Grantham has missed out on a £71 million government cash boost to help it fund much needed housing and new roads.

South Kesteven District Council had hoped to gain the money in a bid to the Housing Infrastructure Fund.

The council, working closely with Lincolnshire County Council, had been named as a finalist for funding around a year ago.

However, council leader Kelham Cooke has told district councillors "disappointing news" Grantham's bid has "not been successful".

His letter continued: "Had it been successful, this bid would have unlocked £71m of Government funding for important infrastructure to the south of Grantham, primarily the Grantham Southern Relief Road. The feed-back that we received on the bid was that the strategic case and deliverability was strong, but that other bids scored more highly on value for money and some matters relating to transport.

"While there is no doubt this is disappointing news, we, alongside our partners from the County Council, remain determined to continue to facilitate the delivery of growth in Grantham.

"Homes England and the Department for Transport have been in touch and offered to meet with us to discuss our bid and how they can continue to support us in the delivery of the planned growth of Grantham.

"I know that the County Council is still committed to the delivery of the Grantham Southern Relief Road, and our new Local Plan is very clear about the focus of housing growth to the south of Grantham. The absence of additional Government funding is disappointing, but these growth plans are still a priority for us.

"There will be a press release in due course with this news, but I wanted to share it with you personally first and assure you that despite this disappointment we will continue to work together, with our partners, to deliver the sustainable growth of Grantham.