Video: Osborne green lights two key transport schemes in Yorkshire

A 150m scheme to allow motorists to use the hard shoulder on a congested section of the M62 has been approved, he revealed at the Yorkshire Post Excellence in Business Awards last night.

And a 14m project to build a new entrance to Leeds railway station has also survived the Government axe ahead of next week's long-awaited Comprehensive Spending Review.

"There will be many more announced over the next couple of weeks," Mr Osborne told the Yorkshire Post in an exclusive interview. "I want to spend on things I think will help create jobs and allow a private sector recovery.

"Both the Leeds station access and the M62 scheme struck us as of real economic benefit to West Yorkshire. We've looked at a list of all the potential projects in the country and gone through and prioritised those things that are really going to help the economy grow and help businesses expand."

Mr Osborne was the guest speaker at last night's awards at the Queens Hotel in Leeds, honouring the region's finest businessmen and women. Next Wednesday he will unveil billions of pounds of cuts in the Comprehensive Spending Review which will map out Government spending for the next four years.

Ministers – accused by Labour of offering too pessimistic an outlook as they cut the deficit – are acutely aware of the need to offer some positive news amid the gloom, as signalled by last night's confirmation the two schemes will go ahead.

But Mr Osborne warned of the dangers if the Government does not meet the challenge of making cuts, where needed.

"If we were to fail or lose our nerve and divert from our course that would be an economic calamity and we will not do that," he said. "We will not divert from the plan."

The M62 scheme, between junctions 25 and 30, will see a "managed motorway" system introduced, allowing motorists to use the hard shoulder at busy times.

The new southern access to Leeds station is seen as key to reviving the Holbeck area of the city but the project had been under threat since the coalition Government decided to review all major transport schemes.

But several other schemes remain in doubt, including plans for a new station at Kirkstall Forge, west of Leeds, which could unlock millions of pounds of private investment.

Mr Osborne said the Government would announce a "whole range of projects" to boost the region's economy over the coming days and he was well aware of business warnings about the importance of improving Yorkshire's transport network.

"I've been to Leeds many times in the past few years and every single time people have raised with me transport in West Yorkshire.

"Businesses have made this point, and I did a Yorkshire Post lunch a couple of years ago and people were raising this with me.

"In opposition I promised we'd be able to do something about road links and we've delivered on that promise."

In his speech last night, Mr Osborne told business leaders he would work with them to help them lead the country out of the economic crisis and he thanked those in Yorkshire who joined in the Tory campaign against National Insurance increases before the election.

He said the Government would try to provide economic stability, low business taxes, ease unnecessary regulations and providing an environment in which private firms can succeed.

Leeds West MP Rachel Reeves welcomed the go-ahead for the new Leeds station entrance, adding: "I remain hopeful that the Chancellor will also give the go ahead to Kirkstall Forge railway station next week."

Full coverage of the Yorkshire Post Excellence in Business Awards in next week's Business Tuesday in the Yorkshire Post, and online with video and podcast.