Dualling of a busy commuter route into Cambridge has been shelved
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Government transport chiefs have written to councils, organisations and community groups apologising for delays to the A428 widening project.
Local people now fear the new £51m road will have to bid for funds again with other schemes in the eastern region.
Work to dual the A428 was due to start in 2005 but plans have been put on hold and work may clash with an A14 scheme.
Shona Johnstone responsible for transport at Cambridge County Council said: "That would be catastrophic."
Thousands of cars use the A428 every day and a widening scheme carried out at the same time as work on the A14 would bring chaos, local council transport chiefs believe.
Mrs Johnstone said: "We feel the government has let us down badly and are ignoring the real need for the road.
"I would point out to them that the A428 road already carries 5,000 more cars a day than it should."
The government now says work on the road is likely to start in 2008.