The regulator has identified £2bn in savings from spending plans put forward by Network Rail  for the next five years.

But most of the cuts to Network Rail’s Strategic Plan for the railways between 2014 and 2019 are in operational efficiencies on the day-to-day cost of running the network.

Spending on maintenance and new civils work has fared better in the review with £12bn of upgrade work in the pipeline.

Network Rail wants to spend £12,388m on enhancement work during the period which has been cut to £12,239m by the regulator.

Renewals work had a £14,635m budget pencilled-in by Network Rail which has been reduced to £12,681m.

Maintenance work sees a fall to £4,645m from Network Rail’s original figure of £4,669m.

CECA director of external affairs Alasdair Reisner said: “The last decade has seen rapid escalation in the use of our railways, which has created a boom in construction on the network to meet growing demand.

“If we are to keep pace with this growing demand it is vital that Network Rail is supported to continue this investment.

“We are pleased that the Office of Rail Regulation appears to support investment to maintain and upgrade our railways, while still challenging both Network Rail and industry to reduce the cost of delivery.

“We believe the demands on efficiency will be deliverable, but will require co-ordinated effort and a continuation of Network Rail’s moves to improve its engagement with its supply chain to produce optimum results.

“We are particularly pleased to see that the regulator has indicated greater backing for works to structures, recognising their crucial importance to the on-going safety and smooth running of the railway.”