PLANS to secure funding for the next stage of the Chepstow bypass proposals may have been set back after the Western Gateway transport agency – which covers southwestern England – declined to back the project.

Monmouthshire County Council and Gloucestershire County Council jointly funded the initial Welsh transport appraisal guidance (WelTAG) study at a cost of £33,839.

Both authorities are now looking to the governments in Westminster and Cardiff Bay to help fund WelTAG’s costly second phase, dubbed WelTAG2.

But according to Monmouth MP David Davies, the UK government was only willing to part-fund WelTAG2 if the Western Gateway Sub-national Transport Body listed Chepstow bypass as one of its priority schemes.

Gloucestershire County Council, which is part of the multi-agency Western Gateway group, has now confirmed the bypass scheme was not selected as a priority scheme.

In a statement, a spokesman said: “Gloucestershire County Council promoted the bypass scheme to Western Gateway, who consider that the proposals are not sufficiently developed to provide assurance of a construction start date before 2025 – which is a requirement of the available funding.

“Through our efforts, there is now recognition of the need for a scheme at Chepstow which will be considered for financial backing beyond 2025.”

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Mr Davies called the decision "bitterly disappointing".

He added: “The idea of a Chepstow bypass, linking the Forest of Dean directly with the junction of the M48 Severn Bridge, has been an aspiration since the 1960s but, historically, the issue has been neglected by all branches of government on both sides of the border – and we now have a major problem.

“Traffic bottlenecks on the A48 at Hardwick Hill and A466 have suffocated the town, while air pollution levels exceed limits set by the World Health Organization (WHO).

“With the end of tolls on the two Severn bridges and several hundred new homes planned either side of the River Wye, further development will cripple Chepstow unless these road infrastructure challenges are tackled."

Mr Davies said he hoped the UK government would still help to fund WelTAG2, and said he would be writing to the Welsh Office seeking this commitment.

Monmouthshire councillor Armand Watts said the public were "quite rightly upset".

"People make a lot of noise about the bypass but I genuinely think it's not going to happen," he added.

Speaking to the Argus, Cllr Watts said proposed housing developments had "exacerbated" Chepstow's infrastructure problems and called for more to be done to address existing issues "before we look at developing Chepstow further".

Western Gateway was contacted for comment on its decision not to give the Chepstow bypass project priority status.