The news of reduced funding for the region comes following the recommendations of the National Infrastructure Commission, the findings of which have been criticised for failing to deliver the investment needed to close the North-South divide in infrastructure and productivity.
Transport for the North will see its budget reduced from £10 million to £6 million per year, and will now receive no funding towards its planned roll out of contactless payment on rail, bus and tram networks across Northern England.
The loss of funding will also lead to the winding down of the Integrated and Smart Travel programme and its plans for smart ticketing to make it easier for passengers to change between modes of transport and operators in making their journeys.
The budget for Northern Powerhouse Rail, the proposed high-speed rail service running East-West across the region, has also been frozen, with £8 million diverted to the London to Manchester HS2 project, with the eastern leg to Leeds already delayed.
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