Chancellor Rachel Reeves has hammered the final nail in the coffin for a plan to extend Metrolink trams to Bolton from Bury, and to provide a rail link from Rawtenstall to Bury.

In a statement delivered to the House of Commons just after 3.30pm today, Monday, the Chancellor said the previous government had "covered up" a "£22 billion hole" in spending.

Former Chancellor Jeremy Hunt rubbished the claims, saying finances were audited by the Office for Budget Responsibility prior to the election.

Ms Reeves added she would be asking departments to find savings, and would be stopping "non-essential spending" on "consultancy and government communications".

The Chancellor also announced the "Restoring Your Railway Fund" will be scrapped – affecting transport plans in Bury and surrounding areas.

Announcing the cut to the Commons, Ms Reeves repeatedly said: “If we cannot afford it, we cannot do it.”

Plans to reopen the East Lancashire Railway between Rawtenstall and Bury are now up in the air.

Dubbed the "City Valley Rail Link", the proposals saw Rossendale Borough Council making the case for a commuter and visitor rail link to be restored between the two towns, with an interchange to Metrolink trams at Buckley Wells – something the borough council said could grow the local economy by "at least 3,100 new jobs over the next 25 years" back in 2021.

Work to develop the case for the link had been awarded £50,000 by then-chancellor Rishi Sunak in 2021.

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Plans to extend the Metrolink from Radcliffe to Bolton are now also seemingly dead.

In 2020, a bid was submitted to the government’s "Restoring Your Railway Ideas Fund" to develop a strategic outline business case to connect Radcliffe and Bolton via rail again, reviving existing disused track bed and bridging the gap between areas along the route.

The scheme was awarded £50,000 of funding through the fund.

However, earlier this year, sister paper The Bolton News saw a report created by Transport for Greater Manchester, which stated that all seven options for a tram extension or "bus rapid transit" route between the areas would be "poor" value for money – casting doubt on the plans.

Now the fund has been cancelled.

Other schemes which now have an uncertain future include reopening a line between Ashton and Stockport and improving services between Blackpool South and Preston.

In other parts of the country, plans to restore a railway line between the south west town of Portishead and city of Bristol had received planning consent – but, despite years of campaigning, the plans now appear to be at risk.

Prior to the Chancellor’s announcement, the area’s first-ever Labour MP said he was "distressed" at reports the plans could be at risk.

According to a document released after the announcement, individual transport schemes “will be able to be reconsidered through the Transport Secretary’s review.”

Transport for Greater Manchester has been contacted for comment.

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