Lord Adonis, a former transport secretary and backer of HS2, will now play a key role in strategically mapping out what the country needs to build for its future.

The new commission, which will be modelled on the independent fiscal watchdog the Office for Budget Responsibility, will be set up in law in an attempt to depoliticise infrastructure projects.

It will report at the beginning of every Parliament on which infrastructure projects should be prioritised.

Among his first tasks, Lord Adonis will concentrate on London’s transport system, connections between the Northern cities, and modernising the energy network, financed by selling off land, buildings and other government assets.

Osborne will also reveal plans to integrate 89 local authority pension funds in England and Wales into six regional funds to try to encourage them to invest in major infrastructure projects.

The idea of a National Infrastructure Commission was a key Labour policy before the last election, based on a report by former Olympic Delivery Authority chairman and past Railtrack chief executive John Armitt.

John Cridland, CBI Director-General, said: “Updating the UK’s infrastructure is critical to sustainable growth and productivity, and we’ve long called for an independent body to assess our long-term needs.

“This new Commission is welcome but we must not duck the important infrastructure decisions that need taking now, particularly on expanding aviation capacity in the South East.

“Business will want to see a decision on airport capacity by the end of the year, in line with the Government’s commitment.”