PLANS to fund the rebuild of the A338 Spur Road with a £23.4m government grant have a “bleak” future.

The work was due to start in September, however the Government did not approve grant funding last week when it backed other transport schemes.

The project now faces a delay and Dorset County Council may have to borrow millions to get it going. Rebuilding work is needed as the road is collapsing under the weight of 59,000 vehicles a day.

Cllr Geoffrey Brierley, cabi-net member for transport, said: “Our plans are in place to start but without money we can’t do it. Whether or not the Govern-ment gives us the money, we have got to find it, because the A338 is in such a state.

“We would probably have to look at other ways of raising the funds - it might mean having to borrow, but that’s early days. I can’t say it will go ahead this year but I would be determined to do it as early as possible.”

He said it was unli-kely there would be any news on funding until after the election.

The rebuild plan involves closing the road to one lane over six months from September in both directions.

The A338 costs £1m a year to repair and Dorset County Council decided it could no longer delay work on the six-and- half-mile stretch between Ashley Heath and the Cooper Dean roundabout.

A Department of Transport spokesman said the grant bid is still being considered.

However Government transport funding to the south west has reportedly been cut by 50 per cent.

Chris Irwin, chairman of TravelWatch South West, recently said: “The prospects are very bleak. If something is not approved by the time the election is called, it is something we will be waiting for a very long time.”

Dorset County Council’s current business plan says 10 per cent of the £26m cost would come from the council.

The plan indicates around £1m has already been spent on preparatory work, including the clearance of the grass verges to allow survey work and rescue protected lizards.

David Diaz, the project manager, told a public meeting this month: “If we don’t get the money we are looking at what alternatives we can do and whatever sources of funding we can get.

“We feel we have done so much preparation work both on the ground or behind the scenes, now is the time we have to push forward so we can look at other areas of the county. Our view is that we can’t afford to sit and wait for this money in future years if we don’t get it this year.”

Angus Campbell, leader of Dorset County Council, said he would be pressuring the government for news.

He said: “The intelligence we are getting is that almost all capital plans are being held up because the treasury is looking hard at almost all projects.”

He added: “Let’s be optimistic but realistic - we might have to deal with the rebuild another way in the long-term, because at the end of the day it’s got to be done.” He “very much doubted” a delay would mean the roadside clearance work would need doing again.

The schemes that got funding last week included Poole’s twin sails bridge and Weymouth town centre improvements ahead of the Olympics.

A Department of Transport spokesman could not give an answer on time scales for the A338 bid.

Jim Knight, south Dorset MP and the regional minister, said he was still pushing for the money.

He added: “I don’t know if it’s possible to get any action before the election. It’s looking less likely.”