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.
– Maria Eagle MP, Shadow Transport Secretary
Government promises of rail investment after 2012 do not justify inflation-busting fare rises now. None of the rail schemes being pledged this week will see a penny of money spent on them until at least 2012 with many of the improvements not benefitting passengers until the next decade.