Reeves revealed in Parliament on Monday that the previous government had committed to an overspend of £1.6bn in the transport budget this year.

The two routes have been sacrificed after Reeves claimed the Conservatives “made unfunded commitments knowing the money wasn’t there.”

She added that the initial cuts would not be enough to fix the country’s finances and “more difficult decisions would be needed.”

Reeves also cancelled the Restoring our Railways scheme to save £85m and promised a review of the October 2020 pledge to build 40 new hospitals by 2030.

Reeves said: “Only one hospital has opened and six started construction.

“There is nowhere close to the funding needed so we will carry-out a complete review of new hospital programme with a fully costed and realistic timetable for delivery.

“If we cannot afford it we cannot do it.”

Reeves confirmed her first Budget will be on October 30 and it will involve “difficult decisions across welfare, spending and tax.”

A consortium of Bam Nuttall, Aecom and Mace was awarded the A27 project back in 2021 with the aim of starting construction last year.

A long-running legal challenge has held-up the start of construction on the £1.7bn A303 Stonehenge Tunnel scheme where the three-way European MORE joint venture between Spanish contractor FCC, Italy’s WeBuild and Austria’s BeMo Tunnelling is lined-up as main contractor on the eight-mile stretch of road upgrade.

The FCC-led JV has enlisted Atkins, Jacobs and Spanish designer Sener as the design joint venture.

Costain and Mott MacDonald have been awarded the £60m contract to be the project’s Delivery Assurance Partner to help co-ordinate and oversee construction of the scheme.

The Treasury said: “These are low value, unaffordable commitments which would have cost £587 million next year.”