Roads around a Cumbrian town could be set for a £3 million upgrade to cope with a predicted housing boom.

An application has been submitted for Government cash to provide transport links to meet an expected demand for new homes.

Cumbria County Council and Eden council has asked for £3,116,800 from a funding source known as the “growth deal”. The total cost of the work is expected to reach £3,896,000, with the shortfall made up of contributions from developers.

A report on the funding bid was submitted to Eden council this week.

It states: “The award of this significant sum of funding into Eden would enable essential infrastructure improvements to take place.”

This, it adds, would ensure growth outlined in the area’s local plan could happen – and paved the way for an employment boost.

If successful, the report says, work would start this year and be completed by 2021.

The report says the roads around Penrith need upgrading to meet a demand for new homes.

It is estimated that 1,544 homes will be built in the Eden town between 2014 and 2032.

The funding would be used to provide improvements to key locations on the highways, walking, cycling and public transport network.

The largest amount of cash – £1,182,000 – would be spent on the A6. The report says: “The A6 forms the main high street in Penrith town centre as well as a through route for the town.

“This means the route is heavily-trafficked with both local and through traffic, combined with pedestrian demand on both sides of the road due to shopping, leisure as well as access to residential areas.

The second-highest amount of cash – £952,000 – would be spent on improving pavements and the set-up for pedestrians.

More than £830,000 would be spent on improving congestion at junction 40 of the M6 – the main roundabout into Penrith.

Pedestrian and cycling links from the Gilwilly Industrial Estate into the town would also be improved.

Councillors studied the report at the Eden meeting.

Both councils will find out on June 17 if their application has been successful.

They declined to comment until they know the outcome.