Exmouth is facing a tense wait to see if it will secure nearly £16 million of funding that would pay for improvements to a major route on the outskirts of the town, as the new government decides which infrastructure projects to postpone or cancel.

Chancellor Rachel Reeves announced this week that she would be reviewing projects across the country to plug what she described as a roughly £20 billion hole in the public finances.

Before the general election, Exmouth had secured nearly £16 million from the Levelling Up fund, with an extra £1.7 million combined from the county, district and town councils, part of which was aimed at creating 830 metres of new carriageway to connect the north and east of Exmouth with the A376 (the main Exeter to Exmouth road).

It is hoped that this will shift traffic from local residential roads and away from the town centre and schools and cut bus journey times.

But with Ms Reeves’ announcement, projects across the nation now face uncertainty about whether previously allocated funding will materialise.

Devon County Council said the source of the funding provided it with some optimism, but it is still awaiting confirmation.

In a statement it said: “The Destination Exmouth scheme is being funded through the Ministry of Housing, Communities and Local Government, and we are yet to receive any news on the project funding.”

There was already some uncertainty about some of the funding before the  election.

Roughly £4.4 million of it was due to go to a scheme called Exmouth Gateway, which would have filled in a subway near the town’s railway station, improved parking for cyclists and cycle lanes, widened pavements and provided better bus stop facilities.

But some Exmouth residents objected to the subway work, despite lower use since a pedestrian crossing was installed before the pandemic. The county council has asked the government if it could move the Gateway funding to the Dinan Way scheme.

Although Exmouth is not part of his constituency, Honiton and Sidmouth Lib Dem MP Richard Foord MP said this funding could end up simply being rolled into the Dinan Way scheme to cover increased costs rather than providing extra amenities.

But in May Devon County Council said its discussions with the government would include possible ‘active travel’ improvements around Dinan Way – by which they mean cycling and walking.  Other sources close to the negotiations backed this suggestion.

But the election, which was called that month, is likely to have hindered progress.

A Devon County Council spokesperson said at the time: “The decision not to proceed with the Exmouth Gateway scheme was based on public feedback, and we couldn’t continue with the scheme without the support of the local community.

“We can now formally explore options with the DfT, including whether we can use remaining Levelling Up funds on delivering wider active travel benefits in the Dinan Way vicinity.”