The funding is for the MetroWest Phase 1 project, which includes reopening the branch line that has been dormant for 55 years since its closure in 1964 under Dr Beeching’s cuts.

Next steps are expected to see a submission for a Development Consent Order to the Government in July.

“The Portishead Rail scheme is a nationally significant project that will open up the rail network to thousands of people across the region and will help relieve congestion during the rush hour periods,” commented North Somerset Council’s head of transport and infrastructure Colin Medus.

The council is leading the project alongside the West of England Combined Authority, on behalf of South Gloucestershire, Bristol City and Bath & North East Somerset councils.

He added: “This Government funding is the news we have been waiting for. MetroWest Phase 1 is firmly on track for delivering rail services fit for the future of our region.”

The total cost of MetroWest Phase 1, which includes a new rail station at Portishead and the reopening of a former station at Pill along the old line, is estimated at £116M. It is hoped that passenger services will be reintroduced by 2021.

The scheme also involves enhancements to local passenger train services on the Severn Beach and Bath to Bristol lines. A previous bid for funding was rejected by the Department for Transport last year.

The Portishead Railway Group has been campaigning for 19 years to reopen the Portishead line to passengers. Its chair Alan Matthews said: “Only in the last few years has there been a will from national Governments to see rail rather than bus as an economical and quick fix for local transport problems.”

He described the recent announcement as “brilliant news” which means the project is now fully funded. “Our next job is to organise the opening ceremony!”

Campaign group Railfuture spokesman Bruce Williamson said: “It’s great that the final piece of the jigsaw is in place and now it should be all systems go for this scheme. It’s desperately needed, as the road from Portishead is gridlocked every day, and the rail alternative will provide a faster more attractive way for commuters to get into Bristol, even in its initial slimmed down form.

“We will continue to push for further investment to increase the speed and frequency of the service, and for further investment in the Bristol area.”

West of England Mayor Tim Bowles said: “This is excellent news for the region as we continue to work on our ambitious MetroWest rail plan which will help build a transport network that works for everyone. I’m delighted that with the support of the Secretary of State, we can make this long awaited project a reality.”

MetroWest Phase 2 proposes to reopen the Henbury Loop Line – which links the Severn Brach Line via Avonmouth with the South Wales Main Line at Filton – to an hourly spur passenger service. The route is currently used only for freight.

(Photograph: Network Rail)