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The government has agreed a deal with North Yorkshire County Council over a new road through the Dales.
"As well as being of obvious immediate benefit to Bedale and its surrounding communities, the bypass will make access to the northern Dales."
The deal will see the government pay £35.9m towards the cost of the A684 bypass with the authority picking up the remaining £6.5m.
The council claims it could create economic benefits worth up to six times the cost of building it.
The road will take traffic around Bedale, Aiskew and Leeming Bar on a three mile route from Northallerton Road to a new junction near Bedale Golf Club.
Coun Gareth Dadd, executive member for highways, said: "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.”
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