South Lanarkshire Council has secured more than £20 million from the UK government's Levelling-Up Fund, which will be used to transform two part of the region.

Land around Shawfield in Rutherglen – described as one of the most polluted inner city sites in the UK after decades of heavy industry – is to be decontaminated and turned into a new national business district, creating jobs as well as a cleaner environment.

The Council will also create a new walking and cycle route called the Clydesdale Way, as part of a joint project with Dumfries and Galloway and Scottish Borders councils. The new route is regarded as the 'missing link' in Britain's national paths network.

Together, the two South Lanarkshire projects will be funded with more than £20 million from the UK Government's Levelling Up Fund.

Council Leader Joe Fagan welcomed the success on both fronts, noting that the Shawfield bid "gives us a unique opportunity to address a historic issue that is a blight on our landscape."

Councillor Fagan said: "Our project will be truly transformational and will accelerate the clean-up of this area and in doing so develop a national business district with more than 2,700 square metres of business space. In turn this will open up further growth with an estimated 5,800 employment opportunities in an area which has a deprived community at its core.

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"The redeveloped land will enhance South Lanarkshire's growing reputation as one of Scotland's economic powerhouses and demonstrate clearly the area's burgeoning confidence as a great place to live and do business."

Jacob Young MP, Minister for Levelling-Up, confirmed £14,637,600 was being awarded for the project, which will be the second phase of regeneration work in the area, and will be undertaken with Clyde Gateway, the council's urban regeneration partner in that area.

Councillor Fagan added: "I am also delighted that our ambitious joint bid with colleagues in Scottish Borders and Dumfries and Galloway has been successful. South Lanarkshire's part of this bid is a vision for a brand new route for walkers and cyclists – the Clydesdale Way – that will hugely enhance connectivity across southern Scotland by joining up our communities and beauty spots with the Southern Upland Way, the River Ayr Way and the John Buchan Way.

"By improving and connecting our rural paths and cycle network we will transform access and connectivity within and between our communities, with a wide range of exciting benefits, most obviously tourism and the economic advantages it can bring, but also promoting health and wellbeing and social inclusion."

The Clydesdale Way is one part of the Three Rivers Active Tourism Project, which has received a total of £22,809,416 funding across the three councils involved. The South Lanarkshire plan will create a 239 km network of footpaths and cycleways connecting communities, including New Lanark, Wanlockhead, Biggar and Douglas.

It will help deliver the final part in a continuous network of trails that will connect Edale in Derbyshire to Cape Wrath in Sutherland via the Pennine Way, St Cuthbert's Way, Southern Upland Way, Clyde Walkway, Kelvin Way, West Highland Way and North Highland Way.