Westmorland and Furness Council has expressed disappointment in the government's decision that the Kendal Northern Access Route will not be part of its road and rail investment programme.
Councillor Peter Thornton, Cabinet Member for Highways and ICT, said the decision was extremely disappointing but the KNAR remained as a long term aspiration for the administration.
He said: "The Northern Access Route, or Relief Road, would have strengthened the resilience of our transport network in Kendal, especially whenever traffic is diverted off the M6 and through Kendal. But it would also have brought massive improvements to Kendal by reducing congestion and improving air quality in a historic town where dealing with modern traffic volumes is a challenge.
"We have asked to meet with the Department of Transport to challenge the reasons for the decision. We note that the minister said that this decision does not prevent the scheme from being considered in the future.
"Moving forward, we are continually working to maintain Westmorland and Furness's vibrant economy by developing reliable and resilient transport networks of all kinds, and projects such as Grizebeck, the A66 dualling, supporting bus services and Active Travel schemes are vital to our success. We remain committed to working with partners such as Kendal Futures to find ways to improve resilience in Kendal's transport network."
The proposed single carriageway road to the north of Kendal, connecting the A591 and the A6, would have reduced congestion in the town centre, improved air quality and supported economic growth by providing new access to employment areas. It would also have improved the resilience of the highway network, particularly when M6 is closed and diverted traffic through the town causes significant congestion.