As work is already progressing well on the multi-million pound relief road, the city council has used emergency powers to rush though the payment to Persimmon Homes, the company behind the project.

The housebuilding company was controversially granted planning permission for a development of 1,500 homes in Stanground on condition that it pays for and builds the bypass, and work started last year.

But with massive developments such as the Magna Park warehouse and freight terminal planned for the area, which will create thousands of jobs, the council has decided to release funding to Persimmon Homes – up to £1 million – to pay for essential, additional structural works on the road.

If the structural improvements were not carried out now, it was felt that it would only lead to increased maintenance costs and disruption in the near future, and the costs would be borne by the council anyway.

Deputy chief executive Ben Ticehurst, pressing for the agreement with Persimmon Homes to be authorised to support the future growth of the city, said: “The additional works are required to facilitate future growth in the sub-region and it is expedient to secure the best value by securing the current developer to complete the additional work at the present time.

“This will ensure that economies will be gained from the contractors who are already on site.

“Due to the progress of the works it is critical that the agreement is entered into without delay to ensure that the developer and the council secures the best price for the additional works.

“Failure to secure the contract for the additional works at the present time would lead to the loss of opportunity to invest in highway improvements at the best possible price.”