Chancellor Philip Hammond is to announce an extra £300m to improve rail links in northern England, in a speech to the Conservative party conference.

Plans to electrify the whole Trans-Pennine route had previously been axed.

But the new money will be used to ensure HS2 will link to faster trains between Liverpool and Manchester, Sheffield, Leeds and York – so-called Northern Powerhouse rail.

Mr Hammond will also allocate £100m for 33 road schemes, from existing budgets.

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The Northern Powerhouse rail scheme is being drawn up by local authorities and business leaders to create connections between HS2 and cities not directly on its route. It is likely to rely on “bi-mode” trains that can run on diesel and electric power.

Mr Hammond will say cities in the East Midlands, such as Leicester, would also benefit from the new cash.

“This investment will go towards ensuring HS2 infrastructure can link up with future Northern Powerhouse and Midlands rail projects – helping the towns and cities of the North reach their full potential.”

The new road projects include 10 in north-east England, 13 in north-west England and 10 in Yorkshire and Humber.