The Transport Secretary’s decision gives Lincolnshire County Council powers to begin construction early next year, completing the city’s full ring road and easing congestion on the A46 corridor.
Balfour Beatty is expected to deliver the main works once the council formally signs off the appointment in early 2026.
Cllr Michael Cheyne, executive member for highways, said: “This is fantastic news for the North Hykeham Relief Road project and the people of Lincolnshire, since it means we’re one step closer to starting construction early next year as planned.”
He added: “Now that we’ve been given the all clear by Government to move forward, the next step is to officially appoint a contractor. This will be a topic of discussion at our Highways and Transport Scrutiny Committee meeting in December, and then voted on by Executive in early January.”
The £200m scheme will create a new dual carriageway linking the A46 Pennells Roundabout to the recently completed Lincoln Eastern Bypass.
The works will include new roundabouts at South Hykeham Road, Brant Road and Grantham Road, along with new bridges at Station Road and over the River Witham.
