Work is currently underway on removing 7,500t of concrete from the car park beside Birmingham's New Street station as work continues on the project which has, so far, survived the bonfire of public projects.
Network Rail's New Street Gateway project is due for completion by 2015 and will provide a modern station in place of the hopelessly dysfunctional 1960s structure.
Visiting the site, New Street Gateway Funders Board chair, Birmingham City Council leader Mike Whitby said it was great news that work is continuing.
"I am delighted that George Osborne has recognised the strategic importance of the scheme and reiterated the Government's support for a project that is not only significant regionally and nationally but is also a statement about how Britain values good public transport infrastructure," he said.
The space created by removing the car park will create a new station concourse and this will be followed by work to redevelop the old concourse.
"The thousands of people using New Street station each day would have a real shock if they saw the scale of work going on just a few yards away behind the scenes," said Centro vice chairman Christine Mills.
"It's certainly exciting to see so much activity on a project that will ultimately give passengers the sort of iconic, 21st century station they need and deserve."
