The Office of Rail Regulation (ORR) is cutting £1.7 billion in Network Rail's spending.

This was outlined as part of ORR's final determination proposals for Control Period Five (CP5), which will run from April 1st 2014 to March 31st 2019 - it also announced £21 billion for maintaining the rail network during this timeframe.

It believes Network Rail will be able to operate nine out of ten trains on time in regional, Scottish, London and south-east areas, as well as improving the efficiency of long-distance services. ORR will also be placing additional checks to chart the progress in adapting the network to climate change and impact from the weather.

ORR chief executive Richard Price said: "Network Rail has made great strides in improving safety, performance and efficiency on Britain's railways."

Network Rail has until February 7th to either formally accept or appeal the final determination and will publish a delivery plan for what it aims to achieve on March 31st.

Chief executive for Network Rail David Higgins said: "The next five years for the railway will prove to be a critical challenge."