Chancellor Rachel Reeves to unveil £445m rail investment in Wales after ‘decades of underinvestment’
Chancellor Rachel Reeves to unveil £445m rail investment in Wales after ‘decades of underinvestment’
Chancellor Rachel Reeves is poised to announce a major infrastructure investment package for Wales as part of the UK Government’s Plan for Change, with a commitment to spend at least £445 million on rail upgrades across north and south Wales, Businessin Wales has been told.
Set to be confirmed in today’s Spending Review, the funding will target critical transport improvements aimed at enhancing connectivity between cities, towns, and key industrial hubs. The projects are designed to unlock economic potential across Wales and form a central part of the government’s strategy to stimulate regional growth.
The planned investment includes a mix of direct UK Government funding and financial allocations to the Welsh Government. Key priorities include fixing level crossings, constructing new railway stations, and upgrading existing rail lines to improve journey times and capacity.
A Treasury source Businessin Wales the announcement was “truly transformative” for Wales, saying: “With this Government, Wales will thrive, and the Chancellor has prioritised bringing forward a package that has the potential to be truly transformative.”
The investment marks a renewed phase of cooperation between the UK and Welsh Governments, with both administrations said to be working “in lockstep” to deliver infrastructure improvements that directly benefit working people across the country.
This new strategic rail funding addresses long-standing concerns about underinvestment in Welsh infrastructure, particularly in transport links essential for economic development. It is said the Chancellor’s decision to prioritise Wales in the Spending Review underlines the government’s broader commitment to driving inclusive growth across all regions of the UK.
The Welsh rail programme is expected to support advanced manufacturing centres and improve access to labour markets, with a knock-on effect for productivity and private sector investment. Further details on the individual projects and delivery timelines are expected to be unveiled during the full Spending Review announcement.
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Commenting, Leader of the Welsh Conservatives in the Senedd, Darren Millar MS, said: “This spending review is a kick in the teeth to the people of Wales, who have been taken for granted by Labour for far too long.
“The promised rail investment falls well short of the £1bn plus in rail funding planned by the previous UK Conservative Government for the electrification of the North Wales line.
“And it is disappointing that there is no extra cash to enable either the delivery of an M4 relief road or upgrades to the A55 and A40 trunk roads.
“Whether it’s the Family Farms Tax, the Jobs Tax, or today’s spending review, Eluned Morgan in Cardiff Bay and Keir Starmer in Westminster have failed, forgotten and fleeced the people of Wales.”
Also, responding to the announcement, Plaid Cymru’s spokesperson on Finance, Heledd Fychan MS said: “£445m is merely a drop in the ocean compared to the billions Wales is owed on rail, and what Labour – up until they came into power – used to agree with us on.
“The people of Wales have seen this injustice for what it is – Wales being short changed by successive Westminster governments. This announcement won’t change that.
“Unlike ambitionless Labour who will settle for less to save Starmer’s blushes, Plaid Cymru will keep demanding that Wales is given every penny its owed and for the full powers over our rail infrastructure.”
