Chancellor George Osborne has given his backing to proposals that could transform transport in the north of England.

He welcomed the publication of the 'One North: A proposition for an interconnected north' report, which could help to realise his ambition of creating a "northern powerhouse".

The document contains details of a transpennine rail link that could connect the region's cities and airports. Trains using the line would be able to travel at 125 mph, cutting the journey time between Leeds and Manchester to 30 minutes.

Costing £15 billion over 15 years, the scheme would also involve a range of highway improvements and the introduction of city region rail services. Collectively, the measures could result in a 120-150 per cent increase in peak capacity for Leeds and Manchester, and a 100-130 per cent boost for Liverpool, Sheffield and Newcastle.

In a speech at the Beetham Tower in Manchester, Mr Osborne said: "Work with me over the coming months and together we will make a reality of the plan I've set out for the northern powerhouse."