A NEW southern bypass WILL be built in Carlisle, with more than £100m of funding being announced today.

The major road scheme, which is crucial to the city's 10,000-home garden village, has secured the backing of the Government.

Despite tough competition for funding, Communities Secretary James Brokenshire confirmed that £102m has been allocated for the Southern Relief Road.

Five miles long, it will stretch from Junction 42 (Carlisle South) of the M6 to Peter Lane, in the west of the city. The road aims to ease congestion in the city and provide key transport links.

The money is coming from the Housing Infrastructure Fund, to deliver vital transport infrastructure and unlock the St Cuthbert’s Garden Village plan.

The rest of the money for the £112m road project will come from Carlisle City Council and Cumbria County Council.

The funding pledge comes the day after Housing Minister Kit Malthouse announced £300,000 of funding for the garden village.

Carlisle MP John Stevenson said it shows that the Government recognises Carlisle's significance to the wider economy.

"This is a game-changer. Carlisle has traditionally punched below its weight but that's all changing now," he said.

He said the city fought off competition from other parts of the UK, including schemes in southern England.

The Government says the investment is part of wider support for Cumbria, the Northern Powerhouse and rural economies across the Borderlands region.

Mr Brokenshire said: “There is no mission more important that making the housing market work and our £102m funding package will unlock up to 10,000 new homes in Cumbria, supporting local communities who are eager to build.

“By providing more money to housing associations to spend in the areas where it is most needed and investing in infrastructure, we are giving developers the tools they need to get building.”

“This funding package is part of our comprehensive plans to deliver 300,000 homes a year by the mid-2020s.”

Minister for the Northern Powerhouse, Jake Berry MP, added: “This is fantastic news for Cumbria which will empower the region to deliver good quality homes, and build more thriving communities.

“Thanks to over £100m of government investment, the people of Cumbria are set to have access to more homes, and better transport links – strengthening the Northern Powerhouse’s rapid growth and booming industry.”

Mr Stevenson described the announcement as "tremendous news" for Carlisle and the region.

“This is a hugely significant announcement which demonstrates the long-term vision for the Northern Powerhouse and Borderlands. The investment announced today will pave the way for thousands of new homes, improve access to the region from England and Scotland, and give businesses the confidence to invest in the area," he added.