Chancellor Philip Hammond is to announce an additional £300m to enhance rail hyperlinks in northern England, in a speech to the Conservative Get together convention.
Plans to impress the entire Trans-Pennine route have been unsure.
However the brand new cash can be used to make sure HS2 will hyperlink to sooner trains between Liverpool and Manchester, Sheffield, Leeds and York – so-called Northern Powerhouse rail.
Mr Hammond will even allocate £100m for 33 highway schemes, from present budgets.
- Tories’ election post-mortem in a marquee
- May: We ‘listened’ on student fees
- May promises £10bn Help to Buy boost
- Tories greeted by large protests
The Northern Powerhouse rail scheme is being drawn up by native authorities and enterprise leaders to create connections between HS2 and cities circuitously on its route. It’s prone to depend on “bi-mode” trains that may run on diesel and electrical energy.
Mr Hammond will say cities within the East Midlands, akin to Leicester, would additionally profit from the brand new money.
“This funding will go in the direction of guaranteeing HS2 infrastructure can hyperlink up with future Northern Powerhouse and Midlands rail tasks – serving to the cities and cities of the North attain their full potential.”
The brand new highway tasks embody 10 in north-east England, 13 in north-west England and 10 in Yorkshire and Humber.
By Chris Mason, BBC political correspondent in Manchester
Philip Hammond shouldn’t be one in every of your onerous hat, fluorescent jacket, picture op form of politicians.
However he’ll embrace his predecessor’s pet mission, the Northern Powerhouse at present, if not George Osborne’s love of constructing web site apparel.
Alongside the sections of the speech about cash for highway and rail tasks although, look out for his remarks on capitalism.
They’re fascinating for 2 causes.
The primary is the Labour chief Jeremy Corbyn’s new affect on the political agenda.
His remarks final week about capitalism’s “disaster of legitimacy” had already prompted the prime minister to intervene, only a day later, along with her defence of the market economic system.
And now up steps Philip Hammond along with his personal tackle the identical track.
The second is the glimpse it affords into an inside Conservative debate about how one can tackle Mr Corbyn.
Settle for he’s at the very least partially onto one thing, and tack just a little left.
Or keep on with a full-throated defence of the free, albeit regulated, market.
The chancellor can be set to make use of his convention speech to mount a defence of free market economics, which he claims is coming underneath assault from Labour chief Jeremy Corbyn.
He’ll say: “Our economic system shouldn’t be damaged: it’s essentially robust.
“And whereas no-one suggests a market economic system is ideal, it’s the finest system but designed for making folks steadily higher off over time and underpinning robust and sustainable public providers for everybody.
“As this mannequin comes underneath renewed assault, we should not be afraid to defend it.”
The Conservatives kicked off their week in Manchester by saying plans to freeze scholar charges and pledge an additional £10bn for the Assist to Purchase scheme as a part of an effort to win over youthful voters.
Mr Hammond will say in his speech: “We’re the celebration of progress. The celebration that makes a transparent dedication to the following technology – that they are going to be higher off than us; and that their youngsters can be higher off once more than them.”
The federal government is, in the meantime, underneath stress to pause the nationwide roll-out of Common Credit score amid mounting concern households compelled to attend six weeks for his or her first fee can be left destitute and homeless.
Work and Pensions Secretary David Gauke is anticipated to announce new steerage to job centres for giving money advances to claimants, in his speech to the Tory convention later.
Prime Minister Theresa Might stated she and Mr Gauke had been “taking a look at” methods to assist affected households however they don’t seem to be anticipated to halt the rollout, regardless of pressure from 12 Tory MPs, a former government adviser and Labour.