Transport schemes grind to halt in 'neglected' region

That means 15 major schemes in the region – many of which were approved by the previous Government – will now have to be reviewed and could even be scrapped.

They include the 250m Leeds trolleybus network – called the New Generation Transport (NGT) scheme, the A61 Penistone Road Quality Bus Corridor in north Sheffield, 20m of additional Supertrams in Sheffield and the Bedale, Aiskew and Leeming Bar bypass, expected to cost 35m.

Transport Secretary Philip Hammond said: "I am taking this action to ensure that no taxpayers' money is spent unnecessarily on transport schemes that are now under review.

"If we are to succeed in reducing the UK's record budget deficit, it is vital that not a single penny is wasted and we get the maximum value for money for every project."

Metro – the West Yorkshire Integrated Transport Authority – said it was frustrated the projects are being held up given the history of Government under investment in the region's transport network.

Leeds is the only major city in Western Europe without a rapid transport system and the NGT scheme would be the first of its type in Britain.

Its approval in March followed years of disappointment at the rejection of the city's proposed Supertram system and the Department for Transport (DfT) had said it would contribute 235m towards its 254m cost.

Chairman Ryk Downes said the coalition had an opportunity to end the "legacy of transport underspending".

"The delay is frustrating when, as the DfT has accepted, NGT alone will help to create 4,000 new jobs locally and generate a 160m per annum boost for the City Region's economy."

The Government has also performed a U-turn on an agreement made before the General Election where the previous regime promised Yorkshire 47m for small projects such as bus lanes and pedestrian crossings – that figure has now been halved.

Labour's Shadow Minister for Yorkshire and the Humber Rosie Winterton said: "It is clear that Yorkshire and the Humber will feel a disproportionate amount of these cuts."