Improvements to the A382 between Newton Abbot and Drumbridges could be on the way.

Councillors have approved outline plans for road widening, upgrading junctions, new roundabouts and upgrades for pedestrians and cyclists. The road will support a large amount of housing and employment planned for the area.

The scheme, expected to cost around £45 million and funded largely by central government, could start in 2024 and take three years to complete.

It forms phase three of major highways improvements in the area; phase one between Whitehill Cross and Forches Cross was recently finished, while the phase two link between the A382 and A383 (Houghton Barton Link) is currently being built.

A report to Devon County Council's ruling cabinet describes how the existing road "is of a low standard with poor alignment, high traffic flows, a poor safety record and no facilities for pedestrians or cyclists."

Recommending initial approval, it added the road upgrade would "fulfil the overall scheme objectives to deliver development, improve journey times, improve safety and encourage the use of sustainable modes of transport."

Councillor Andrea Davis (Conservative, Combe Martin), cabinet member for climate change, environment and transport said: "It's a very good scheme. It improves cycling facilities along this really important strategic route. I drove myself last week – it's not great and I certainly wouldn't get my bicycle out on it. It's got complete support from Teignbridge District Council, residents and all the local parishes."

Head of planning, transportation and environment Dave Black added: "It's the key growth area for Newton Abbot, both now and in the future. The road is very narrow, no pedestrian or cycling facilities. It's got a very poor accident record, it's got very high traffic flows and it's really quite a low standard road."

Welcoming the project, Councillor Alan Connett (Lib Dem, Exminster & Haldon), opposition leader of the county council and leader of Teignbridge District Council said: "The road's certainly in need of improvement, as Cllr Davis has said, and of course it facilitates the development of much-needed housing in Newton Abbot, so hopefully all will progress well."

The cabinet unanimously agreed to prepare a full business case for the scheme, which will be submitted to the government, and gave approval for detailed designs. Officers will also start getting agreements for acquiring the land needed for the improvement works.

Further cabinet approval will be needed before the business case is sent to Whitehall and for the award of the construction contract, which will go out to tender next year.