The future of a billion-pound transport plan that could see ‘trams’ running on streets across the Tees Valley is in doubt after the funding was placed under Government review.

A package of 26 transport projects was announced by Mayor Ben Houchen in January to be funded using £1bn from the scrapping of HS2.

The plans were signed off by the Tees Valley Combined Authority’s cabinet later that month, but at a meeting of the group on Friday (September 27) Lord Houchen said the funding was now being reviewed by the Government.

The Mayor told the meeting said: “I had a meeting with the Secretary of State about a month ago. I was told that (funding) is now under review by the Treasury.”

Potential rail devolution, digital traffic lights, new rail stations, and studies into a host of projects including a possible tunnel under the Tees were all earmarked for funding from the £1bn pot.

(Image: SARAH CALDECOTT) Fifteen circular trackless ‘tram’ routes running in Darlington, Middlesbrough, Redcar, Stockton and Hartlepool town centres were also to be delivered using just £20m.

At the time he said the ‘hop-on hop-off’ services would “absolutely” be running “within two years”.

The Transporter Bridge over the Tees is also set to receive £30m to bring the landmark back into working order.

Citing the project to restore the famous crossing Middlesbrough Mayor Chris Cooke asked the cabinet meeting how projects would be prioritised if money is slashed, saying: “I’m going to suggest that we prioritise the Transporter Bridge, obviously”.

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The Mayor responded: “If the government come back and reduce our funding we would have to bring the whole transport project back to cabinet.

"Then every single project will have to be reconsidered.”

A Department for Transport spokesperson said: "We remain fully committed to improving transport in every part of the country. More information on funding will be set out after the Spending Review."