The regeneration of Peterborough railway station and surrounding area – known as Station Quarter – has taken a major step forward following government approval of the full business case.

The approval means that, pending the government’s forthcoming Comprehensive Spending Review, £47.8m in funding will be unlocked to begin construction on the first phase of works, City Link, in late autumn this year.

Backed by the Combined Authority, Peterborough City Council, London North Eastern Railway (LNER) and Network Rail, the Station Quarter project is a cornerstone of plans to improve the city’s transport, drive economic growth and make public spaces more attractive in the city. The full business case for the proposals was submitted in March this year.

City Link will will replace the current underpass at Cowgate with a direct link.

The wider Peterborough Station Quarter project includes a new western entrance to the station, a multi-storey car park on station’s west side and refurbished station buildings on the eastern side.

There will be new public spaces, improved street design and planting and measures to reduce flood risks.

Future phases are planned to unlock land for new homes, jobs, and commercial development, replacing some existing surface-level car parking with mixed-use regeneration.

Nick Thulbourn, cabinet member for growth and regeneration, said: “The approval of the Station Quarter project is a monumental achievement for Peterborough and I’d like to thank all those involved for their hard work to get to this point.

“This project will transform the station area into a vibrant gateway, enhancing connectivity and accessibility for residents, business and visitors. I’m looking forward to seeing the positive impact this development will have on our city.”