The Liberal Democrats have set out their plans to reopen thousands of miles of railway tracks and stations which would be funded by cutting capital spending on roads by £3bn. This new Rail Expansion Fund would lead to the biggest expansion of the rail network since the Victorian era, the party claims.

Lib Dem transport spokesman Norman Baker said the plan would "make our railway great again" and that “High speed rail is hugely important, but it is only part of the 21st-century rail network Britain needs”

Councils and transport authorities could bid for money from the Rail Expansion Fund to improve, reopen or establish services. Specific decisions on which services could be expanded would not be made until bids were received, the Lib Dems have drawn up a list of schemes which could be suitable for early delivery such as the electrification of lines from Manchester to Liverpool, Leeds and Preston; from Birmingham to Bristol and Basingstoke; and between Leeds and York.

New or reopened stations could be funded in Ilkeston, Kidlington, Wantage, Corsham, Tavistock, Middlewich, Ashington, Blyth, Washington and Skelmersdale.

New lines could link Southport with Preston, Bournemouth with Ringwood and the Midlands main line with the Birmingham-Derby route.

And track could be reopened between Exeter and Okehampton; Tavistock and Plymouth; Penrith and Keswick; and Galashiels and Carlisle.

Their policy announcement comes a month after the government outlined its plans for a new high-speed rail network, featuring 250mph trains, which would include a new line between London and Birmingham, with future extensions planned to northern England and to Scotland.

The Conservatives have already said that if they win the election, they would start work on the project two years earlier than the government's plan ie in 2015

According to Norman Baker, the Liberal Democrats would cut the government's major roads project for the years up to 2013/14 by 90% and divert almost £3.5bn to rail. About £480m now intended for projects like motorway widening and hard shoulders would go towards the existing policy of cutting rail fares.

The remaining £2.95bn would go into the Rail Expansion Fund.

RAC Foundation Prof Stephen Glaister said: "To start cutting the roads budget to expand rail services is unlikely to be the best use of scarce taxpayers' money either in financial terms or by way of serving the vast majority of the population.

"The public liability does not just end once new lines are constructed. Rail services are heavily subsidised by the Exchequer."

Prof Glaister said building roads could also help the environment because steadily moving traffic produced less carbon dioxide than cars stuck in traffic jams.