THE government is sticking with its approval of £107.8 million in the Regional Funding Allocation for the Kingskerswell bypass scheme which it allotted some time ago.

Supporters of the £120-130 million scheme feared the funding might fall by the wayside because of the credit crunch, but it stands its ground.

Torbay's deputy mayor, Chris Lewis, said the funding had always been there and, despite the difficult times, the government had not axed any money from its transport schemes.

'It was always the fear that the government would take it out. Everything is still on board for getting entry level. Hopefully in the new year the minister will sign it off,' he said.

That depends on the outcome of the public inquiry into compulsory purchase orders and road closures for the 5.5 kilometres bypass route, which earlier this month heard ten days of evidence – for and against – at the Passage House Hotel, Kingsteignton.

'Provided the result of the inquiry goes our way, it is good news for Torbay.

'It is what we desperately need. We have been waiting since the 1950s.

'Torbay is one of the main tourist areas in the south west. People have choices of where to go on holiday and those coming for short term breaks do not want to spend their time in traffic jams,' said Cllr Lewis.

Another who was delighted was Teignbridge Council Executive member and Kingskerswell parish councillor Mike Haines.

'It was one of the things remaining to make sure the funding was in place. I previously wrote to the minister saying how important the bypass was.

'The only issue now is to hear the outcome of the public inquiry and, if that is in favour, preparatory work could start next Easter,' said Cllr Haines.

Devon County Council's chief engineer, Paul Ewings, said they had asked the government for £107.8 million and the announcement that that funding was in place was in line with their request.

'The remainder of the funding will come jointly from the county council and Torbay Council, assuming the project receives the approval to go ahead,' said Mr Ewings.

Ken Pegden, chairman of the Kingskerswell Alliance, which opposed the scheme at the inquiry, said the Alliance understood the money had not yet been agreed and much had yet to be settled.

'There is the need to consider the legally binding and challenging carbon targets when judging road schemes and the need to consider costs in the current economic climate.

'It seems to us odd that the proposal is considered to have been given the green light just days after the public inquiry was adjourned until October in order that the new CPOs can be considered.

'From my discussion with the Department for Transport, it would appear to agree.

'It has informed me that its response does not mean ministers have taken a decision on whether or not to grant initial funding approval (Programme Entry) for the South Devon Link Road.

'On this basis we do not expect a decision to be taken on the proposed scheme until after the inspector's report has been received and ministers have considered the report and made a decision on whether or not to confirm the orders,' said Mr Pegden.