North Yorkshire County Council has agreed to stump up the £6.5m required of it to ensure a £42.4m highway scheme goes ahead.
The Department for Transport has already agreed to provide £35.9m towards the cost of a three-mile long A684 relief road to bypass Bedale, Aiskew, and Leeming Bar.
The scheme has been calculate as having economic benefits outweighing costs by a factor of six to one. Construction costs are estimated at £34m.
County Councillor Gareth Dadd, executive member for highways, said: "This is a once-in-a-lifetime opportunity. We think it is right now to move forward to the next stage in the process. But we live in an austere economic climate, and the scheme will be constantly reviewed throughout this process to ensure costs do not escalate to a point where they become unviable. We are determined that the county council will not be exposed to any unacceptable risk."
He added: "Having said that, we believe this road is essential for the future prosperity of a very large part of North Yorkshire. As well as being of obvious immediate benefit to Bedale and its surrounding communities, the bypass will make access to the northern Dales – one of the heartlands of the hugely important North Yorkshire visitor and tourism economy – very much safer and easier."
