THE Government has set out multi-billion pound plans to improve transport across the North of England.

Chancellor George Osborne said the so-called Northern Powerhouse proposal had the potential to revolutionise transport in the North.

But transport unions described the package as "pie in the sky".

The plans could see the introduction of Oyster-style smart travel cards and simpler fares across the North.

Improvements to rail lines including the East Coast Main Line through the North-East are planned.

It could also lead to the widening of sections of the M1, M6 and M62, as well as improvements to the A1.

The plans have come in a Northern Transport Strategy report published on Friday by the Government and the newly-formed organisation Transport for the North (TfN).

The report follows work by Network Rail on rail-improvement options.

Mr Osborne said: "Connecting up the great cities of the North is at the heart of our plan to build a Northern Powerhouse. This report has the potential to revolutionise transport in the North and we will work closely with TfN to help make it a reality."

But Mick Cash, leader of the Rail, Maritime and Transport union, said: "This is yet more pie-in-the-sky nonsense from the Government on the so-called Northern Powerhouse when in reality transport services across the region in the real world are lumped with clapped-out, overcrowded trains with any replacement programme light years off."

The report was published on the same day as Transport Secretary Patrick McLoughlin met leaders of Rail North Ltd to sign a formal agreement devolving more power to the organisation in the management of the Northern and TransPennine Express (TPE) franchises.

Rail North represents 29 local transport authorities from across the north of England, with a specific remit to promote rail devolution and improvement of rail services.