The rail journey between Inverness and Edinburgh is to be cut by 35 minutes and the A9 is likely to be made a dual carriageway under plans to boost business in the Highlands.

Alex Salmond, the First Minister, said yesterday that an upgrade of the rail line would reduce the journey time to 2 hours 45 minutes. “The faster train journey will undoubtedly attract even more visitors and businesses to the area,” he said.

The details of the plan will be announced as part of the Scottish Government's transport review, which is expected to be published next month. The cost of upgrading the rail line is estimated to be £55million.

Mr Salmond indicated that the SNP would fulfil its manifesto promise to make the A9 between Perth and Inverness a dual carriageway. Recent deaths on the stretch of road have put pressure on the SNP to set out a timetable for upgrading it.

Mr Salmond was speaking after a meeting of the Scottish Cabinet in Inverness Town House. Ministers met in the same room that hosted the only gathering of a government Cabinet outside London. David Lloyd George brought his ministers together at the Town House in September 1921.

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