A £1.2BILLION tunnel and dual carriageway WILL be built at Stonehenge, say government sources.

The Journal has learned that chancellor George Osborne intends to make clear they plan to push ahead with the 1.8-mile tunnel in his autumn statement on December 3.

It would end years of campaigning by local residents in the area, fed up with huge congestion on the arterial route to the south west.

The investment is being brought forward following floods last year, which left the A303 as the only route into the south west.

Rumours were sparked on Tuesday when the chief secretary to the Treasury Danny Alexander hinted that investment in transport for the south west was his “highest priority” in the forthcoming autumn statement.

He said: "The South West has enormous economic potential. Not just for the South West but to help the whole of the UK economy move forward.

"The infrastructure needs of the South West are my highest priority. I know that issues like investment in the A303 are enormously important, the rail issues, taking forward the broadband programme."

Janice Hassett, founder of the Stonehenge Traffic Action Group, said: “If it happens it is great news and it will get the traffic out of our villages, which has seen places like Shrewton turned into rat runs.

“But with a general election coming up it is important we keep up the pressure.

“We are still in it for the long haul.”

Salisbury MP John Glen said with any potential building not beginning for another five years the plan still has many legal loopholes to go through.

He said: “I am continuing to lobby very hard to make sure that investment goes ahead. I hear positive indications but until the chancellor makes the announcement I am still in full campaign mode.”

Reetendra Nath Banerji, the parliamentary candidate for the Liberal Democrats in Salisbury, said: “For a local economy hugely reliant on day trippers coming from right across the world, we don’t want international visitors and locals sitting in traffic until a tunnel is built.

“I am sure our representatives will take strong action and see to dual that road now.”