Transport secretary Patrick McLoughlin also backed Sir David Higgins’ call to ditch a controversial £700m link between HS1 and HS2.

He said he would immediately commission HS2 Ltd and Network Rail to look at several of Sir David’s proposals in more detail.

This includes proposals to deliver benefits to the Midlands and the North, more quickly by completing part of the Phase two section to Crewe six years early.

In response to the HS2 Review, the Government has agreed to look at a more grandiose scheme for Euston station, including rebuilding of the once iconic Euston arch.

McLoughlin said: “I agree with the report that more can be made of Euston station.

“I will, therefore, ask HS2 Ltd and Network Rail to develop more comprehensive proposals for the redevelopment of Euston, working with the rail industry and the local community.

“This work should include proposals for the Euston arch which should never have been knocked down and which I would like to see rebuilt.”

The original masterplan for Euston was scaled-down in favour of a cheaper solution. But the Government will now consider a more ambitious plan for the area, which could attract greater private sector investment.

He added he would commission HS2 and Network Rail to consider in detail other recommendations to accelerate construction so that the Crewe section of Phase Two would be completed by 2027, not 2033, and to build a new integrated hub station at Crewe.

“I will also commission a study into ways to improve connections to the continent that could be implemented once the initial stages of HS2 are complete.”