This is far below what it expected and almost £2.5bn less than it asked for.

The budget was confirmed today by the Office of Rail Regulation, which pointed out the figure was actually £200m above its draft determinations released over the summer.

Network Rail has since been lobbying the ORR to up its funding for the 2009-14 period, claiming the original proposed budget was "insufficient".

In a statement released today Network Rail said: "Continued high levels of investment in our railway network are to be welcomed but we must be sure that these clearly challenging targets and levels of investment set out today by the ORR are both achievable and adequate to meet the growing demands being placed on our railway."

The board has until February to accept or reject the final determination.

The ORR said that the major schemes already planned for the period would be affordable under the settlement.

These include connecting King's Cross into the Thameslink route in London, rebuilding Reading station and rebuilding Birmingham New Street station.

A new Glasgow Airport rail link and a new line from Airdrie to Bathgate in Scotland are also planned.