In a significant move for the Welsh economy, Chancellor Rachel Reeves has used her Budget to pledge financial support for the ambitious Cardiff Parkway project, a major new mainline train station and integrated business park.
A Major Budget Commitment
The Chancellor's Budget policy paper explicitly states the government's recognition of the growth potential of the Cardiff Parkway development. It confirms that the UK Government will work with the Welsh Government and the private sector to develop plans for the delivery and funding of a station to serve the area "as soon as possible with government support."
This commitment comes after intense lobbying from Wales' First Minister, Eluned Morgan, who has been making the case for an improved funding allocation directly to the Chancellor and the Prime Minister. This lobbying effort was heavily influenced by the strong interest shown by engineering giant Rolls-Royce in the site.
Rolls-Royce: A Potential Anchor Tenant
The prospect of Rolls-Royce establishing a major new hub at the business park has been a key driver in unlocking Treasury support. The company has already established a satellite office for its Submarines division at a nearby business park in St Mellons, which is set to create 200 jobs.
Steve Carlier, President of Rolls-Royce Submarines, has spoken positively about the Parkway location, highlighting its excellent connectivity by road and rail, proximity to its principal customer in Bristol, and the "super-strong academic backbone" provided by nine universities across South Wales and the West of England.
While Rolls-Royce is also appraising sites in the North of England, the unique selling point of Parkway's integrated mainline station gives the Cardiff location a distinct advantage. The company is currently in high-level discussions with both the Welsh and UK Governments, as well as the Ministry of Defence.
Project Details and Funding Context
The Cardiff Parkway scheme, driven by South Wales Developments Ltd, finally secured planning consent from the Welsh Government in January 2025. The project includes a four-platform mainline station and a 900,000 sq ft business park on a 200-acre site.
The final cost of the station is still being determined through further design work but is now expected to be more than £130 million, a figure that has risen due to construction inflation and a protracted planning process. The station itself is anticipated to be privately financed, supported by a long-term lease with Transport for Wales.
However, the existing £445 million allocated for Welsh rail enhancements in the summer spending review is considered inadequate for the required rail corridor works for Parkway. These works include upgrading relief lines and constructing new track to accommodate passenger trains and the station's four platforms. The exact amount of additional funding for Parkway, beyond the £445 million, is yet to be confirmed.
Nigel Roberts, Chairman of South Wales Developments—a joint venture between the Roberts family, Investec, and the Welsh Government—welcomed the Budget announcement, stating it represented a "joined up approach" to make this great project for the Welsh economy a reality.
