Welsh Government Confirms £48.5m Transport Funding for South-East Wales

The Welsh Government has announced a major funding agreement to support the first year of a five-year Regional Transport Plan, marking a significant step forward for transport infrastructure across the Cardiff Capital Region (CCR).

The funding forms part of a wider £48.5 million package allocated to south-east Wales through the Welsh Government’s Regional Transport Fund. The investment will support the long-term development of local transport networks and improve connectivity across the region.

As part of the announcement, allocations for Cardiff have been confirmed through to 2029, with more than £20.5 millionset to be invested in transport improvements across the Welsh capital.

Funding breakdown for Cardiff:

• 2026–27: up to £5,735,580

• 2027–28: up to £9,022,886

• 2028–29: up to £6,002,117

The Welsh Government funding will be combined with other investment streams to deliver a range of improvements aimed at enhancing sustainable travel and public transport.

Key schemes for 2026/27 include:

• Newport Road Sustainable Travel Corridor (Phase 1): A major project linking Cardiff city centre to the Newport boundary, featuring a permanent cycleway, active travel infrastructure and bus priority measures.

• Northern Bus Corridor: Introduction of new bus priority measures between the city centre and north Cardiff, alongside continued investment in active travel routes, including bus lanes and crossings on City Road.

• School Streets initiatives: Measures to improve safety around schools in Tremorfa and Ely, supported by targeted road safety improvements such as junction upgrades and speed limit reviews following the 20mph rollout.

• Bus stop enhancements: Upgrades across the city, including new shelters and improved accessibility features.

• Active travel investment: A core budget to deliver low-cost, high-impact improvements for walking and cycling.

Cllr Dan De’Ath, Cabinet Member for Climate Change, Strategic Transport and Planning, said the funding marks a new approach to regional investment:

“This is the first year that Welsh Government funding has been allocated on a regional basis through the Cardiff Capital Region. The funding announcement will help the council further improve transport across the city, with a clear priority to encourage more people to use public transport, encourage walking and cycling, so we are less reliant on private cars.

“Together, these schemes aim to make Cardiff’s streets safer, support local communities and businesses, improve public transport reliability, and encourage more people to walk, cycle and use public transport.”

Cabinet Secretary for Transport and North Wales, Ken Skates, added:

“I am delighted to confirm nearly £50 million of funding, as part of the Regional Transport Fund, for councils across south-east Wales. This is a significant milestone for the region’s transport network, as this funding will directly benefit communities across all local authority areas, delivering real improvements to people’s daily lives.

“The schemes being funded reflect priorities agreed in partnership between local authorities, the Cardiff Capital Region, Transport for Wales and the Welsh Government. This collaboration will help deliver the connected, sustainable and affordable transport system that the people of south-east Wales deserve.”

The funding represents a major step towards delivering a more integrated, sustainable and accessible transport network across south-east Wales.