Chancellor George Osborne said of the cuts: "Getting on with what we promised. Reducing the deficit – that is how you deliver lasting economic security for working people. 

For as everyone knows, when it comes to living within your means, the sooner you start the smoother the ride." 

The savings come from Whitehall departments outside the protected areas such as the NHS, schools and overseas aid, and total £3bn. Of this transport is to see the biggest cuts of £545m although this includes £345m that is expected to be raised by selling off land around Kings Cross station. 

According to BBC News, the remaining savings are:

£124m – reduced contingency money held by the department

£31m – reduction in Transport for London funding

£23m – expected underspend on the Cycle Cities Ambition budget

£16m – expected underspend on the Regional Air Connectivity fund

£5m – expected underspend on the Stations Commercial Projects Facility

£1m – expected underspend on the Sheffield Tram Train Project

The BBC added that a spokesman for the department stressed that no projects are being cancelled and the underspends do not compromise the overall schemes.