A MULTI-million pound funding scheme has been unveiled today to upgrade a vital link between two Hampshire communities.

Newgate Lane is due to undergo an £8.5 million redevelopment to improve the traffic flow between Gosport district to Fareham.

A funding package has been agreed involving £4million from Hampshire County Council, a contribution from the Homes and Communities Agency and a loan making up the shortfall from the Solent Local Enterprise Partnership.

The work, starting in early 2014, will include widening to a dual carriageway between the Longfield and Speedfields junctions, segregated, shared cycleways and footways and traffic capacity enhancements at the Peel Common Junction.

The area's MP Caroline Dinenage said the investment would transform access to the Solent Enterprise Zone and improve traffic flow to and from the peninsula.

She added: “Transport infrastructure is such a major issue in our area, and I've fought since my election for improvements. The location of the Solent Enterprise Zone on the Daedalus site has confirmed the strategic importance of this road, and I'm delighted that everyone involved has worked together to secure this key investment.

“This multi-million pound package will significantly improve travel via Newgate Lane and will be a major boost for commuters, businesses and our local economy.”