George Osborne to green light HS3 and Crossrail 2 rail projects in north and London

George Osborne is set to green light major new rail developments, housing plans and key new infrastructure projects in the north of England and London when he delivers his Budget on Wednesday.

George Osborne has allocated £300m to following projects, according to the Treasury:

  • Crossrail 2

An artist's impression of the proposed station at London Euston. Credit: PA

London will get the second-stage of the ambitious Crossrail network, with the government allocating £80m to the development fund. Transport for London will be expected to match this figure, according to an official statement.

The route will connect Surrey and Hertfordshire via stations in central London like King's Cross, Victoria, Chelsea and Clapham Junction.

Supporters of Crossrail 2 and the Goverment say that the new link would give London's economy a multi-billion-pound boost, with claims suggesting it might created hundreds of thousands of new jobs and homes.

"The Northern Powerhouse"

George Osborne attends the naming ceremony for a refurbished Class 319 electric train at Manchester Piccadilly Railway Station. Credit: PA

  • HS3

The latest high speed rail project will link Leeds and Manchester as part of Osborne's ambitious "Northern Powerhouse" plan.

£60m has been pledged to improve the rail network, reduce journey times and to improve links between several key northern cities.

A full blueprint for HS3 will be drawn up by next year.

  • Major road improvements and a potential trans-Pennine tunnel

The possibility of a trans-Pennine tunnel between Sheffield and Manchester - £75m has been set aside to develop plans.

Options to enhance the A66, A69 and the north-west section of the M60.

Highways England will receive £161m to "accelerate upgrades" to the M62 between Rochdale and Brighouse.

  • 30,000 starter homes

It is said by some critics that the UK needs to build 240,000 homes a year to keep up with demand for housing. Credit: PA

A £1.2bn to release brownfield sites to build 30,000 'starter homes' across the country is also to be announced by Osborne.

The Treasury says that "this programme will help councils build homes for first-time buyers, and is part of a wider drive to deliver the biggest affordable house building programme since the 1970s."

  • Why does this matter?

These developments came as the National Infrastructure Commission - set up by the Government in 2015 to advise on long-term projects to boost the economy - released a report calling for "immediate and very significant investment" in transport for the North of England, and a plan for longer-term transformation to cut journey times, raise capacity and improve reliability.

The government hopes that the major investment in roads, railways and housing will "push up living standards and boost productivity,

The Chancellor said: