A major road improvement scheme in Somerset has been officially “paused” after the government announced a review into major transport projects across the country.

National Highways (formerly Highways England) has been working for several years on a planned scheme to dual the A358 between the Southfields roundabout in Ilminster and junction 25 of the M5 in Taunton, holding numerous public consultations to gain residents’ input.

Reports surfaced in early-March that the scheme was being cancelled, with one local land agent alleging he had “been told to settle all claims” – reports which neither National Highways nor the Department for Transport (DfT) sought to clarify.

Chancellor of the exchequer Rachel Reeves MP announced on July 29 that the DfT and the Treasury would review a number of major transport schemes after uncovering £1m of unfunded spending commitments for the coming year.

Following the cancellation of the £1.7bn Stonehenge tunnel, National Highways has confirmed that the A358 dualling scheme has been “paused in its current form” while this review is being carried out.

In a statement published on its official website, the agency confirmed: “This scheme has been paused in its current form, due to a number of affordability challenges.

“The preferred route protection remains in place while the future of the scheme is being considered by government as part of a wider review.

“We are therefore unable to confirm the future of the scheme until this process has concluded.”

The scheme, which is expected to cost £328m to deliver, will see new junctions created to link the dual carriageway with the A378 towards Langport along with the villages of Hatch Beauchamp and Ashill along the existing route.

National Highways’ most recent designs involve digging up the Nexus 25 roundabout – delivered as part of a £19.2m upgrade of junction 25 – and replacing it with a signal-controlled crossroads.

Other transport projects in Somerset which are covered by the government’s review include the new railway station planned in Wellington – with local MP Gideon Amos seeking clarity from the government after Ms Reeves personally assured him that the £15m scheme would be proceeding.

The review is expected to be completed around the time of Ms Reeves’ first budget as chancellor, which will be presented to the House of Commons on October 30.