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.
Related stories from Swansea Bay News
Fresh cash call to bring back lost West Wales rail line
Campaigners launch crowdfunding bid to reopen the Carmarthen–Aberystwyth line, as Senedd row intensifies.
MP calls for devolved rail powers after £6.6bn project delivers nothing for Wales
David Chadwick MP demands rail powers for Wales after East‑West Rail confirmed as “England and Wales” scheme.
Chancellor’s £445m for Welsh rail investment criticised as “measly”
Rachel Reeves’ pledge of £445m over ten years branded inadequate compared to billions for Scotland and NI.
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