The UK Government has launched a significant move to devolve control of local railways to mayoral regions in England, while simultaneously and firmly rejecting longstanding calls for similar powers to be handed to Wales.
English Regions Invited to Take Control
Following its English Devolution White Paper, Westminster is now actively seeking bids from mayoral strategic authorities (MSAs) across England. These authorities can apply for full statutory and financial responsibility for local rail services, infrastructure, and stations. The government stated that MSAs can pursue this devolution under existing laws, such as the Railways Act 1993.
The proposed new public body, Great British Railways (GBR), will retain overarching national responsibility. However, it is mandated to work closely with devolved English authorities to integrate local input into the wider network. The Department for Transport (DfT) praised existing devolution in London and the Liverpool City Region as a positive model for England's railway landscape.
Wales Left with a Funding Gap and Limited Powers
This policy stands in stark contrast to the position in Wales. Despite repeated requests from the Welsh Government for the devolution of rail infrastructure, the UK Government has not offered a similar deal. The financial implications are severe.
In the summer 2024 spending review, Chancellor Rachel Reeves announced £34 billion for rail enhancement projects in England up to 2029/30. For Wales, the equivalent figure was £455 million. After accounting for previously announced projects like the Cardiff Central upgrade, Wales is left with roughly £300m for new enhancements over the period.
This creates a funding ratio of approximately 100:1 between England and Wales, despite Wales having nearly 10% of the combined rail network. The disparity is exacerbated by changes to the Barnett Formula. The comparability factor used to calculate Wales's budget share from DfT spending has plummeted from around 90% to just 33.5%, largely due to the inclusion of HS2 and Network Rail expenditure. Scotland and Northern Ireland are unaffected, with comparability remaining near 100%.
Welsh ministers have stated they would only accept devolved rail responsibility with a fair funding settlement that addresses historical underinvestment. They also seek UK Government liability for major unforeseen events.
Political Opposition and Calls for Equality
The proposed Railways Bill, which would establish GBR, has drawn fierce criticism from Welsh political parties. Unlike the statutory arrangements for Scotland, the bill offers Wales only a memorandum of understanding with UK ministers, not substantive legal powers.
Plaid Cymru's transport spokesperson, Ann Davies, argued the bill "fails Wales" by not addressing its lack of control over infrastructure. She highlighted the broken promise to electrify the South Wales Main Line beyond Cardiff and noted that Scottish ministers have real influence over GBR, while Welsh ministers can merely "ask to be consulted."
Welsh Liberal Democrat MP David Chadwick called the bill a centralisation of power that ignores decades of underinvestment, leaving rural communities behind. "Scotland gets real control over its railways; Wales gets nothing," he stated.
Even the Welsh Government's own director of transport, Peter McDonald, told a Westminster committee that the bill is "neutral" on devolution. It reflects the current settlement and improves how it operates but does not advance Wales further along the devolution spectrum.
A DfT spokesperson defended the government's position, stating that Transport for Wales services are already devolved, while infrastructure remains a UK responsibility. They pointed to the £445m of rail funding for Wales and emphasised that the bill formalises joint working without removing existing Welsh powers.
The legislation, which could take effect in summer 2025, leaves the fundamental dispute over funding, control, and parity within the UK's rail network unresolved.
