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Plans to build a road linking Heysham in Lancashire to the M6 have been given the go-ahead by the government.

The road, which will form a bypass to the north of Lancaster, is one of many projects nationally to be confirmed by Transport Secretary Philip Hammond.

The coalition government had previously said it could not give any assurances about funding the scheme.

However, Lancashire County Council has been asked to find ways to make savings on the project.

Councillor Tim Ashton, cabinet member for highways and transport, said: "This is great news. The M6 link is more than just a road - it will be an engine for economic growth for the whole of the region.

"Its construction will generate thousands of jobs and a six-fold return for every pound invested in it.

"The scheme enjoys widespread public support and will greatly improve access to the major port of Heysham and the rest of the peninsula."

He added: "I fully understand why the DfT is asking us to reduce the costs of the scheme within the wider context of the comprehensive spending review.

"We've already been looking at how we can save money on the scheme and I look forward to being able to finally agree funding with the DfT before the end of the year."

Mr Hammond gave the green light to 16 road improvement and public transport schemes in the House of Commons earlier, in addition to eight schemes announced by the chancellor last week.

However, ministers have axed a host of other road schemes and said rail fares would rise as overall transport funding is cut.