Signals were due to be installed at the junction of the A192 and the road which leads to the Lancaster Park estate as part of planning permission for Persimmon’s Charles Church brand to build 53 new homes at the site it has called Trevelyan Grange.
But the plans were opposed by residents and councillors, who said last autumn that the new lights would lead to gridlock.
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Persimmon had said at the time that the lights were the “best operating design for this junction”.
But the company has revealed this week that it “will shortly be submitting a revised proposal (to Northumberland County Council) to see the removal of the signalised junction”.
Coun Bawn said: “I am absolutely delighted that common sense has prevailed at last.
“My fellow councillors and I, along with numerous local residents, could see that the proposed traffic light junction was over-engineered and would have led to the gridlock of Morpeth.
“There was never any justification for these lights for a development of this size. This result is a testament to all those who have campaigned publicly and behind the scenes to amend this crazy proposal.
“My thanks also go out to the developer and the highways team at County Hall for finally reaching this sensible conclusion.”
Morpeth Mayor Alison Byard, who is also chairman of Morpeth Town Council’s Planning and Transport Committee, said: “I am delighted to hear that negotiations between the developer and county council have been effective in avoiding the need for lights at this junction, which were unpopular with residents and local councillors alike.
“We were very concerned about a repeat of the unnecessary congestion caused at the Telford Bridge roundabout.”
A spokesman for Persimmon Homes North East said: “We always actively consider and listen to the views of the communities we serve.
“Further to feedback received in our on-going engagement with residents, councillors and the highways authority, we will shortly be submitting a revised proposal to see the removal of the signalised junction.”