A group of peers has warned of the risk that high speed rail improvements in the north of England may be "sacrificed" to keep costs down.

The House of Lords Economic Affairs Committee has released a report highlighting concerns High Speed 2 will not be built within its current budget.

The report warns that the first phase of the project, between London and Birmingham, will bring "little benefit" to the north of England.

It also raises concerns that the second phase, which reaches into the north of England may not be realised if the cost of the firs phase spirals.

With a budget of £55.7bn, the report concludes that the project should not go ahead without a new analysis of the benefits HS2 will bring.

The House of Lords committee recommends that the Northern Powerhouse Rail scheme, which aims to improve rail connections between cities in the north of England, should be completed alongside HS2, rather than waiting until the mid 2020s.

However, a Department for Transport spokeswoman told the BBC this morning that the government is committed to bringing rail improvements to both the north and south of England, and that the full benefits of the Northern Powerhouse Rail scheme rely on the completion of HS2.

"By 2020, the government will have invested a record £13bn in transport across the North, and we have a clear plan for linking the Midlands and the North through HS2 and Northern Powerhouse Rail - the full benefits of which can only be delivered on the back of HS2," the spokeswoman said.

"We are clear we want both."