Extra £71.5m invested in Gloucestershire's M5 junction 10 improvements
Work to improve the M5 is expected to start in Autumn
Work to improve the M5 which will help unlock 20,000 new homes near Cheltenham will “start in earnest” this autumn as the Government pledges an extra £71.5m.
Homes England has committed this week to providing the funding necessary for the M5 junction 10 improvements to go ahead.
The estimated cost of delivering the approved scheme had surged by £110 million from its original cost of £253m in 2020.
However, the major scheme, which is seen as vital in providing Gloucestershire with transformational economic growth, will provide a a new junction which will provide access in all directions on and off the motorway.
The project also includes a new link road connecting the A4019 to the B4634 in west Cheltenham and widening of the A4019 Tewkesbury Road, as well as new cycle paths and walkways and flood mitigation measures.
The improvements are designed to unlock access to planned housing including the approved 4,115 homes and 60 acres of employment land at Elms Park and employment development sites in the west and north of Cheltenham.
Developers will benefit from the infrastructure as well as contributing to the cost of the scheme. And the council says the project will also make the road network more resilient and sustainable for years to come.
This latest funding pledge comes after Gloucestershire County Council began preparatory work at the site and they pledged an extra £40m funding for the £363m project in September.
Council chiefs say the latest investment pledge will provide vital transport upgrades which will facilitate the new homes, including more than 7,000 which would be affordable.
The motorway junction revamp will help the National Cyber Innovation Centre and technology cluster at the Golden Valley development near GCHQ creating around 12,000 skilled jobs in west Cheltenham.
Development consent for the scheme was granted by the Secretary of State for Transport in June 2025, marking a major milestone and confirming the strategic importance of the project for the county’s transport network and economy.
Economic development, planning and infrastructure chief Julian Tooke (LD, Pittville and St Paul’s) said the council took some “calculated” risks to help secure the scheme which will be a “catalyst for transformational growth” between Birmingham and Bristol.
And he believes the extra Government funding is a turning point for Gloucestershire.
He said the costs are now “relatively” under control after years of inflation and Shire Hall has worked with the Liberal Democrat district administrations at Cheltenham, Gloucester and Tewkesbury to achieve funding for it.
The councils, MPs and business community also lobbied hard to get the funding, he told the Local Democracy Reporting Service.
“When we did the preparatory work, we did that without knowing we had the full go-ahead on the project. We did that because we had to do it this season.
“Otherwise we would have had to wait for another year and there would have been more inflation.
“We took a calculated risk which has come through.”
He said the scheme is fully thought through and transport infrastructure will be provided for the new homes and employment sites.
“Construction will start in earnest in the autumn,” he said. “We will deliver in 2029.
“The M5 corridor is really important in terms of economic development for the county and building up around that M5 corridor which links up Birmingham and Bristol.
“We believe passionately in the good that it will bring but it will obviously cause some disruption so we will work with the local community around that.”
Cllr Tooke said the council is really conscious it will impact people who live nearby but they will work as hard as possible to reduce the impact.
“The delivery of the M5 Junction 10 Improvements Scheme is a catalyst for transformational growth and opportunity in the region, driving future investment and prosperity. I’m grateful to Homes England and our partners for their support and confidence in this essential infrastructure,” he said.
The newly confirmed £71.5m is additional funding from UK Government’s Housing Infrastructure Fund, administered by Homes England, and will bridge the gap to deliver the full improvements.
Funding for the scheme had already been secured from a range of sources to date, including contributions from: UK Government’s Housing Infrastructure Fund, administered by Homes England; district council Community Infrastructure Levy funding; Gloucestershire County Council; and S106 contributions from developers whose sites will directly benefit from the scheme.
Tewkesbury MP Cameron Thomas said: “Gloucestershire’s heritage as a foundation of UK engineering and security makes it an ideal nucleus for growth in both sectors, as we look to meet the challenges of tomorrow. This crucial infrastructure upgrade will ensure not only that we keep skilled professionals in Gloucestershire, but that we are an attractive proposition for those across the country.
“This welcome government investment is testament to the consistent and joined-up pressure of local campaigners, Gloucestershire County Council and Members of Parliament, which continue to keep Gloucestershire in the government’s thinking. I commend everybody involved.”
Gloucestershire County Council is leading delivery of the scheme in collaboration with National Highways and other partners. Weather-dependent preparation works began in autumn 2025, to avoid rising costs and keep the project on track. These early site works are being carried out by appointed contractor Galliford Try.
With the additional funding now in place, the council and its partners will finalise delivery arrangements and continue preparation works for the start of the main construction phase in autumn 2026.
Cheltenham MP Max Wilkinson said: “The upgrade of this junction will support thousands of new jobs in cyber and tech at the landmark west Cheltenham Golden Valley development. After a lot of campaigning work in Parliament and by the local business community, I’m pleased and very relieved to have heard the good news that Ministers have done the right thing by closing the funding gap. I hope we can now get on with delivering the prosperity Cheltenham has been promised for so long.”
Homes England has been approached for comment.