Wantage is set to receive nearly £8 million to provide an easy route from Mably Way to the Reading Road, east of the town.
The Wantage Eastern Link Road will connect the A338 to the A417 to avoid people travelling going through the town or along Charlton Village Road and passing the local primary school.
The total cost of building the road is expected to be around £15 million with the remainder of the money coming from developer contributions and other funding pots.
The Vale of White Horse District Council, Oxfordshire County Council and housing developers worked together to submit a bid late last year to request funds for new infrastructure in readiness for the new housing.
Housing Secretary Sajid Javid and Chancellor Philip Hammond announced yesterday that the joint bid was successful and Wantage will receive the money to support new homes being built at Crab Hill, adjacent to the new road, and Wellington Gate, on Grove Airfield site.
Councillor Matthew Barber, Leader of the Vale of White Horse District Council said, “We welcome the funding for the new link road. This route is an important part of our plan to help bring new homes to the Vale over the next 20 years.”
County Councillor Ian Hudspeth, Leader of Oxfordshire County Council, said, “This is fantastic news for Wantage and Oxfordshire. The funding will ensure infrastructure is provided at the early stage of development and provides better transport links between new housing and areas of employment.”
Other schemes in the county to receive funding were for a new tunnel under the railway in Bicester and regeneration plans for Blackbird Leys, Osney Mead and the Oxford Northern Gateway.
The county council is responsible for building and maintain roads throughout the county and plan to hope to start on the Wantage link road in 2019.
The projects announced for Oxfordshire are:
£6.7 million Howes Lane Tunnel – part of the North West Bicester Strategic Realignment of Howes Lane.
£3.75 million Blackbird Leys District Centre Regeneration Scheme.
£10 million Northern Gateway (knows as Oxford North).
£6.09 million Osney Mead Innovation Quarter.
£7.71 million Wantage Eastern Link Road.