CITY leaders say the funding green light for a £160m upgrade of Castle Street is a signal that Hull is on the move.
Confirmation of the financial backing from the Government for the long-awaited improvement scheme means construction work could start on-site by the end of 2015.
In turn, it is hoped the pledge will convince engineering giant Siemens to make a final positive decision to open a new offshore wind turbine assembly plant in Hull.
Councillor Martin Mancey, the city council's portfolio holder for economic regeneration and highways, said: "We are delighted with the news and we can now move forward with the Highways Agency to improve this important road that will make a huge difference to the economy, local businesses, regeneration of the city as well as helping our aims to improve the city as a visitor destination."
Peter Aarosin, founding member of the Humber Port Partnership and chairman of the Hull and East Yorkshire Bondholders, said ending congestion on the route would open up the area to new business opportunities. "Investments such as this £160m upgrade to the A63 at Castle Street, which is a key route to the port of Hull, is crucial in order for us to sustain the Humber's competitiveness and unlock future investments," he said.
"The Humber is the UK's energy estuary and has the country's busiest port complex.
"We have the UK's largest deep water port-side development sites all within an Enterprise Zone, giving us huge opportunity for growth particularly in the energy market.
"Relieving congestion on the roads to the port is an important part in attracting investment onto those sites."
The funding commitment announced yesterday by Treasury Secretary Danny Alexander establishes Castle Street as the main new road project in the Yorkshire and Humber region.
He said "Where our predecessors left the road network on the hard shoulder, we are bringing it into the fast lane."
The Castle Street scheme will see a section of the A63 lowered by about 7m at the site of the current Mytongate junction.
A new access road between Ferensway and Commercial Road for local traffic will be built over the lowered section.
In addition, the scheme will see the eastbound carriageway between Princes Dock Street and Market Place extended to three lanes. There will also be up to three new footbridges.
As yet, hopes of including a large pedestrian land bridge linking the city centre to the Marina and the Fruit Market areas as part of the overall scheme have yet to be confirmed.
Hull West and Hessle MP Alan Johnson said it was likely that any land bridge would have to be funded separately but remained confident the cash could be found.
"We don't want to hold things up by having a row over a bridge," he said. "I am optimistic the funding can be secured to make it happen as part of the much bigger scheme."
Detailed designs for the road upgrade are due to be released today as part of a new public consultation over the proposals.
It is understood they will include the original idea of having three smaller footbridges across the A63 at Market Place, Princes Dock Street and near the Mytongate junction.
Mr Johnson said: "I believe the new plans will look very much like the last plans put forward a couple of years ago.
"What we need to do now is make sure Hull as a city is ready to deal with all the disruption when the work actually starts."
Hull North MP Diana Johnson said Mr Alexander's announcement should come with a health warning.
She said."I'm relieved the A63 scheme has not been put back further.
"However, given this Government's record of cancelling or delaying capital schemes that have been announced previously, our campaign for the A63 upgrade should not end today."
Ms Johnson also angered political opponents by tweeting: "Danny Alexander sounds like and looks like a Muppet with George Osborne working him from behind."
But Liberal Democrat city councillor Claire Thomas, who is the party's parliamentary candidate in Hull West and Hessle, praised the Government's track record for investing in the region.
She said: "The city's Labour MPs have been quick to criticise everything and anything this Government has done but when you look at the facts, Hull has seen more investment in our infrastructure under three years of the coalition Government than it did under 13 years of Labour.
"Few people ever expected any Government to tackle Humber Bridge tolls but this one has.
"They scrapped Labour's backdated port taxes that threatened jobs at Hull docks and have backed the Greenport manufacturing plans.
"This new investment once again shows the Lib Dems in Government are serious about improving the economy of our area."
Andrew Percy, the Conservative MP for Brigg and Goole, said: "The announcement about the A63 is good news for the sub-regional economy in the Humber and for my constituents and comes on top of other investments which have already been delivered, such as the Humber Bridge."
The idea of lowering the A63 under the Mytongate junction was first put forward in early 1992.
Bearing many similarities to the current scheme, the cost was put at £16m.
That vision eventually fell victim to Government spending cuts to the national road-building programme.
Since then, a succession of ministers from different governments have been lobbied to resurrect the idea.
Proposals for a more ambitious cut-and-cover tunnel scheme were shelved in 2008 after soaring cost estimates put the likely bill at about £500m.
