By Julian Whittle

Last updated at 10:08, Saturday, 06 December 2008

The Government has stepped in with £4.2m to ensure that work on Carlisle’s western bypass keeps motoring.

The Carlisle Northern Development route through Kingmoor Park

Construction of the five-mile Carlisle Northern Development Route is due to start next year but is threatened by the credit crunch.

Franco-Belgian bank Dexia had been lined up to provide up to £142.8m under the Government’s private finance initiative (PFI).

But the bank narrowly escaped collapse this autumn and is no longer in a position to lend the money.

Contractor Balfour Beatty has started talks with 12 banks, including Dexia, which will look at providing the cash in the new year.

The £4.2m of Government money will allow Cumbria County Council to continue preparations while talks on the PFI package continue.

Lord Andrew Adonis, Minister of State for Transport, stressed the Government was right behind the scheme.

Speaking at the opening of the M6’s Cumberland Gap extension, he said: “We are looking at it very seriously and urgently.”

First published at 09:03, Saturday, 06 December 2008
Published by http://www.newsandstar.co.uk