‘Devolve rail infrastructure to Wales’ says Labour MS

Emily Price

The £445m worth of rail investment the Welsh Government is set to receive from the Treasury is “a good foundation” to devolve rail infrastructure to Wales, a Labour Senedd Member has said.

Chancellor Rachel Reeves announced the new funding during her spending review on Wednesday (June 11).

The cash will be spent on fixing level crossings, building new stations and upgrading existing lines across Wales.

It is understood to be a combination of direct funding and money for the Welsh Government – over a 10 year period.

The Treasury says it will form the “cornerstone” of UK Government plans to address underinvestment in critical infrastructure that has held back the Welsh economy.

‘Fair’

It came following ongoing rows over the classification of English rail projects as “England and Wales” schemes despite them not benefitting Welsh people.

Plaid Cymru, the Liberal Democrats and the Welsh Conservatives say £445m is far less than what Wales should receive for its railways after decades of under investment.

Labour MS for Blaenau Gwent, Alun Davies, says the amount is fair – but that without devolving rail infrastructure, Wales will not get the public transport system it needs.

Speaking to Nation.Cymru, Davies said: “The new funding creates a good foundation upon which to properly assess our needs and to create a long term programme of investment.

“We also need to complete the promised investment in the south Wales metro with a station in Abertillery and the same level of service on the Ebbw Valley line as is enjoyed elsewhere.

“We now need a plan to deliver the devolution of rail infrastructure which will deliver the integrated public transport system that Wales needs and which exists in every other part of the UK. “

Devolution

The operation of the railway in Wales is a Welsh Government responsibility.

But infrastructure planning and the funding of Network Rail in Wales remains reserved to the UK Parliament.

In recent years there have been ongoing calls for full rail devolution in Wales especially following the decision by the Treasury to designate HS2 as an “England and Wales” project despite not an inch of track being laid in Wales.

The financial outcome of this was that Wales was unable to receive Barnett consequential funding – unlike Scotland where infrastructure planning is devolved.

The Welsh Government has made ongoing calls for Wales to receive the money it’s owed for HS2.

Civil servants have calculated that Wales lost out on £431m in Barnett funding because HS2 was wrongly classified by the previous Conservative government in Westminster.

Labour politicians believe the £445m offered by the Chancellor more than covers what is owed.

‘Laughable’

But opposition parties say Wales is owed billions – not millions – from the high speed rail project.

Mark Barry – the architect of the South Wales Metro – also believes Wales is being short changed.

He said: “The apologetics being used around the Barnett calculation for HS2 – over just a five year period – is a little embarrassing.

“Someone needs to ask what effective Department for Transport comparability factor was used in that Welsh Government calculation.

“I suspect not anywhere near 100%. Current HS2 spend is £7bn.

“The idea that Wales is only owed circa £400m from what will likely be an £80bn HS2 project is frankly laughable.”

A fresh rail funding row was sparked earlier this month when Liberal Democrat MP David Chadwick uncovered that the Oxford to Cambridge rail scheme would be designated as an “England and Wales” project.

Reclassified

The UK Government said this was because the investment had come from a pipeline that also funded rail upgrades in Wales.

But, it later transpired that in the 2020, 2021, 2023, and 2024 editions of the UK Government’s Statement of Funding Policies, the railway line was classified as an England-only project.

The project’s designation was then altered by the new Labour government to be an “England and Wales” scheme.

The Liberal Democrats and Plaid Cymru say this reclassification will deprive Wales of an additional £360 million in consequential rail funding for its own network.

Lib Dem David Chadwick said: “Labour’s contempt for Wales just gets worse and worse.

“The indefensible decision to spread this measly amount of rail funding over 10 years not only robs Wales of what it is owed for past projects, but also guarantees that we will continue to fall behind in infrastructure spending, as major transport projects in England get the green light.

“Labour clearly has no interest in growing the Welsh economy or giving us the tools we need to thrive and attract investment into our country.”

In the Senedd on Wednesday (June 11) Plaid Cymru’s Heledd Fychan asked the Welsh Government what discussions were had with the UK Government regarding the circumstances that led to the reclassification of the Oxford to Cambridge rail link.

Cabinet Secretary for Transport, Ken Skates, did not answer the question directly.

He said: “I have regular discussions with the UK Government regarding rail funding and I am delighted that they have confirmed huge investment today to improve rail infrastructure in Wales.

“This build on our investments such as £800m on brand new trains, over £1bn on the Core Valleys Lines and of course the commencement of Network North Wales.”

It’s estimated that £1.1m of consequential funding was awarded to the Welsh Government because of the Oxford – Cambridge line’s classification as England only.

Ken Skates said the UK Government would not be looking to “claw back” this cash.