He said: “We need new super-fast digital networks for companies across our country. These do not exist today. Look at what countries like China and Brazil are building and you see we are at risk of falling behind the rest of the world.”

Mr Osborne also said he was “identifying more than 500 infrastructure projects we want to see built over the next decade and beyond”.

He said: “Roads, railways, airport capacity, power stations, waste facilities, broadband networks - and we are mobilising the finance needed to deliver them too."

Mr Osborne said he had reached agreements with two major pension funds to unlock another £20 billion of private investment for modern infrastructure.

He adapted a line from former Labour Prime Minister Gordon Brown's time in office by saying he would use “British savings for British jobs”.

Among the projects highlighted by the Chancellor was the electrification of the Transpennine Express and halving the bridge tolls on the Humber Bridge.

He said money would be spent on roads including the A45, A43, A42, A4 and A14. In London, projects include the Northern Line being extended to Battersea, the M4 in South Wales and sleeper trains to Scotland.

Other schemes which have been given Government support included a £4.1billion ‘super-sewer’ around the capital, a £270million scheme to ease congestion on the M3 and M6 and a dual carriageway to Manchester airport.

He said: “This all amounts to a huge commitment to overhauling the infrastructure of our nation. We will match it by overhauling the digital infrastructure too.”

The Government would deliver super-fast fibre broadband to 90 per cent of homes and mobile coverage to 99 per cent to help create an “economically vibrant countryside”, Mr Osborne said.

The plans were welcomed by industry. David Higgins, chief executive of Network Rail, said: “The news of further rail investment is great news for passengers and for our supply chain, with tangible benefits for rail users and more jobs being created.

“Network Rail will play its part in spending this money wisely and ensuring it maximises value for money for the taxpayer.”

But Stephen Joseph, a spokesman from the Campaign for Better Transport, said the money would be better spent on maintaining the existing road network.

He said: “The Government has gone for some big dirty road projects which will add to dependence on imported oil supplies and simply move traffic jams a few miles.