Leeds station is set for its biggest transformation “in a generation” after the government confirmed a £200m funding boost, taking total investment in the scheme to more than £300m.

Announced in last week’s Budget, the funding will support a major upgrade of one of the North's busiest transport hubs, with works including a new central overbridge, three entrances, expanded concourse space and a longer platform 14.

The project is designed to tackle growing congestion at the station, which currently handles more than 27 million passengers a year and serves as the hub for the vast majority of rail services across West Yorkshire.

The Department for Transport said the investment will future-proof the station ahead of an expected surge in demand, with passenger numbers forecast to increase by almost 12 million annually by 2043.

Transport secretary Heidi Alexander described the investment as a major vote of confidence in Leeds and the wider North.

“Leeds station is the gateway to West Yorkshire, and this extra £200m investment will turn it into a station this city can be proud of, “she said.

The station improvements are due to be completed by 2030 and form a key part of wider plans to strengthen rail connectivity across the North.

The upgrade will help pave the way for the £11bn Transpennine Route Upgrade programme, which aims to increase passenger capacity by 30% while electrifying major routes across the region. It is also being positioned as a stepping stone towards Northern Powerhouse Rail, the long-planned programme intended to deliver faster and more frequent services between the North's major cities.

West Yorkshire mayor Tracy Brabin welcomed the announcement, describing Leeds station as the “beating heart” of the region's transport network.

“This investment will benefit passengers and businesses, help to unlock the capacity we need for future growth and create a gateway to West Yorkshire that reflects our ambition,” she said.

The announcement follows confirmation of a new station at Bradford Interchange and comes as ministers seek to accelerate delivery of major transport projects through the planned creation of Great British Railways.