Failure to upgrade a crucial rail junction just outside Norfolk will continue to hold back the region from fulfilling its potential, say business leaders.

James Palmer, chair of the recently-founded Eastern Powerhouse - a business-led organisation formed to drive investment in the region - has raised "grave concerns" over the future of the Ely Junction in Cambridgeshire.

Concerns have been raised that the long-awaited upgrade to that junction - which links five lines connecting Norwich, Ipswich, Cambridge, Peterborough and King’s Lynn - is on the brink of being scrapped.

The worries were triggered by a letter transport minister Wendy Morton sent to the East of England All Party Parliamentary Group, in which she said some projects will have to be “cancelled or indefinitely paused”.

Mr Palmer, former Cambridgeshire and Peterborough mayor, has written to transport secretary Grant Shapps, with what he described as "grave concerns" that there will not be investment in the junction.

Eastern Daily Press: Former transport secretary Grant ShappsFormer transport secretary Grant Shapps (Image: PA Wire/PA Images)

Describing it as "the most egregious rail bottleneck in the east of England", Mr Palmer said constriction at Ely North "negatively impacts on passenger and freight journeys from all parts of the east".

He said growth ambitions for the region were not possible given the current capacity issues at the junction.

He said: "The east of England is the fourth largest regional economy in the UK yet has an extremely poor rail service.

"This is unacceptable and must be dealt with, starting with Ely North, Soham to Ely and Haughley bottlenecks."

"The east has world leading industries and world class innovators.

"The economy of the east can and is leading the world in science, technology and green energy, it is time government recognised this potential and invested in the east of England.

"Ely North would be an appropriate place to start."

The East of England All Party Parliamentary Group, co-chaired by Waveney’s Conservative MP Peter Aldous, has also written to Mr Shapps to raise concerns.

The Department for Transport has said "difficult decisions" are needed to bring spending back to affordable levels and the pandemic has brought about "enormous change to the railways".

A spokeswoman said: "We understand the local interest in the Ely and Haughley junction projects and will publish an update on this shortly."