The first project in the programme is the £20m investment to improve the rail link and station at Manchester airport.

Working closely with Transport for Greater Manchester and Manchester Airport Group, the start of work at the airport station will take place 18 months head of the original plans as it will be carried out by contractors constructing the extension of the Metrolink tram system to the airport.

Chancellor George Osborne launched the start of work to build a fourth platform at Manchester Airport train station, although work will not start until next month.

Completion of the platform, due by the end of 2015, will mark the first milestone for the wider Northern Hub, a scheme to lay new track to improve the region’s heavily-congested rail network.

It will run alongside the current £400m scheme to electrify the lines between Manchester, Liverpool, Preston and Blackpool by 2016. Combined with the £44m Victoria Station facelift it takes total investment to more than £1bn.

A major element of the Northern Hub is a new rail bridge to connect Victoria and Piccadilly, known as the Ordsall Chord, which Skanska Construction is believed to have secured.

The Chancellor said:  “Each part of this project, like the first work at Manchester Airport station that I’ve kicked off today, will help us build the infrastructure we need to compete in the global race.

“This investment will ensure growth is not concentrated in any one place by keeping Britain connected and creating thousands of local jobs, delivering a brighter economic future for the whole country.”

Councillor Andrew Fender, chair of the Transport for Greater Manchester committee, said: “I am pleased that we have been able to work with our partners to deliver this crucial addition to the airport’s railway station 18 months ahead of schedule.

“That’s made possible by capitalising on the delivery of our new Metrolink line to Manchester Airport, funded entirely by the 10 Greater Manchester authorities, which will add yet further links to this key employment centre.”