Major projects, such as Crossrail and Thameslink in London, reconstruction of Birmingham New Street and Reading stations, and upgrading the London Underground will continue. Expansion of Birmingham's Midland Metro light rail system and Nottingham's light rail network will go-ahead, as will an upgrade of the Tyne & Wear Metro centred on Newcastle. The government says it will introduce legislation in the current parliament to allow construction of a high-speed network.
However, regulated train fares will increase by 3% above the level of inflation from 2012 compared with 1% currently, and Transport for London will have its transport grant cut by 29% by 2014-15.
There could be more cuts, however, as a value-for-money review of rail spending is underway, but a full report is not expected to be published until March or April 2011.