The British Government has identified £16 million to finance the electrification of the Oxenholme-Windermere railway through the Lake District.
Network Rail will now work on a detailed plan to the electrify the 10-mile branch line, which connects Oxenholme Lake District station on the West Coast main line with Windermere station, by 2017.
Baroness Kramer said: “Electrifying this key rail link will support the vital tourism industry in the area, and help us build a stronger economy in the Lake District and beyond.
“We are committed to building a world-class rail network. Over the next five years, more than £38 billion will be spent on improving and running the system, with schemes like this helping to provide better services for passengers across the UK.”