Business leaders and councillors have welcomed the news that £4.7 million is to be spent improving a major road in the county.
The Highways Agency said yesterday that the cash will be spent next year on the Dodwells and Longshoot junctions of the A5, near Hinckley.
About 2,500 new jobs are expected to be created in the area over the next few years following the designation of nearby MIRA, the motor industry research centre at Higham on the Hill, as the county's first enterprise zone.
Significant housing development proposals in nearby Barwell and Earl Shilton could also see 3,000 new homes built in the area in the next few years.
Hinckley and Bosworth Borough Council, Leicestershire County Council and the Leicester and Leicestershire Enterprise Partnership (LEP), which had called for improvements to the A5 to support the impact of development in the area, have welcomed the funding.
Andy Rose, enterprise and growth manager with the LEP, said: "We welcome this very much, it is something we've been pushing for over a number of years.
"The A5, which is a major trunk road, is not the easiest of roads to navigate and there have been significant congestion issues which has an impact on businesses in the area."
Work will include widening the road, new traffic signals at the Dodwells roundabout and changes to the Longshoot junction.
Hinckley and Bosworth borough councillor John Moore, said: "We have been calling for improvements to the A5 in this area for many years.
"I am sure the news of this significant amount of money being spent will be welcomed for the economic impact it will have on the area.
"The effect of current congestion on my Burbage ward is such that during most rush-hours there are one to one-and-a-half mile tailbacks, which leads to rat runs through Burbage.
"It will have a significant beneficial impact on my area."
Fellow councillor Peter Batty said: "Investment in this area is long overdue, particularly with the MIRA redevelopment.
"The announcement of the funding is extremely welcome. The road has been a nightmare and this should improve safety and traffic flow."
Other funding for Leicestershire announced yesterday included £100,000 to install two CCTV cameras on the northbound M69 approach to junction 21 of the M1 junction, £850,000 for two variable message signs on the M69 between junction 1, for Hinckley and Nuneaton, and the M1 in Leicester, and £180,000 for low bridge warning signs on the A5 in Hinckley.
Roads Minister Stephen Hammond said: "The Government is committed to cutting congestion and accelerating growth – that is why the Chancellor injected an extra £100 million into the Highways Agency pinch-point programme last autumn.
"This third round of innovative schemes has the potential to help create more than 94,000 new jobs and 61,000 new homes, while making life easier for the thousands who use these roads every day."