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The Final Local Government Finance Settlement is now confirmed. Our updated analysis examines the implications for rural areas. Read more.

The government has confirmed more than £110 million in funding for the North Hykeham Relief Road, a new dual carriageway scheme intended to improve transport links around Lincoln and parts of Lincolnshire.
The funding announcement, made on 18 February 2026 by the Department for Transport, supports construction of a new link road between the A46 and A15. The scheme is expected to support the delivery of around 4,500 new homes and 7 hectares of employment land in the Lincoln area.
Construction is scheduled to begin in March 2026, with completion expected by May 2029. First proposed in the mid-2000s, the relief road has been in development for several years.
The Department for Transport states that the road is intended to reduce congestion, improve journey times into Lincoln and enhance road safety. Provision for walking and cycling is also included within the scheme.
Lincolnshire County Council has said the project will improve access to employment by strengthening connections into the city and reducing congestion in surrounding villages. The council estimates the scheme could generate up to £800 million in economic benefits over a 60-year period, based on its own modelling.
The North Hykeham Relief Road forms part of the wider Lincoln ring road network and is one of several infrastructure projects aimed at supporting planned growth in the area.
Transport infrastructure plays an important role in ensuring that every person, in every place can access employment, education, healthcare and other essential services. In rural and semi-rural areas, where settlements are more dispersed and public transport options are often limited, road connectivity can be a key factor in enabling economic participation and supporting local labour markets.
The Rural Services Network consistently makes the case that infrastructure investment is most effective when it forms part of a joined-up approach to economic growth, linking transport with housing, employment land, digital connectivity and public services. The Delivering for All roadmap stresses that growth in rural and market-town areas needs to be supported by appropriate infrastructure if it is to be sustainable and benefit both existing communities and new development.
As work on the North Hykeham Relief Road progresses, its longer-term impact on surrounding rural communities, access to jobs, and the balance between growth and service provision will be an important consideration in assessing how effectively the scheme contributes to wider regional prosperity.