Members of the Welsh Senedd have backed calls for the UK Government to accelerate rail investment in Wales and give Welsh ministers greater flexibility over funding from Westminster.
A motion moved this week calls on the Welsh and UK governments to improve fiscal flexibility, including removing restrictions on the Wales Reserve. It also seeks a review of the Barnett Formula to improve fairness and transparency.
Rail funding at the centre of dispute
The motion reaffirmed support for a long-term rail improvement pipeline worth up to £14bn, developed with Transport for Wales (TfW), and called for faster delivery and sufficient funding for projects during the current spending review period.
The UK Government has said the pipeline could include new stations, safety work on the North Wales Coast Main Line and capacity upgrades on the South Wales relief lines.
However, the Welsh Government has highlighted a much smaller allocation for rail enhancements during the current spending period. At least £445m has been earmarked for Welsh rail, comprising about £302m for infrastructure work, £95m for further development and £48m for improvements to the Core Valley Lines.
Wales accounts for roughly 10% of the UK rail network by track length, while the Welsh Government says it has received about 1.5% of total UK rail investment over the past 15 years. Ministers say the disparity is driving negotiations with the Department for Transport over a funding settlement that better reflects Wales’s needs.
The Welsh Government is also maintaining its longer-term objective of full devolution of rail responsibilities.
Ministers call for stronger transport links
During the debate, Senedd cabinet minister for finance Elin Jones said long-term underinvestment had affected communities beyond the railway itself.
“Insufficient rail capacity and connectivity have limited travel choices for many communities, contributing to greater reliance on road transport, increased congestion on key routes such as the M4 higher transport-related emissions,” she said.
“Strengthening rail infrastructure is, therefore, not simply about improving train services; it is about creating a more resilient, sustainable and integrated transport network for Wales as a whole.”
Huw Thomas, Member of the Senedd for Caerdydd Penarth, said the change to a Labour UK Government in 2024 had created scope for closer co-operation, while arguing that previous underinvestment remained a factor.
“For too long, our rail infrastructure has been prevented from reaching its potential by successive Conservative governments in Westminster that failed to invest in Wales,” he said.
Thomas said collaboration between the UK and Welsh governments had led to commitments to what he described as historic levels of rail investment and a doubling of the long-term plan for Welsh rail.
Caution over Barnett changes
Welsh Liberal Democrat leader Jane Dodds, who has previously campaigned for a review of the Barnett Formula, warned against making rushed changes.
“Reopening the formula could cost Wales as readily as it benefits,” she said, arguing for a “rigorous, evidence-based process”.
Dodds proposed an independent fiscal commission, modelled on Australia’s Commonwealth Grants Commission, to provide external oversight of disputes over funding decisions.
“At present, the Treasury acts as judge, jury and executioner in disputes,” she said. “When the same decision goes against Wales twice and no-one outside the Treasury can overturn it, that is not an error, it is a flaw in the design.”