10-06-2025
Wales tipped to get £445m for rail projects in Spending Review this week
UK Government is set to announce £445m for rail projects in Wales. Chancellor Rachel Reeves is expected to make the announcement at the Spending Review on Wednesday.
This comes after a week in which the UK Labour Government has been under attack from Plaid Cymru and other opponents over its decision to classify a new rail line between Oxford and Cambridge as a England and Wales project. This means that any money spent on it will trigger extra payments to Scotland and Northern Ireland so they can spend it on their transport systems, but not Wales.
But North Wales Live understands that there will be a boost for rail in Wales at the review - aimed at driving growth.
At least £445 million is set to be spent on rail projects in north and south Wales to enhance connectivity between cities, towns, and centres of advanced manufacturing. The money will be spent on fixing level crossings, building new stations, and upgrading existing lines, and is understood to be a combination of direct funding and money for the Welsh Government.
Last month the Welsh Government announced a 15 point plan to improve rail services in North Wales but there were questions over how it would be funded.
A Treasury source said: 'With this Government Wales will thrive, and the Chancellor has prioritised bringing forward a package that has the potential to be truly transformative.'
A source said the strategic rail investment forms the cornerstone of a UK Government plan to address decades of underinvestment in critical infrastructure that has held back the Welsh economy.
But a Plaid Cymru spokesperson on Transport attacked the UK Government for its decision to reclassify the £6.6bn East West Rail as an England and Wales project.
Peredur Owen Griffiths MS said: 'The UK Labour Government's decision to reclassify the Oxford to Cambridge rail link as an England and Wales project is one of the most egregious examples of the Westminster government working against the best interests of the people of Wales.
'Despite the project being previously classified as an England project in the 2020, 2021, 2023 and 2024 editions of the UK Government's Statement of Funding Policies, meaning Wales received a consequential – Labour have moved the goal posts and is now choosing to deny Wales much needed investment.
'For all we know, this decision could result in Welsh rail projects losing out or not happen at all because of Wales being denied its share of funding."
