Keith Hill, in full electioneering mode, said:'This light rail scheme will reduce traffic congestion, improve access to the Gosport and Portsmouth peninsulas, and boost the regeneration of those areas. The project will be a good example of the accessible, integrated and environmentally sound light rail systems which we promised in our 10-Year Plan for Transport.'

This scheme is the first phase of proposals for improving public transport in South Hampshire by providing an integrated network of light rail, heavy rail and bus services.

The nine mile long, electronically powered system will use disused railway lines for much of the route between Fareham and Gosport and will run through the streets in the town centres of Fareham, Gosport and Portsmouth. It will cross Portsmouth Harbour by way of a new immersed tube tunnel. The decision clears the way for the local councils to begin the process of appointing an operator.