A major milestone has been reached in the multi-million pound development of the long-awaited Carlisle Southern Link Road, boosting plans to create a new 10,000-home garden village.

The project to create the road took a step forward as Carlisle City Council’s executive voted unanimously to enter an agreement with Homes England, alongside Cumbria County Council, to move closer to the release of £102m of grant funding towards the road.

As part of the agreement, the county council would be responsible for building the road, while a separate agreement means both councils would contribute £5m towards the project, which they would hope to recoup during the development.

The creation of the road is linked to the St Cuthbert’s Garden Village scheme, which would consist of up to 10,325 homes being built on the southern edge of the city.

At the virtual meeting of the city council’s executive on Wednesday, Councillor Paul Nedved, the portfolio holder for economy, enterprise and housing, said: “This Carlisle Southern Link Road will bring significant benefits for Carlisle and the county with £102m from the Government’s Housing Infrastructure Fund.

“The road scheme will reduce congestion through Carlisle, building new infrastructure that will support St Cuthbert’s Garden Village, and help the city’s growth with economic and substantial social benefits.

“This is a very substantive document; a critical one for the city and the progression of this relief road.”

Councillor Nigel Christian added: “This is a really important milestone in the Southern Link Road and the garden village, and I think when you read the reports they’re fascinating.

“It shows that the project is gathering pace and how much work has gone into them already.”

Speaking after the meeting, Mr Nedved expanded on his comments and said the executive approving this agreement should give the Government “confidence” that they could release that money for the project to progress.

He added: “It is another part of the change that the city is going through with the Borderlands Inclusive Growth Deal programme, the Future High Streets Fund, Town Deals Fund and the redevelopment of The Pools.

“I don’t think we’ve ever had a generation where we’ve had so much support and confidence in the city from central government.

“What we want to do is generate growth and jobs for the city and county.

“It also sort of balances out the city, where there has been an enormous amount of development to the north of Carlisle.”

It is hoped that the new road would also improve links between Carlisle and the west and east of the county.

A masterplan for St Cuthbert’s Garden Village is still being drawn together, following a number of design options that went before the public in a consultation in September last year.

The garden village scheme was awarded an extra £320,000 from the Ministry of Housing, Communities and Local Government earlier this year for the development after a successful bid from the city council.

Originally known as Carlisle South, the planned development was included in the Government’s garden villages, towns and cities programme in January 2017.

The plans have previously been backed by Carlisle MP John Stevenson.