Investment must be made in Perth’s transport infrastructure if the city is to survive, councillors have been told.
Almost £40 million will be spent upgrading the A9/A85 junction and creating a link to Bertha Park, with further cash outlay expected in the future.
This will divert traffic away from congested parts of the city and go some way to addressing air quality issues. To pay for this, however, the local authority must borrow up to £15.7 million.
This loan was discussed at a full meeting of Perth and Kinross Council, where members were urged to back the proposals.
Council leader Ian Miller revealed there had been “unprecedented” interest from businesses hoping to set up in Perth and investment in a new road was “absolutely necessary”.
He said: “To cope with the projected population growth and potential new jobs, we need new infrastructure, particularly roads infrastructure.
“It’s expensive to build new roads but absolutely necessary if we are to allow Perth to fulfil its future potential.
“We must also face up to the issue of air pollution in the city. If we do nothing, then the major junctions in Perth will progressively gridlock over the next few years.”
The route, which will service the proposed new school at Bertha Park, is the first section of the planned Cross Tay Link Road between the A93 at Scone and the A9 and forms a major part of the local authority’s planning strategy.
Additional funds have already been secured from Sainsbury’s, which has contributed £2.18m, while proposed developments at Bertha Park and Almond Valley should result in a £15m windfall towards the scheme.
Although councillors were supportive of the plans, concerns were raised about the local authority bearing the brunt of the financial burden.
Ann Cowan asked whether money could be secured from other channels, saying: “Developer contributions are still some way off and even after Sainsbury’s contribution, there is still a funding gap.
“The A85 trunk road is of some importance, as is the A9 and these roads are maintained by the Scottish Government. Does that not imply some responsibility for the funding?”
Environment executive director Jim Valentine said discussions were taking place with Transport Scotland for financial support.
Mr Valentine also suggested savings of up to £7.6m could be made as there is “still uncertainty” over some parts of the scheme.
Alexander Stewart said: “We have to send a message that we are very much open for business. This road will ensure that is the case.”
The proposal to borrow up to £15.7m was approved.