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Cambridge has been named as one of 11 towns and cities to be awarded cycle demonstration town status.
Funds from the Department of Transport will be given to help promote cycling in England.
Cambridge city centre has been recognised as having high levels of cycling but the scheme seeks to promote this across outlying areas.
In addition to the cycle demonstration areas, Bristol was named as the first official cycling city.
Cut congestion
The government has invested £3.6m in the Cambridge plan which will be matched by Cambridgeshire County Council.
Matt Bradney, of the county council, said: "I am delighted that we have been awarded national cycling demonstration town status.
"This investment will build on the good work we have already started to encourage more people on their bikes, reduce congestion and help forge cycle links with existing and new developments.
"It has been a real partnership effort and I would like to thank our partners at the city council and South Cambridgeshire District Council for their help in securing this prestigious opportunity."
The other cycle demonstration towns and cities in the scheme are Blackpool, Cambridge, Chester, Leighton Buzzard, Shrewsbury, Southend-on-Sea, Southport with Ainsdale, Stoke, Woking and York.
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