MINISTERS are laying out multibillion-pound plans to improve transport in northern England.

Chancellor George Osborne said the “Northern Powerhouse” plans, including multibillion-pound rail schemes, has the potential to “revolutionise transport in the North”.

But transport unions described the package as “pie in the sky”.

The plans build on the concept of the so-called HS3 and could see 140mph trains reduce Liverpool to Manchester journey times to around 20 minutes.

The Liverpool-Manchester option could cost as much as £13 billion, while a plan to reduce journey times between Sheffield and Manchester from the current 48 minutes to 27 minutes could cost as much as £19 billion.

Other plans include developing new east-west road connections including a road tunnel under the Peak District and introducing Oyster-style smart travel cards and simpler fares across the North.

The Government has also said it will prepare a Hybrid Bill, to be laid during the next Parliament, for phase two of HS2, as well as widening sections of the M1, M6 and M62.

There are also plans for better connections to Manchester Airport and improvements to the A1.

The plans have come in a Northern Transport Strategy report published today by the Government and the newly-formed organisation Transport for the North (TfN). The report follows work by Network Rail on rail-improvement options.