New figures reveal Wales set to lose £6bn in rail funding row

Billions lost, investment bypasses rural Wales

Wales is set to miss out on another £1.3–£1.6 billion in transport funding after the UK Labour Government confirmed Northern Powerhouse Rail will go ahead as an “England and Wales” project.

The scheme, designed to link Liverpool, Manchester and Leeds, will not include a single centimetre of track in Wales. By classifying it as “England and Wales”, the Treasury avoids triggering Barnett consequentials that would have delivered funding for Welsh rail.

It follows similar decisions on HS2, the high‑speed line between London, Birmingham and Manchester, and East‑West Rail, which links Oxford and Cambridge. Together, those projects have already cost Wales up to £4.3 billion in lost investment. Combined, campaigners say Wales could now be short by around £6 billion.

Scotland and Northern Ireland cash in

While Wales is left empty‑handed, Scotland is set to receive £2.7 billion and Northern Ireland just under £1 billion as a result of Northern Powerhouse Rail.

A Treasury spokesperson said:

“Wales will benefit from £445 million of rail investment over the next decade — the biggest ever funding boost for Welsh rail.”

Welsh Secretary Jo Stevens has also defended the classification of projects like HS2 and Northern Powerhouse Rail as “England and Wales” schemes, arguing that Wales benefits indirectly from improved connections across the UK rail network.

Welsh Government stresses cooperation

First Minister Eluned Morgan said:

“We will continue to press for further commitments, including electrification of the North and South Mainlines, which remain vital for Wales’s future.”

She added that the settlement would deliver “significant extra investment in rail infrastructure” and emphasised the need for cooperation between governments.

Opposition parties cry foul

Plaid Cymru Westminster leader Liz Saville Roberts MP said:

“Wales is owed billions from HS2 and now Northern Powerhouse Rail. Labour has failed to address chronic underfunding of our railways, and our communities are paying the price.”

Plaid Cymru leader Rhun ap Iorwerth also accused Labour of leaving Wales “short‑changed again” and said the First Minister had “no influence” over her Westminster colleagues.

Lib Dems demand devolved powers

Welsh Liberal Democrat Westminster spokesperson David Chadwick MP said:

“This Labour Government is deliberately depriving Welsh communities of billions of pounds in transport funding, whilst expecting a pat on the back for delivering crumbs.

Labour has the power to change the system and stop these funding scandals, but has made its position clear — they are happy for Wales to be left behind, paying for megaprojects in England whilst our own rail and transport infrastructure collapses.”

Mid and West Wales left behind

Local campaigners say the funding gap is most keenly felt in Mid and West Wales, where rail services remain patchy and major projects have stalled.

Carl Peters‑Bond, independent candidate for the new Caerfyrddin constituency in next year’s Senedd elections, said:

“We’re told Wales is getting investment, but Mid and West Wales see none of it. Communities from Carmarthen to Aberystwyth are crying out for rail connectivity, yet billions are being spent on lines hundreds of miles away. It’s a betrayal of rural Wales.

Both Westminster and Cardiff need to stop playing politics and start building the infrastructure our communities desperately need. People here don’t want excuses — they want action.”

West Wales line campaign highlights the gap

The row comes just days after campaigners renewed calls for funding to restore the Carmarthen to Aberystwyth rail line, axed in the 1960s.

As Swansea Bay News reported at the weekend, supporters say reopening the line would transform connectivity across West Wales, boost the economy, and cut car dependency. Campaigners argue that the billions Wales is missing out on could easily fund projects like the Carmarthen–Aberystwyth line, yet instead the money is being spent on rail schemes in England.

Creaking infrastructure, growing anger

With rail electrification stalled and public transport under strain, campaigners warn the funding gap leaves Wales at risk of falling further behind.

The row adds to growing pressure on Labour to explain why Wales is repeatedly excluded from consequential funding, while neighbouring nations benefit.

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Fresh cash call to bring back lost West Wales rail line

Traws Link Cymru, set up in 2013, wants to reinstate the route axed in the 1960s Beeching Cuts. They say poor roads and patchy rail links are choking Mid and West Wales, leaving communities cut off and opportunities wasted.

“Realising the potential of this region requires vision, planning and inward investment. But the poor communications network remains a major drawback,” the group said.

‘Kick‑start regeneration’

The campaign argues new tracks would kick‑start economic and social regeneration, opening up tourism, agriculture and small industries. They point to three university campuses, the National Library of Wales, the Royal Commission for Ancient and Historic Monuments, and S4C’s headquarters — all hampered by poor transport.

Supporters say journeys of less than 50 miles can take hours, underlining the lack of direct north‑south connectivity.

Political row over the line

The future of the route has become a political flashpoint. Plaid Senedd member, Adam Price has accused ministers of failing to act and warned the project is at risk unless the Welsh Government formally protects the corridor from development.

“It is not acceptable for the Welsh Government to essentially wash their hands of this commitment. They are dragging their feet and putting this whole project at risk.”

A feasibility study in 2018 put the cost of reopening at £775 million, but campaigners argue little progress has been made since. More recent estimates suggest the bill could rise to around £2 billion. Critics say it’s a huge price tag with no guarantee of political backing. Campaigners counter that the benefits — jobs, investment and national cohesion — would outweigh the costs.

Transport Secretary Ken Skates has pushed back, warning that land protections could harm communities.

“Putting land protections in place for the reopening of sections of railway lines can risk creating blight to landowners, it can have a potential economic cost to communities, and there would also be the obvious ongoing resourcing cost to maintain the protections.”

He added that reopening remains a longer‑term option, subject to full value‑for‑money tests.

An Aberystwyth to Carmarthen steam service arrives at Tregaron station, c.1950s. The rural halt, now long disused, once connected communities across Mid Wales before the line was closed under the Beeching Cuts.
(Image: Traws Cymru)

Local voices demand action

Community campaigner and independent Senedd candidate for Caerfyrddin, Carl Peters‑Bond, says the time for delay is over.

“This rail link should have been rebuilt decades ago. Communities across West Wales have been left waiting while investment pours into Cardiff and the Valleys.”

He said stations at Llandysul, Llanybydder and Lampeter must be part of the plan to serve towns that have been overlooked.

“People are tired of political point‑scoring. What we need now is real investment in infrastructure that connects our communities, supports local businesses, and gives young people a reason to stay in West Wales.”

Carl added that the project is about fairness as much as transport.

“If we want a stronger, fairer Wales, we need to stop talking and start building. West Wales deserves the same opportunities as the rest of the country — and that starts with laying tracks.”

Traws Link Cymru say their crowdfunding page is live at JustGiving, with donations going towards campaign costs including meetings, advertising and lobbying.

https://vimeo.com/103641050?fl=pl&fe=sh

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