Labour-Lib Dem deal to halt building of M4 relief road and to work on South Wales metro instead

The Welsh Lib Dems said they had reached a deal in the Senedd with Labour to postpone the building of the M4 relief road

The Welsh Lib Dems said they had reached a deal in the Senedd with Labour to postpone the building of the M4 relief road

The Welsh Liberal Democrats have hailed a deal they have reached with Labour that will see construction of the M4 relief road around Newport halted until after the 2016 Welsh elections, whilst work gets underway on the South Wales Metro project.

Kirsty Williams, leader of the Welsh Lib Dems, said the agreement, reached after Plaid Cymru pulled out of talks with Labour with the M4 relief road one sticking point, hailed the postponement of the project her party also opposes, whilst announcing £95m to spend on other transport infrastructure.

This includes the building of the eastern bay link road in Cardiff, a £57m project connecting Cardiff Bay with the A48 at Temorfa.

The agreement also creates a discount bus scheme for 16-18 year olds in Wales, which Williams said would help young people to access school, training and work.

The M4 relief road project is expected to cost more than £1bn. The South Wales metro project if fully implemented could cost £1.97bn. Labour lacks a majority on the assembly so must seek the support of other parties to pass its budget. Full details of the budget will be unveiled by the Welsh finance minister later today.

6pm update: Welsh finance minister, Labour's Jane Hutt, said the agreement would include £40m of investment in transport infrastructure, including an additional £30m to ensure the Cardiff eastern bay link road starts construction next year. Hutt said: "This is a responsible, pioneering and sustainable budget."