The cash will be used to dual an existing single lane carriageway to support future growth north of Peterborough as well as funding a study into further dualling to the northern end of Peterborough, which will help to define the growth potential in the area.
This award takes the total GAF2 capital funding for Peterborough to over £14 million. This is in addition to around £10 million previously awarded through the first round of GAF.
The investment follows the Government's plans announced in December to help future generations of home buyers get a foot on the housing ladder by increasing the supply of new homes.
Peterborough City Council Leader, Councillor John Peach said:
"This is great news for Peterborough. The dualling of this section of Paston Parkway will help cope with traffic growth from proposed housing developments and discourage 'rat-running' by traffic approaching the city from the north.
"This growth area grant makes a further valuable contribution towards Peterborough's aspirations for significant expansion in both homes and jobs under the government's sustainable communities policy."
