Transport Minister <name>Norman Baker</name> announced the sum, and stressed the Government’s commitment to the scheme: “There is no doubt about finance being available to deliver the scheme. The Government is committed to a trial of tram-trains in the UK and the route between Sheffield and Rotherham is the best place to develop it. This is a unique scheme.

"Tram-trains offer passengers travelling from rural and suburban areas into city centres a viable, environmentally sound alternative to short and medium car commuting that can cut congestion and reduce overcrowding at railway stations.

“These sorts of rail fleets are already in use on the continent, but this is a first for the UK. The funding we are providing for this exciting project represents a real chance for us to test whether they can be adapted successfully for South Yorkshire and the rest of the UK."

<name>David Brown</name>, director of SYPTE, added: “We have done an awful lot of work on the plans so far and further efforts will look at ensuring the vehicles are compatible with both types of network, which are the same gauge.”

If further investigations are successful, the system could be up and running by 2014.