First minister blames UK government for M4 relief road costs

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Black route videoImage source, Welsh Government

First Minister Carwyn Jones has blamed delays, inflation and the UK Government for the increase in the cost of the M4 relief road.

A Welsh Government official said last week that the road is expected to cost more than £1.4bn once VAT is taken into account.

Mr Jones called on the UK government to waive the tax on the project, which he once said would cost less than £1bn.

Welsh Tory leader Andrew RT Davies said Mr Jones' answers were "awful".

The comments about the cost of the M4 relief road followed an announcement last month that the Welsh Government had committed to spending an extra £135m to improve Newport Docks.

In 2015, Carwyn Jones predicted the relief road would cost "nowhere near" £1bn.

During First Minister's questions, Mr Jones said: "The figure has certainly risen because there has been more of a delay than expected.

"But we intend to ensure that the issue of congestion on the M4 is dealt with."

Media caption,

Andrew RT Davies asked for proof the project was based on "sound finances"

He was questioned by the leader of the Welsh Conservatives Andrew RT Davies, who has called for an upper limit to be set on the cost of the project.

In response to Mr Davies, Carwyn Jones said: "Inflation unfortunately makes a difference to the figures and secondly the UK Government is charging VAT.

"Here is a challenge for him, why does he not go back to his party and say do not charge VAT for this project, that would save us hundreds of millions of pounds?"

Mr Davies said: "That is awful First Minister.

"This is your biggest infrastructure project. Negotiations on VAT are still ongoing.

"Without VAT, and these are the words of your own civil servant in that committee, the costs of this project are in the region of £1.3bn to £1.4bn.

"Only two years ago, you were trying to convince people that this project was going to come in at £800m."

The motorway project is currently subject to a public inquiry.

It has faced opposition from environmental groups and some AMs, although Associated British Ports dropped its objections after the investment was announced.

Analysis by Nick Servini, BBC Wales political editor

There appeared to be a distinct lack of supportive noise behind the First Minister when he and Andrew RT Davies locked horns about the M4 cost overruns.

It may be too great a leap to interpret that as dwindling support within Labour ranks but there must surely be concern about the escalating price tag, which inflation and VAT does not explain, despite the best efforts of Carwyn Jones.

The Welsh Conservative leader has tapped into this with his call for a price limit - nobody knows what it is, but there must be a tipping point on the cost that would shift the balance.

The Tories also have questions to answer on what their position is but it would appear that the leadership at the Senedd is beginning to ask questions about the road in a way they have not done before.