Mayor of London Boris Johnson has welcomed the government's decision to earmark significant funds for transport initiatives in the city.

Chancellor George Osborne revealed the state is serious about investing more money into infrastructure upgrades between 2015 and 2021.

An unprecedented six-year settlement has been agreed for Transport for London, with the organisation receiving around £1 billion a year over the course of the deal. This is in addition to guaranteed borrowing set at £600 million annually.

London's transport networks are already undergoing major work, with the Crossrail project aimed at making the capital more accessible for rail users, while the government investment will be used to maintain the Underground system, create new cycle paths and upgrade roads.

Mr Johnson said the chancellor's announcement underlines the fact the government is serious about stimulating economic growth by making numerous transport improvements.

"This settlement gives us a far greater level of financial certainty in line with measures we have lobbied for and to deliver vital infrastructure," the mayor commented.