Improvements to Luton town centre road networks will start in June, as plans were given final government approvement on Thursday (March 28).
The Town Centre Transport Scheme will see a link road constructed around Crawley Green Road, and the £24.1m project could be completed by summer 2014.
Local Transport Minister Norman Baker approved £15.9m worth of funding from the government, and the remaining £8.14m will come from third party contributions and savings on land, design and construction costs.
Colin Chick, the Council’s corporate director for environment and regeneration, said: “The Council is delighted that its bid for funding has been accepted by the Government. We have been working hard for more than nine years to get to this point and this is fantastic news.
“Not only will completion of the inner ring road help reduce peak period congestion in and around the town centre but it will also improve access for pedestrians and cyclists, and free up land for continued regeneration, creating new jobs and homes to boost the economy in Luton.”
Mr Chick said the scheme could help attract a £1.5bn investment package to Luton, delivering around 6,000 new jobs and 2,600 new homes.
He also said the plans being approved also improves chances of other projects such as Power Court, High Town Village and athe Station Gateway being completed.
The scheme will provide a new two-way single carriageway ‘Gateway Link’ road running from the junction of Hucklesby Way and Old Bedford Road as far as a new signal-controlled junction with Church Street and Hitchin Road.
This section of the route runs between Midland Road and the railway line and passes under the station multi-storey car park.
The route then continues into Crescent Road to another new signalled-controlled junction with Crawley Green Road, and from there the next section will be made dual carriageway as far as St Mary’s roundabout.
The scheme includes two new bridges, to cross the mainline railway and the Luton Dunstable Busway, and also a shared cycle/pedestrian route.
A new access road will run from Gillam Street to serve Midland Road while Guildford Street will be closed to through traffic to enable an improved pedestrian connection between the new railway-bus interchange and the town centre via a proposed new public square.
Mr Baker said: “This important scheme will help to reduce congestion on the town centre road network and help regenerate the town encouraging economic growth and inward investment.
“It will improve public transport facilities and improve accessibility for pedestrians and cyclists.
“The £15.9 million we are putting into this scheme shows that the Coalition Government is serious about investing in the infrastructure the country needs to drive economic growth.”
The Luton town centre scheme was one of those given funding approval in December 2011 as part of the Spending Review process.