More than £16 million has been shaved from the cost of the proposed Kingskerswell bypass, bringing the bill down to a predicted £108 million.

The savings have come from 'streamlining' junctions and slip roads, proposing a constant speed limit and deferring 'more minor' aspects.

Those include rail bridges at Aller and Edginswell junctions, less ambitious plans for the Kerswell Garden and Edginswell junctions and only a single carriageway at Hamlyn Way. Some street lights have also been left out.

Devon County Council and Torbay Council have also agreed to increase their share of the bill from £12.5 million to £33 million.

The two authorities hope that now the government has only to put a reduced amount of £75million into the scheme that that is enough of an incentive to secure Whitehall's backing.

A new business case for the road, officially the South Devon Link Road, has been submitted after last year's decision by transport minister Philip Hammond not to provide funding.

He said the cost outweighed the benefits.

Now Devon and Torbay, which have also agreed to underwrite the £5 million it has already cost to draw up the scheme, are waiting to hear if the scheme will be approved.

Cllr Stuart Hughes, Devon's highways supremo, said: 'It is clear from the research that this road will create substantial benefits. For every pound spent we will save £9 in benefits, so that is a very significant gain for everyone.'

Torbay mayor Nick Bye said: 'We are very pleased by the support that the community has shown for the project, plenty of people have been writing into the minister to show how the scheme will bring benefits for business, residents and visitors alike.

'I would encourage everyone to make their voices heard, this is a real chance to create a positive change for Torbay and help generate new jobs, new opportunities and improve the quality of life for everyone living alongside the old road.'

The revised scheme can be viewed at http://www.devon.gov.uk">www.devon.gov.uk.

The Department for Transport is expected to make its decision by the end of the month.