High-speed railway to link Scotland and England; 'make Britain smaller'

If successful, it could halve journey times to as little as two hours from London to Scotland.

The public however needs to be consulted, a process which could take as long as seven years before work can commence.

"Subject to this consultation, the London terminus for the high-speed line would be Euston, the Birmingham city centre station would be at Curzon Street, and there would be interchange stations with Crossrail west of Paddington and near Birmingham airport." said Lord Adonis.

Once the route to Birmingham completes, then a further Y-shape network to Manchester-Liverpool and Sheffield-Leeds would be built.

If that also went well, then a final connection to Scotland would be undertaken.

The government however is firm on its targets for work to start in 2017, as the cost for the project, £15.8bn to £17.4bn, may impact on its plan to 'halve the deficit'.

"I believe that character is not about telling people what they want to hear but about telling them what they need to know." said Gordon Brown yesterday as he set out his government's promise to 'halve' Britain's £174bn deficit over the next four years.

"It's about having the courage to set your mission and the courage to take the tough decisions and stick to them without being blown off course, even when the going is difficult." he added.

The project, is expected to produce £2 benefits for every £1 invested by boosting the economy and creating over 10,000 jobs.

The Tories have promised to start work on the £15.8bn project two years earlier if they get into power.

"Labour have betrayed the vision we set out three years ago for High Speed Rail. In leaving out Heathrow and setting out plans that give no firm guarantees north of the Midlands, Labour’s plans are flawed both by lack of ambition" said shadow Transport Secretary, Theresa Villiers.

"Over the next 20 to 30 years the UK will require a step-change in transport capacity and connectivity both to promote and respond to long-term economic growth," Lord Adonis said.

"High speed rail would be by far the most effective way to achieve this step-change, offering a balance of capacity, connectivity and sustainability benefits unmatched by any other option."