The government has confirmed more than £110 million in funding for the North Hykeham Relief Road in Lincolnshire, a dual carriageway connecting the A46 and A15 near Lincoln.
Construction is due to begin in March 2026, with completion expected in May 2029. The project, first proposed in the mid-2000s, will be delivered by Balfour Beatty.
Lincolnshire County Council says the road will unlock land for 4,500 new homes and seven hectares of employment space, and is projected to generate £800 million in economic benefits for the county over the next 60 years.
Roads and Buses Minister Simon Lightwood said the investment would "mean faster journeys and less congestion," adding that the government is "putting our money where our mouth is."
Cllr Sean Matthews, Leader of Lincolnshire County Council, described it as "a huge milestone," saying the road would open up significant economic opportunities once complete.
Simon Beardsley, Chief Executive of Lincolnshire Chamber of Commerce, called the project "a truly exciting milestone," citing improvements to connectivity and long-term growth for local businesses.
The scheme will also include dedicated cycling and walking infrastructure alongside the new carriageway.