More than 6,000 new homes are planned as part of the Lincolnshire Lakes development by 2028 but it depends on a reconfiguration of the local trunk road network.
The scheme involves creating a new roundabout around a mile from where the M181 meets the M180, providing access to the new homes. Without government investment, the development would not be viable.
A detailed design of the motorway scheme will be completed later this year with construction due to start early next year.
Highways England’s growth & housing fund is providing £8.6m for the project. This is the second time the fund has been used since it was set up earlier this year as part of the government’s 2015 Road Investment Strategy. North Lincolnshire Council is stumping up the other £4.7m using developer contributions.
Highways England chief executive Jim O’Sullivan said: “The £100m growth and housing fund is a key means by which Highways England is strengthening its contribution to local communities and economies, and I am delighted we have been able to make this significant award.
“The Lincolnshire Lakes project will unlock the development of two strategic sites, directly enabling the delivery of thousands of jobs and homes over the next 12 years. This is a good example of Highways England working with local partners and developers to provide road improvements, value for money and economic growth.”
North Lincolnshire Council leader Liz Redfern said: "This marks yet another milestone in this huge development – the largest housing regeneration scheme in the North of England. Developers Lucent Fund and Maltgrade have now received the go-ahead for the two largest phases of the scheme and we have yet to receive further applications for the remaining homes that will complete the development. Besides new homes, there'll be new schools, pubs, restaurants, lakes, sport and leisure activities and community centres plus much more.”