Devon County Council looks set to scrap a bus lane scheme for Milber and Aller Park that was due to form part of the Kingskerswell bypass project.

Its removal will please angry residents and cut costs from the £108 million road, which the government has said is too expensive.

With £6 million saved by axing the Addison Road/Pinewood Road scheme and a further £5 million lost after 'clarification' on VAT, the cost has fallen to £97 million. Work is now under way within the council to prepare a 'major scheme bid' to enhance its chances.

Cllr Gordon Hook represents the wards and said he was 'euphoric' at the news. 'It's what I've campaigned for throughout the past 12 months as it would have decimated the lives of around 100 residents. Now the tax payer has saved millions, too. It's a win-win situation,' he said.

Addison Road resident Ian Howes also welcomed the turnaround, but said he was not surprised. 'The county had not looked at it properly. How can you send a 9ft-wide double decker up Pinewood Road which is only 14ft wide?' he said.

Mr Howes also wondered about the £6 million saving. 'Who knows? In my dealings with the county it's just guesswork most of the time. I've found mistakes on the one bit of the plan I was interested in and I wouldn't be surprised if other people found more,' he said.

The council will talk with bus operators about improving services to the estates, although the existing bus stops on Torquay Road which serve Milber will go.

The revised plan will go before the council's executive next Tuesday when environment director Ed Chorlton will also recommend compulsory purchase orders associated with the bypass. Protest group Kingskerswell Alliance has rejected claims the road will improve air quality and vice-chairman Ken Pegdon has slammed what he says is the £55,000 cost of a new survey. They have already been told by the government that they are unlikely to receive funding for this scheme as it is considered too expensive,' he said. 'This smacks of throwing good money after bad.' Kingskerswell resident, Cllr John Hartley, is also concerned and submitted seven questions to the executive. He has asked why no public consultation was ever held following the publication of a 2002 study which said the road could open up land for development. A public exhibition about the revised plans is to be held at St Luke's Church Hall on June 17.