HOPES of a major economic boost to York through plans to create a new Great British Railways may be in jeopardy, according to reports.

York fought off stiff competition from 41 other British cities to become one of six shortlisted contenders to be the headquarters of a new single public body which would be responsible for the railway sector.

It has been estimated that hosting the HQ would add £110 million to the city’s economy and create 1,600 new jobs.

But now national news outlets are reporting that the whole GBR project is in danger of being scrapped under the new Prime Minister Liz Truss.

The Guardian has suggested that the plan is 'dead' and the i has reported that insiders working on the project believe it will be axed.

It said a Whitehall source had said that work had slowed down significantly since Ms Truss entered No 10, leading to fears over its future amid a bonfire of other Boris Johnson-era policies.

Another claimed the project had been all but halted, with the anticipation within the Department for Transport being that it will be canned.

The i said a Department for Transport spokesman had declined to comment on the project specifically, saying instead that the Government was committed to reforming the railways, improving journeys for passengers and creating a better and more modern UK rail industry.