Plans to extend the northern relief road in Sittingbourne might be back on.

Swale council could receive £54.6m to go towards transport and regeneration schemes, with a link between the Great Easthall estate and the A2 top on a list of priorities.

The windfall depends on the success of a bid for £1.2bn from the government by the South East Local Enterprise Partnership (LEP) for the whole region.

The group, comprised of leaders of business, local government and education, submitted a draft of its Strategic Economic Plan in December.

The document is a work in progress and a final submission needs to be made by Monday, March 31. Swale could find out if it will be included in the final round of bids by July.

Council leader Cllr Andrew Bowles, who gave an update on progress at a full council meeting on Wednesday, said: “It is potentially the best news we have heard for a long time.

If we get maximum funding, it would transform Sittingbourne, including the relief road, because it would provide alternatives to junction 5 of the M2 and for lorries from Sittingbourne and even Sheppey to the Channel ports.”

He said it could open up employment opportunities at the Kent Science Park. However, Bapchild Parish Council chairman Andy Hudson – a long-time critic of the plan – says it will create congestion hell for villagers.

He said: “From a Bapchild perspective we are going to have a traffic explosion on the A2 and that doesn’t just affect us but Faversham, Tonge and Ospringe. Everyone gets hammered.”

“Swale may also benefit from another bid being submitted by the South East LEP to government.

The draft structural investment fund strategy sets out how it would invest part of a possible £165m allocation for the South East.

If successful, it would go towards developing local skills and economic growth. Parts of Sittingbourne and Sheppey are seeking Assisted Area Status as part of a joint application by Swale and Medway councils.

It could mean businesses in Chalkwell, Iwade, Lower Halstow, Kemsley, Milton Regis, Murston, Woodstock, Queenborough, Halfway, Sheerness East and Sheerness West would benefit from additional financial support. A final decision on this is expected in July.