CBI Wales Advocates for M4 Relief Road Revival in Senedd Election Manifesto
The Confederation of British Industry (CBI) Wales has issued a strong call for the next Welsh Government to reconsider building an M4 Relief Road as a central component of efforts to enhance productivity and economic development across the nation. In its comprehensive Senedd election manifesto, the prominent business membership organization emphasizes that improving transport infrastructure, particularly around the congested M4 corridor, is critical for future prosperity.
Revisiting a Long-Standing Infrastructure Proposal
This appeal comes seven years after former First Minister Mark Drakeford rejected the £1.3 billion M4 Relief Road plan, which was designed to alleviate severe traffic congestion on the existing motorway between Cardiff and Newport, especially near the problematic Brynglas Tunnels. The CBI had previously lobbied intensively for the implementation of the so-called 14-mile "black route," a proposed new motorway section south of Newport that would traverse parts of the Gwent Levels from Castleton to Magor.
The original funding model for this ambitious project combined the Welsh Government's capital borrowing capabilities with a substantial £500 million facility from the UK Government. However, with current inflationary pressures, any new iteration of the relief road would likely exceed £2 billion in costs, necessitating significant financial support from Westminster. While the CBI generally opposes measures that increase business operating expenses, the organization acknowledges that a toll system, even at a nominal rate, could be a potential feature of a new road.
Historical Context and Current Landscape
Multiple versions of an M4 Relief Road have been rejected over the decades, including proposals prior to devolution in the 1990s and by the Labour-Plaid coalition government in 2009. These rejections led to incremental improvements on the existing motorway, such as expanded lane capacity. Mr. Drakeford's decision to refuse the black route was based on both cost considerations and environmental concerns, contradicting the recommendation of an independent planning inspector.
Following this rejection, the Welsh Government removed the planning protections that had safeguarded the proposed route for 25 years, preventing other developments. Despite this, much of the publicly-owned land along the original route remains unsold and undeveloped, including the section that would have passed through ABP’s Port of Newport. Reviving the project, even along the black route, would require initiating a completely new legal and public inquiry process.
Alternative Measures and Political Positions
In response to the relief road rejection, Mr. Drakeford established the Burns Commission to explore public transport investments that could mitigate M4 traffic, particularly around Newport. Chaired by Lord Burns, the commission recommended establishing five new train stations between Cardiff and the Severn Tunnel. The UK Government recently confirmed it would fund these stations, though additional financing must be secured in the next spending review ahead of the 2029 General Election.
Politically, while First Minister Eluned Morgan supported the M4 Relief Road during her tenure in Mr. Drakeford's cabinet, she is not considering revisiting the project as a manifesto pledge. Conversely, the Welsh Conservatives have committed to delivering a new relief road. The CBI's manifesto, titled "Made in Wales: A Manifesto to Support Firms & Create Jobs 2026–30," advocates for prioritizing and fast-tracking infrastructure projects that unlock economic growth, including transport links like the M4 Relief Road and the A55 in North Wales, as well as digital infrastructure such as full-fibre broadband and comprehensive 5G coverage.
Business Perspectives and Economic Imperatives
Russell Greenslade, Director of CBI Wales, stated that congestion on the ageing M4 remains a pressing concern for businesses, negatively impacting transportation and connectivity. He emphasized, "From a transportation and connectivity point of view, the more we have, the better, and an M4 Relief Road would be an example of that. It is not just the M4, but also the A55 in North Wales, which, to quote some of our members, can often be like a car park."
Greenslade highlighted the growth of the compound semiconductor cluster in Newport, noting that improving the transportation network is essential to attract more workers and sustain economic expansion. He clarified that while businesses and investors agree on the need for robust infrastructure to grow the economy, the CBI is not advocating for any specific route solution for the M4 Relief Road. Alternative proposals, such as the "blue route" through Newport involving upgrades to existing roads like the Southern Distributor Road, have also been considered, though they are less developed than the black route.
Broader Manifesto Recommendations
The CBI's manifesto presents a wide-ranging set of recommendations aimed at fostering economic resilience and innovation. It calls on Welsh leaders to drive forward technology and innovation, eliminate planning system bottlenecks, invest strategically in infrastructure, and address Wales' high youth unemployment by providing young people with better access to skills, opportunities, and mental health support.
A key proposal is for the next Welsh Government to devise its own industrial strategy, aligning Welsh policies with UK frameworks to leverage economic growth effectively. This strategy would build upon the UK Government's ten-year industrial plan, which focuses on eight industry pillars including fintech and renewable energy. The business group urges party leaders to collaborate with enterprises to capitalize on Wales' entrepreneurial spirit, world-class universities and colleges, skilled workforce, and abundant natural resources to generate jobs and prosperity throughout the region.
Funding and Innovation Frameworks
To support indigenous business growth, the CBI suggests scaling up the investment capacity of the Development Bank of Wales to £2 billion through pension fund backing. Additionally, the manifesto advocates for establishing a long-term Welsh innovation funding framework. This could involve merging and coordinating grants from agencies such as Innovate UK (though non-devolved), Medr, and Business Wales into a single, predictable fund accessible to businesses over multi-year periods.
The business body also draws attention to critical issues like grid infrastructure capacity and consenting bottlenecks that delay renewable energy projects and factory connections. It stresses the necessity of well-resourced planning departments to prevent applications from being stalled for months or even years awaiting approval.
Youth Employment and Competitive Vision
The manifesto further recommends offering every 16–24-year-old access to paid placements integrated with mental health support, alongside more flexible, employer-led skills training aligned with actual job opportunities. While specific metrics are not detailed, the CBI challenges party leaders to transform Wales into "one of Europe’s most competitive and sustainable small economies by 2035."
Russell Greenslade concluded, "Welsh businesses have shown great resilience and a fierce competitive streak in dealing with both the high cost of doing business and the uncertainty experienced over the past decade. This election is an opportunity for party leaders to make Wales one of Europe’s most competitive and sustainable small economies by 2035. A new Welsh industrial strategy that capitalizes on the UK’s modern industrial strategy, and other UK policies on technology such as AI, can be a game-changer in raising innovation and productivity, bringing prosperity and high-quality jobs to every corner of Wales."
