Expected to create 150,000 construction jobs, upgrades will cover road, rail and air travel nationwide, as well as waste management, broadband network, renewable energy and flood defences following disruption during the winter storms.

The projects address a number of ‘pinchpoints’ in the road network, including upgrades to the A1 Barton to Leeming motorway which will target a 20% reduction in journey times. Funding will also be used for for improvements to the M6, M3, M25 and M1, with a number of major road projects to be completed by the end of the year.

Of the £36bn planned investment, £5bn will be from public sources, £21bn from private sources and £10bn from joint public-private sources, with the Nottingham tram extension, Heathrow Terminal 2 upgrade and Gwynt y Môr offshore wind farm also coming under the proposals.

The funding also begins a £38bn rail improvement programme, set to take place over the next five years.

Chancellor of the Exchequer George Osborne said: ‘As part of our long term economic plan we are investing in infrastructure around the country to create a more balanced, resilient economy.

‘Because of the tough decisions we have taken in day to day spending, we can prioritise public investment where it is most needed and create the right conditions for private investment in infrastructure where it brings value for the taxpayer.’