NEWPORT council leader Matthew Evans said: “We are bitterly disappointed with this announcement, which is a severe blow for businesses and residents in Newport, but also along the whole M4 corridor in Wales.

“The proposal for a M4 Relief Road has always had cross party support in Newport, with our residents and businesses bearing the brunt of this totally inadequate stretch of motorway and its inability to cope with the volume of traffic travelling along it."

He said the M4 was the main economic gateway for South Wales and there were clear social and economic reasons why this road should have already been built. "We should have seen clear progress by now".

Cllr Evans added the council would need time to digest any alternatives proposed by Assembly leaders but described it has a huge letdown that the project was being ditched at a time when the economy and businesses needed all the support they could get.