The £120m project, which will link the A9 over the River Tay to the A93 and A94 north of Scone, aims to reduce congestion in Perth and open up sites for housing and economic development.

Included in the Tay Cities Region Deal, the Cross Tay Link Road is part of Perth & Kinross Council’s Perth Transport Futures plan. Sweco was appointed as design consultants for the project in July 2017. 

Ms Sturgeon today confirmed that £40m will be invested in the new road, while a further £10m will fund an industrial investment programme to support manufacturing businesses across the region - covering Dundee, Perth, Angus and the north of Fife.

The funding is in addition to the Scottish Government’s £150m commitment to the Tay Cities Region Deal and brings overall Scottish Government investment in the area to £200m over the next ten to 15 years.

The First Minister said: “Our further £50m investment in the Tay cities region will support transport infrastructure and manufacturing projects, benefiting people and businesses and ensuring the area continues to grow and thrive.

“As well opening up land for new housing and employment sites, the Cross Tay Link Road will reduce traffic congestion in and around Perth and improve the air quality in the city centre and Bridgend.

“The £10m industrial investment programme will help drive forward our ambitions to be a global manufacturing leader, creating opportunities for businesses right across the region.

“I am confident the Scottish Government’s overall investment of £200m in the Tay Cities region will improve people’s quality of life and encourage sustainable economic growth in the Tay area and Scotland as a whole.”

Councillor Murray Lyle, leader of Perth & Kinross Council, welcomed the announcement on behalf of the Tay Cities Deal partnership.

He said: “This is fantastic news for the Tay cities region. We welcome the introduction of an industrial strategy which will encourage innovation and inward investment and support sustainable skills development across the whole of the Tay cities region. This will in turn boost opportunities for strategic partnerships with businesses, contribute to the local, national and global economy and create prosperous communities.

“Working together, we can make the Tay cities region the best place in Scotland to start and grow a business and boost productivity with a skilled and committed workforce and high quality jobs.

“The news of funding for the Cross Tay Link Road is hugely welcome. This project supports the exciting expansion of Perth and Kinross, opening up new housing, industrial development and job creation in the beating heart of Scotland. As well as being a multi-million pound infrastructure project in itself, the road will support the growing population in the area to live life well and expand opportunities for inward investment and better connectivity across Scotland.”

The heads of terms agreement for the Tay Cities Region Deal was signed in November with both the Scottish and UK Governments committing £150m to a deal.

A working group led by Scottish Enterprise will be set up to oversee the development of the industrial investment programme.