Government backing has been pledged for a new high-speed rail link between northern cities that will boost the region's economy.

Responding to a new report into HS2 by Sir David Higgins, the prime minister and the chancellor have backed plans for the HS3 connection, which could cut the Leeds-Manchester journey time from around 55 to between 26 and 34 minutes.

They also welcomed Sir David's recommendations that co-operation on transport issues should be formalised in the north. A new body, Transport for the North, is to be set up to work together with other authorities and stakeholders to coordinate transport projects in the region.

A comprehensive transport strategy for the region will now be drawn up by the government and Transport for the North, providing options, costs and a delivery timetable for a HS3 east-west rail connection.

Mr Cameron said: "I welcome Sir David Higgins' report, which will help our work to create a northern powerhouse and ensure that HS2 delivers the maximum economic benefits."