Chancellor George Osborne has announced a two-year Regional Growth Fund designed to stimulate investment in regional infrastructure projects as the economy recovers.

Today, as part of his Emergency Budget speech in Parliament, Osborne announced plans to maintain current capital spending in infrastructure through the fund, and invest in the following four regional rail projects:

• the Tyne and Wear Metro
• the extension of the Metrolink tram system in Manchester
• Birmingham New Street
• links between Sheffield and Liverpool.

He also announced plans to introduce tax breaks for companies that take on workers in regions outside southern England.

• New Birmingham tram line gets green light
• Osborne’s “emergency Budget” due on 22 June
• Emergency Budget: Planning to be simplified in growth areas
• Blog: Fair Emergency Budget, but we await more detail
• Manchester consortium bids to run £50m development fund