The Welsh Senedd has backed calls for the UK Government to review the operation of the Barnett Formula, amid concerns that Wales has received an unfair share of rail investment.
A motion passed earlier 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 strengthen fairness and transparency.
Pressure to accelerate rail investment
The motion reaffirmed support for a UK Government commitment to a long-term Transport for Wales (TfW) rail improvement pipeline worth up to £14bn. Members called for faster delivery and sufficient funding for projects during the current spending review period.
The proposed pipeline includes new stations, safety works on the North Wales Coast Main Line and capacity upgrades on the South Wales relief lines.
The current spending review has earmarked at least £445m for Welsh rail enhancements: approximately £302m for infrastructure work, £95m for further development and £48m for improvements to the Core Valley Lines.
However, Welsh ministers and Senedd members have raised concerns about the scale of the allocation. Wales accounts for roughly 10% of the UK rail network by track length, while the Welsh Government estimates that it has received 1.5% of total UK rail investment over the past 15 years.
Calls for fairer funding arrangements
Finance minister Elin Jones said the impact of long-term underinvestment extended beyond the railway itself, linking limited rail capacity and connectivity to greater reliance on roads, congestion on routes including the M4 and higher transport emissions.
“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,” she said.
Huw Thomas, Member of the Senedd for Caerdydd Penarth, said the change of UK government in 2024 had created an opportunity for closer co-operation. He described the subsequent commitments as a potential end to what he called 14 years of neglect and underspend.
Welsh Liberal Democrat leader Jane Dodds, who has previously campaigned for a review of the Barnett Formula, urged caution over changes to the funding mechanism. She called for an evidence-based process and proposed an independent fiscal commission modelled on Australia’s Commonwealth Grants Commission.
“Reopening the formula could cost Wales as readily as it benefits,” Dodds said. “What we need is an independent fiscal commission.”
The Welsh Government is also continuing to press its longer-term objective of full devolution of rail responsibilities to Wales.