Money will build new bridge, new link roads and improve road access.
The Department for Transport will invest nearly £20 million into two vital schemes to regenerate towns in Dorset and Somerset.
£14.14 million will go towards building a new bridge over the Back Water Channel - improving links between Poole and Hamworthy and new link roads will also be provided, unlocking a development site near Poole town centre, which has been earmarked for 2,000 new homes and is expected to create 4,600 new full time jobs.
£5.464 million is also being invested towards improving road access to Taunton town centre and regeneration areas, supporting the growth of the town.
Both schemes, which are due to start this month, will also improve facilities for pedestrians and cyclists and encourage improved public transport.
Sadiq Khan said: "The Government is committed to investing in key transport links which boost economic growth. This money will allow Poole Borough Council and Somerset County Council to deliver vital transport improvements which will support jobs, help boost the economy and attract further investment to the South West.
Department for Transport