The special industry group is the brainchild of Business Secretary Vince Cable and Transport Secretary Patrick McLoughlin.

They will jointly head it up with Terence Watson, president of rail manufacturer Alstom UK.

Contractors Amey, Balfour Beatty, Carillion and Costain have signed up to the newly-formed Rail Supply Group, which aims to get more small and medium-sized firms involved in the latest five-year delivery programme.

Government will inject £500,000 into the initiative, which will also seek to promote and help firms win work overseas.

The scheme, supported by the Rail Alliance and the Rail Supply Group’s member companies, will work with up to 500 firms in the first year.

Patrick McLoughlin, Secretary of State for Transport, said: “We are investing record amounts in building a world-class railway in this country, with major infrastructure schemes such as Crossrail, Thameslink and HS2.

“Other countries are also investing heavily in rail and metro systems, which also represent a massive opportunity for UK suppliers to generate jobs and growth at home.

“Through the Rail Supply Group we are determined to give them the support they need so they can respond to this global demand and secure long-term economic growth.”

The rail sector is supported by a supply chain of around 80,000 workers and 3,500 firms.

Watson, Rail Supply Group industry co-chair, said: “We want the UK to attract inward investment and, smartly done, this will benefit local supply chains, while our best suppliers will also be our best long term partners.”