AS early as 1996, developers proposed a new town located on land to the east of Exeter to meet future housing needs.

In 2005, East Devon district councillors gave proposals to build the town their backing.

The name Cranbrook, chosen by district councillors, derives from the Cranny Brook, which runs through the site of the new settlement near Rockbeare.

The town was nearly called Newton Lockyer, but Cranbrook won by one vote.

The town will be sited between the old A30 and the Exeter to Waterloo railway line.

In January this year, a leading property expert predicted that work on the new town of Cranbrook would not begin for at least five years.

Now, plans to start work by March, 2010 are a step closer, thanks to the £12 million boost.

Cranbrook will include 2,900 homes and 75 hectares of business land and will create up to 4,500 jobs.

The South West Regional Development Agency has paid £6.5 million for upgrades to junctions 29 and 30 of the M5.

This work will improve access to Cranbrook, and the proposed Skypark and science park.