Additional funding of £71.5 million has been approved for Gloucestershire County Council's M5 Junction 10 Improvements Scheme, this January 2026.
It means the project, which will unlock access to key development sites across Cheltenham, can now move ahead to its main construction phase.
Now estimated to cost £363 million, the scheme will provide access in all directions on and off the motorway to the north west of Cheltenham, along with a new link road connecting the A4019 to the B4634 and the widening of the A4019 Tewkesbury Road.
The council says the improvements will enable the delivery of over 20,000 new homes, including the 4,115-home Elms Park development; and support Cheltenham's £1 billion Golden Valley development, which will see around 12,000 skilled jobs created for local people.
Funded by the UK Government’s Housing Infrastructure Fund, along with district council infrastructure levy and developer contributions, this latest investment – together with an additional £40 million from the council – plugs a funding gap of £110 million for the project that was caused by rising costs.
Led by the council in collaboration with National Highways and other partners, site preparation works began in autumn 2025. With the funding now in place, delivery arrangements can now be finalised ready for the start of the main construction phase to begin in autumn 2026.
Julian Tooke, cabinet member for business, economic development, planning and infrastructure, said: 'Securing this additional government funding is a turning point for Gloucestershire.
'The delivery of the M5 Junction 10 Improvements Scheme is a catalyst for transformational growth and opportunity in the region, driving future investment and prosperity.'
Cheltenham MP, Max Wilkinson, added: 'The upgrade of this junction will support thousands of new jobs in cyber and tech at the landmark west Cheltenham Golden Valley development.
'After a lot of campaigning work in parliament and by the local business community, I’m pleased and very relieved to have heard the good news that ministers have done the right thing by closing the funding gap.
'I hope we can now get on with delivering the prosperity Cheltenham has been promised for so long.'
