Sir John Whittingdale has called the cancellation a "body-blow" to growth in mid-Essex.

The decision to cancel the A12 widening scheme has come as part of the Government's conclusion of the Spending Review.

In a letter to local MPs, Lilian Greenwood MP, the Minister for the Future of Roads, said: "We recognise that this may be disappointing news for local communities, and we remain committed to maintaining and renewing the road network to ensure that it works for all road users and provides value for money for all taxpayers. 

"We are also conscious of the housing needs in the wider area and that is why National Highways will work closely with developers and local authorities to examine how best the Strategic Road Network can continue to enable housing development."

The scheme would have eased congestion and accommodate increasing traffic demands between Chelmsford and the A120.

In response, Maldon's MP, Sir John Whittingdale said: "This scheme, which has been ready to commence for months, was planned with funds identified by the last Conservative Government. 

"Scrapping it undermines the Chelmsford Local Plan, jeopardising plans for 11,000 new homes and around 4,000 new jobs."

He added: "The Government cannot now expect local authorities in mid-Essex to accept the imposition of a huge number of new houses while at the same time failing to fund the supporting infrastructure that they require."

A recent satisfaction survey by Transport Focus rates the A12 as the worst  A-road in the country following a survey of 9,000 road users.

Councillor Louise McKinlay, Deputy Leader of Essex County Council, said: "As I and other council leaders and MPs in Essex have set out to the Government previously, the project is essential to support the ambitious plans for new homes, jobs and economic growth that we share. 

"We know that major infrastructure projects can have significant wider benefits. Essex County Council, and I am sure many of our partners, are concerned that this decision could have a significant, adverse impact on economic prosperity across Essex and the wider region for many years to come."

Cllr McKinlay added that she will seek an urgent meeting with Government ministers.