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The main east coast line will receive millions of pounds, as part of a countrywide programme of rail investment. The aim is to reduce journey times and increase the number of passengers travelling between the North East and London.
The government has also confirmed a previous announcement to electrify the Trans-Pennine route between Manchester and York.
Th North East Chamber of Commerce has welcomed the announcement that billions of pounds will be ploughed into the country's railways. Only a small proportion of the money will be spent in the North East. Even so, the Chamber says improvements across the north of England will have wider benefits.
Deputy Primeminister Nick Clegg MP comments and the investment planned for 2014.
Shadow Transport Secretary, Maria Eagle MP gives her reaction to the investment.
The Shadow Transport Secretary Maria Eagle said the investment programme must not be paid for by further fare rises for rail users.
Latest ITV News reports
The East Coast mainline will receive a multi-million pound investment. But how will the North East benefit?
The Department for Transport says the investment is part of a £9.4bn programme of improvements to the rail network in England and Wales.