Facing an uncertain future

It would allow commuters in the north and south of Leeds to travel into the city centre on a network of modern, electrically-powered buses and help create 4,000 new jobs.

Metro, West Yorkshire's transport authority, has already shaved 35m off its total cost in an effort to make it more appealing to Ministers.

Just under 200m of government funding is now needed for the scheme in its current form, although local transport bosses stress that only 50m would be needed over the next five years.

The scheme will now have to compete for funding from the 600m pot of cash announced by Mr Hammond yesterday, along with a 23m rail package which includes a new station at Kirkstall Forge to the west of Leeds.

Developers have already pledged 4m towards the station, and if the scheme gets Government funding it could unlock 350m of private investment into a major development of flats, houses, shops and offices.

In North Yorkshire, officials hope to secure 35m for a bypass to the north of Bedale, Aiskew and Leeming Bar, which has been on the drawing board for more than 15 years.