union... we need investment to kickstart growth and produce more jobs in Yorkshire and beyond.”

Leeds council leader Judith Blake described the Crossrail announcement as “deeply concerning”. She called on towns and cities across the North “to make clear exactly how unacceptable it would be” if the Government were to row back on its previous funding commitments to the region.

But the DfT responded by highllighting its support for HS2 and improvements to Transpennine services, which it claims “has the potential to drive economic growth, create jobs and spread wealth across the country”.

The development coincides with new research by the think tank IPPR North, which shows that the North of England would have received £59bn more infrastructure investment over the last decade if it had received the same per person as London.

The organisation has used its findings to make a fresh argument for devolved infrastructure spending power, claiming it would “close the regional productivity gap and help the country to catch up with our competitors overseas”.