The Office for Rail Regulation (ORR) published its review yesterday of infrastructure company Network Rail's proposals for the next five years, ranging from major projects to efforts to reduce disruption from engineering works.

Mr Jackson said that compared with some other areas, Peterborough had "got off lightly", as the ORR has retained major spending on the city's railway station and costly work on the East Coast Main Line in the spending blueprint.

He said: "I think it's good news for the simple reason that if you look at projects in other areas, they have had very substantial cuts. For instance, some allocations in London and the South East have been reduced significantly, so in comparison we have got off quite lightly.

"The redevelopment of the station will fit in well with the regeneration of the city centre, and I don't think that can wait any longer.

"We want to retain the viability of the city as an economic and transport hub, and the sooner that Network Rail can get on with this work, the better."

The review published yesterday by the ORR will govern Network Rail's activities from 2009 to 2014.

Its findings are now out to consultation until October, but the amounts of money it says should be spent on this area more or less match what Network Rail says it needs to invest.

For instance, the infrastructure company reckons it has to splash £28 million on improvements to Peterborough railway station, including building an extra island platform.

The ORR seems to think that is reasonable, disagreeing by only the odd £1 million and saying £27 million should be the outlay.

And the ORR agrees big money is needed for the East Coast Main Line, which is forecast to see 40 per cent more passengers by 2016.

The line provides a key long- distance route from London to Scotland via Peterborough, as well as serving a number of commuter routes, but is notorious for problems with its overhead power lines.

The ORR has shaved £5 million off Network Rail's intended spending on improvements to the electricity supply, but there is still £30 million in the programme.

Closing level crossings on the line will get £19 million rather than the £20 million Network Rail had wanted.

But more significantly, hopes of shunting slow freight trains away from passenger services by running a "joint line" through Spalding should get £233 million, the ORR says – not far off Network Rail's intended £248 million.

ORR chief executive, Bill Emery, said: "We have carefully reviewed Network Rail's plans and produced determinations that are challenging and achievable.

"We will monitor Network Rail's progress in delivering all of its obligations and the improvements required."