The framework contract is the latest victim of spending cuts as the Department for Transport faces a huge hole in its budget.

Managed Motorways involve converting the hard shoulder of stretches of the M62,M1,M6,M60 and M4/M5 into traffic lanes alongside new technology to ease traffic flow.

The programme was seen as a cheaper alternative to building new lanes to ease congestion.

Four contractors were announced as winners of the framework in February – Balfour Beatty, Bam Nuttall/Morgan Est joint venture, Carillion and Costain/Serco joint venture.

Work was due to be completed by 2015 but the initial phase of projects has already been put on hold as the Government conducts its spending review.

Work on the M62 was due to start in October but has been delayed alongside work on the M60.

A Department for Transport spokesman said: “In view of the uncertainty over the availability of funding for this scheme, ministers have taken the decision to delay the start of the works.”