Ivanhoe Line campaigners have welcomed the Government announcement that the re-opening of the route through Ashby - between Derby and Coalville - is part of a new package of East Midlands transport investment.

It was announced last month that the line would not run to Leicester due to the costs involved of building a new track from Coalville onwards.

But yesterday, Prime Minister Rishi Sunak announced that the Ivanhoe Line project is set to benefit from the scrapping of HS2 north of Birmingham.

That decision alone means that the north east leg of HS2 - set to run through North West Leicestershire from Birmingham to East Midlands Parkway - has also been binned.

The Prime Minister says that £9.6billion will now be allocated to transport in the East Midlands.

Included in the Government announcement yesterday was an update on the Ivanhoe Line.

It said: "Stations and lines closed under the 1960s Beeching reforms will be reopened, including the Ivanhoe Line between Leicester and Burton, connecting 250,000 people across South Derbyshire and North West Leicestershire, with new stations en route.

Ashby Station was closed in the 1960s and is now used as offices. Photo: Ashby Nub News

"We will ensure delivery by fully funding certain schemes in our popular Beeching reopening programme, to reopen closed lines and new stations on existing lines in the North, subject to approval of business cases.

"The Midlands will receive £9.6 billion alone – with £1.75 billion to deliver the Midlands Rail Hub in full, benefiting more than 50 stations and seven million people."

The statement appeared to be out of date, claiming that a link to Leicester would be part of the Ivanhoe Line project.

But campaigners say that leaves open the possibility that the Coalville to Leicester link can now be pushed for with new investment on the table.

Douglas McLay, of the Campaign to Reopen the Ivanhoe Line, reacted to the anouncement favourably.

He said: "This development is obviously helpful, but we will need to wait to see how things develop over the coming months.

"At the very least, it strengthens the already good probability that the Derby to Coalville section will go ahead.

"It also creates a new framework for the extension to Leicester to be authorised and funded.

"This would give us a target for our follow on Campaign.

"One helpful feature is that the announcement includes the development of a Midlands Rail Hub, which could well include the remodelling of the southern approach to Leicester Station.

"This would make the reconnection of the Ivanhoe Line into Leicester Station a realistic possibility."