Chancellor Rachel Reeve has confirmed funding to kickstart HS2 tunnelling  from Old Oak Common to Euston in a package of measures to invest in infrastructure.

The Chancellor also committed an extra £700m for school building next year and £1bn to tackle the backlog of repairs and upgrades at the country’s hospitals.

Reeves also said committed to releasing an extra £500m to deliver 5,000 more new affordable homes.

The cash would be a top-up to the existing Affordable Homes Programme and comes ahead of the Government’s Housing Strategy due to be set out in detail in the Spring.

In a set of big Budget reforms she set out plans to raise taxes by £40bn, the bulk coming from changes to employers national insurance contributions, expected to claw in £25bn.

Among other big tax changes saw capital gains and inheritance taxes raised, along with business rates and pension tax. To fund greater spending on infrastructure the Chancellor confirm changes to fiscal rules allow the value of assets to be calculated alongside liabilities.

The final HS2 5.4-mile tunnel drive to Euston from Old Oak common is expected to cost around £1bn.

Skanska Costain Strabag JV are advanced with preparation works to launch the two final TBMs from the Old Oak Common Box towards Euston, despite uncertainty about the Euston terminus plan.

The Chancellor confirmed £1.4bn for the school rebuilding programme, including an increase of £550m this year.

This will allow 100 project plans to begin delivery across England next year and begin to tackle the crumbling school and college buildings across the country.

Health capital spending will be raised next year by £1bn to £3.1bn to tackle the backlog of hospital repairs and upgrades.

An extra £500m will be injected into delivering road repairs alongside a commitment to fund the transpennine rail route upgrade and delivering the next phases of East West Rail.

On the green economy the Government said it would also fund 11 new green hydrogen projects with more cash for the warm homes programme.