New rail rip-off looms for Wales

Martin Shipton

Wales is facing the prospect of being robbed of further rail funding as once again a new line built entirely in England seems likely to be designated an “England and Wales” project by the UK Government.

Previous rail projects, notably HS2, have been given the same designation, thus robbing Wales of billions of pounds under an arrangement where devolved nations get top-up funding from the UK Treasury when money is spent on England-only projects.

The latest rail route which seems likely to be designated “England and Wales” is a planned line from Birmingham to Manchester that goes nowhere near Wales.

Plaid Cymru’s transport spokesperson Ann Davies raised the funding issue in the House of Commons. Addressing Transport Secretary Heidi Alexander, she said: “Today’s announcement directly affects Wales given that the Northern Powerhouse rail is a project that Wales is footing the bill for, alongside HS2 and Oxford-Cambridge Rail.

“Although I am delighted for my northern friends that they are getting this, the price tag owed to Wales runs up to around £6bn. Yet the government expects us to be satisfied with £445m over 10 years that we are having in Wales instead.

“So how much longer does the Secretary of State think this farce can go on? Isn’t it time that rail was devolved, so that funding can be directed back towards the people of Wales, instead of any other project which is classified as ‘England and Wales’?

Ms Alexander responded: “The £445m investment that was announced at the spending review is historic and we do recognise there has been underinvestment in Welsh infrastructure. This is really significant investment; it will deliver new stations, faster journeys, and better services for passengers, as well as connecting people to jobs and driving economic growth.”

Later Ann Davies said: “Once again, major new rail investment in England will be announced by this UK Labour Government, while Wales is left with nothing. The commitment to Northern Powerhouse Rail will be welcomed by those keen to see economic growth for parts of England beyond London, but it once again exposes Labour’s continued neglect of Wales.

“The Secretary of State for Wales has acknowledged that Welsh rail has suffered from decades of chronic underfunding by Westminster. Yet, just as with HS2 and the Oxford–Cambridge line – both misleadingly classified as ‘England and Wales’ projects despite not coming anywhere near Wales – Labour are choosing to deny Wales the billions we are owed. Instead, this UK government expects us to be grateful for the pitiful sum of £445m that we are receiving over a period of 10 years – less than 10% of what is owed to Wales.

“Plaid Cymru will not stop fighting for fairness and justice. Labour must right past wrongs and devolve rail powers to Wales, so we can properly invest in our own infrastructure and stop being treated as an afterthought.”

HS2

A previous plan to extend HS2 between Birmingham and Manchester was scrapped by Rishi Sunak’s Conservative government in October 2023 to save money.

Describing the new scheme, the Treasury said it wants a new Birmingham-Manchester rail line but that it would not be “a reinstatement of HS2”.

No timescale was provided on when it would be built.

Land between Manchester and Birmingham previously obtained for HS2 will be held onto while the project is developed.

A new line would ease pressure on the West Coast Main Line. But the Treasury said it would not be open until after the completion of Northern Powerhouse Rail (NPR), a scheme to boost east-west rail connections across northern England.

Prime Minister Sir Keir Starmer said the government was “rolling up its sleeves” to deliver NPR.

The first phase of the programme would improve connections on existing lines in the 2030s on the following routes: between Sheffield and Leeds; between Leeds and York; and between Leeds and Bradford.

It was chosen as the opening stage of the scheme as it does not require major new land acquisitions.

A second phase of NPR would involve a new route between Liverpool and Manchester via Manchester airport and Warrington, using a combination of new and existing lines.

The third and final phase involved better connections eastwards from Manchester to Leeds, Bradford, Sheffield and York.

There is money for a new station for Bradford.

Chester

Regular services would run on to Newcastle via Darlington and Durham, and Chester for North Wales connections.

Development work would also be taken forward on reopening the Leamside Line, a 21-mile route between Pelaw, Gateshead, and Tursdale, County Durham, which was closed in 1964.

The Treasury said a “funding cap” of £45 billion would be set for NPR, although this could be topped up by local contributions, such as through increased revenue from business rates.

An initial £1.1bn for development and design work would be available to enable the creation of a “detailed delivery plan which will include timings”, the Treasury said.

Sir Keir said: “Over and over again, people in northern communities, from Liverpool and Manchester to York and Newcastle have been let down by broken promises.

“This cycle has to end. No more paying lip service to the potential of the North, but backing it to the hilt.

“That’s why this Government is rolling up its sleeves to deliver real, lasting change for millions of people through Northern Powerhouse Rail: a major new rail network across the North that will deliver faster, more frequent services.”

NPR is the focus of the Government’s wider Northern Growth Strategy, which will be published in spring and aims to provide better jobs, more homes and increased investment in the region.

‘Economic growth’

Chancellor Rachel Reeves said: “If economic growth is the challenge, investment and renewal is the solution.

“That’s why we’re reversing years of chronic underinvestment in the North.

“Our transformative plans will create jobs, build homes and unlock opportunities for businesses to invest.”

Greater Manchester Mayor Andy Burnham said: “Finally, we have a Government with an ambitious vision for the North, firm commitment to Northern Powerhouse Rail and an openness to an underground station in Manchester city centre.”

He added: “Today marks a significant step forward for Greater Manchester.

“We’ll now work at pace to prove the case for an underground station and work up detailed designs for the route between Liverpool and Manchester.”

But the Conservatives accused the government of “watering down” Northern Powerhouse Rail, saying ministers had “put back any plans to actually deliver it and rewritten timetables on the fly”.