A North Yorkshire MP says hopes to upgrade the A64 “are not particularly good” after Chancellor Rachel Reeves wielded the axe on a range of transport schemes yesterday (Monday).

Thirsk and Malton’s Conservative MP Kevin Hollinrake also hit out at planned public sector pay rises as “payback” for Labour’s union paymasters.

However, the recently-elected York Outer MP Luke Charters branded various cuts  "a sad reality" the result, he said of  Tory "economic incompetence."

In Parliament, Britain’s new Labour Chancellor accused the former Conservative government of leaving an unfunded overspend of £22 billion in government budgets, including £1.6billion in the transport budget.

The Leeds West and Pudsey MP announced the cancellation of the £1.7bn Stonehenge road tunnel and the £350 million A27 Arundel By-pass, saying these schemes had not been budgeted for and were thus "unaffordable."

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To save £85million, the "Restoring our Railway" programme was also cancelled, with Ms Reeves adding individual transport projects would be “assessed” through a review by transport secretary Louise Haigh.

Mr Hollinrake, who has long-campaigned for the A64 to be dualled north east of York, told the Press that has far he knows a planned upgrade of the A64 was “still scheduled” for consideration in the Department of Transport’s road investment strategy.

In March, the MP told a meeting of North Yorkshire Council that a planned upgrade of the A64 from the Hopgrove Roundabout to Barton Le Willows was “on a knife edge.”

At the time, he said a decision was expected in the “coming weeks.”

In March 2023, former transport secretary Mark Harper said the £300million project would continue to be developed, but works were now being considered for 2030-35 rather than 2025-30 as originally planned.

Today, Mr Hollinrake told the Press: “We are awaiting confirmation as to whether it will make the shortlist.”

“But it’s not looking particularly good after what we heard yesterday.”

The MP continued: “Rachel Reeves made a choice to increase the pay of public sector workers. Unions have been funding the Labour Party to the tune of hundreds of millions over the years. It’s pay back.”

Payrises include 22% for junior doctors and pay rises of over 5% for others in the public sector.

“They took that money by taking the winter fuel payments of pensioners and removing the cap to social care payments and by cancelling transport projects, putting the road improvement programme in jeopardy.”

“It was dressed up as righteous anger blaming the previous government. It was a cynical choice to fund the union base and take it off pensioners, social care and transport,” he added.

Mr Charters commented: “Yesterday, the Chancellor spoke in Parliament about the financial position she has inherited from the previous Government.

"At the despatch box, she provided proof that the Conservatives knowingly overspent departmental budgets to a tune of £22bn. This represents a shameful dereliction of duty not only to the public, but themselves.

"They have lived beyond the country's means - and left us to fix their mess."

In the House, Ms Reeves also announced a pause to 40 new-build hospitals.

The chancellor again said these had not been funded by the previous Conservative government, who had left an “unforgivable” inheritance.

She also said the pay rises were because her government was accepting the findings of independent pay review bodies. Recent years had seen the highest number of strikes in a generation, with strikes in the NHS alone costing £1.7 billion last year.

The Press has approached the Department of Transport for comment.