Responding to a question from the former Chancellor Alistair Darling, George Osborne confirmed that the increase in transport funding would come from public money.
He also said he was looking at ways to reform planning laws to "accelerate the delivery of [infrastructure] projects".
Shadow financial secretary to the Treasury Chris Leslie writes for ITV News in response to the Chancellor's Spending Review.
While the Conservatives and Lib Dem strategies are clear enough, Labour's response to government cuts is not yet obvious.
By excluding pensions and the benefits associated with the economic cycle, Osborne has put an automatic cap on a narrow range of benefits.