For the long haul: Leaders stress commitment to coalition as railways get £9bn

The Government has denied there will be any additional fare rises but will go through with plans for hikes of inflation plus three per cent for the next two years, and inflation plus one per cent in 2015.

Transport Minister Norman Baker, speaking yesterday in Leeds, said the funding was a sound investment for taxpayers, claiming that for every £1 spent the economy would get £4 back.

The visit was part of a Government public relations offensive as Ministers sought to end weeks of speculation about the future of the coalition, culminating in the Tory backlash on Lords reform.

David Cameron, standing alongside his deputy, Nick Clegg to announce the rail improvements package, insisted he was “even more committed” to the coalition than he was when it was formed two years ago. “I believe it has real purpose, a real mission,” he said.

Mr Baker said the raft of transport measures would create short-term jobs in construction and medium-term jobs in other sectors. And, after years of additional rolling stock in the North being 25-year-old cast-off trains from the South, he said it would include new trains for the East Coast Mainline and “new or nearly new” electric commuter trains.

“It’s very important that we change the direction of travel from the last Government where there was a huge concentration of investment in the South-East,” he said. “If you look at the package today you will find it is quite Northern-based – we want to rebalance the economy away from London and the South-East.”