A BID for £25million to fund a vital transport scheme in Hampshire will be submitted to the government after county leaders cobbled together a financial deal.

The Stubbington Bypass could be given the green light by the end of the year after council chiefs said they had "every expectation" the government cash would be approved in the chancellor's Autumn Statement.

In order for the scheme to be submitted £8.5million needed to be secured amongst local councils.

Yesterday it was revealed that Hampshire County Council will pay the full sum upfront, recouping it through business rates from the Daedalus enterprise zone.

With that funding in place the Solent Local Enterprise partnership is now able submit the bid to government as a priority project.

Fareham Borough Council executive leader Cllr Sean Woodward said: "It has been three years of solid work to get to this point. Stubbington will be free of the gridlock which it suffers from from first thing in the morning and again in the evening."

Hampshire County Council leader Cllr Roy Perry added: "Making this scheme a reality demonstrates the county council's willingness to act, using its expertise and capacity to deliver a scheme which will benefit local people and businesses in the Gosport and Fareham areas. This illustrates the scale of investment Hampshire County Council is making into improving the transport infrastructure in South Hampshire."

Gosport MP Caroline Dinenage, whose constituency covers Stubbington, welcomed the development.

She said: "A new peninsular access route is utterly essential for addressing the area's crippling congestion problems and would vastly improve both the lives of local residents and the prospects for local businesses. This sends a clear message to the government about how seriously both the council and other local stakeholders are about investing in the future prosperity of Gosport and Stubbington."

Planning permission for the scheme was approved in 2015.

The proposed Stubbington Bypass comprises of a 3.5-kilometre road to the south of Fareham and the north-west of Stubbington, designed to ease local traffic problems and support long-term plans for regeneration and economic development, including improved access to the enterprise zone at the former HMS Daedalus.

It will provide a connection from Titchfield Road to Gosport Road with additional improvements to the existing sections of the B334 at Titchfield Road at its northern end and Gosport Road at the southern end.