Funding row reignites calls for rail devolution and fairer investment

A ROW over rail funding has reignited tensions between the UK Government and Welsh politicians after a senior Labour minister suggested Wales should be “more grateful” for its share of the latest transport budget.

The comment came during a heated exchange in Westminster between Welsh Liberal Democrat spokesperson David Chadwick MP and Chief Secretary to the Treasury Darren Jones. Chadwick had described the latest settlement as “insulting,” arguing that Wales had been “cheated” out of billions through decades of underinvestment and funding misclassification.

In response, Jones reportedly suggested Wales ought to show more appreciation for the £445 million allocated under the UK Government’s recent Spending Review.

Lib Dems slam “gobsmackingly arrogant” tone

The Welsh Liberal Democrats branded the remarks “gobsmackingly arrogant,” accusing Labour of continuing a pattern of disregard for Wales’ transport needs. Chadwick said the funding did not begin to address structural inequalities that had left Wales short-changed, especially after being excluded from HS2-related funding.

Under the current classification, HS2 is considered an “England and Wales” project, despite having no direct infrastructure benefit for Wales. As a result, Wales has received no Barnett consequentials from the scheme—an omission estimated to have cost the country several billion pounds.

Wales received £445 million in rail funding in the latest review, compared to £2.5 billion for Manchester, which has a smaller population than Wales.

Labour: funding delivered on “strategic priorities”

Defending the settlement, Treasury officials have previously said that transport investment is allocated based on “strategic need, passenger demand, and overall UK connectivity.”

Labour representatives have also stated that the funding aims to support journey improvements, safety upgrades, and economic recovery, and have emphasised ongoing support for infrastructure projects across the UK, including Wales.

Chief Secretary to the Treasury Darren Jones said in earlier remarks that the UK Government “continues to support Welsh rail improvements” and highlighted the funding of the South Wales Metro as an example of investment delivered through UK-wide cooperation.

Welsh Government also under scrutiny

While UK Labour is under fire over the allocation model, critics have also pointed to the Welsh Labour Government’s limited delivery on rail infrastructure, despite transport being partly devolved.

The long-awaited electrification of the south Wales mainline, for instance, remains incomplete, and projects in Mid and West Wales have seen little progress. Campaigners argue that both governments share responsibility for the current state of rail in Wales.

Cross-party frustration over HS2 classification

The funding row has drawn cross-party anger in Wales. Politicians from Plaid Cymru, the Conservatives, and the Liberal Democrats have all challenged the HS2 classification and called for reform of the Barnett formula as it applies to major England-only transport schemes.

There are also growing demands for the full devolution of rail powers to Wales, in line with the settlement enjoyed by Scotland. Chadwick recently raised this again in Parliament, but the UK Government refused the request.

Uncertain future as HS2 delayed

With HS2 now delayed beyond 2033, further investment rounds are expected, yet Wales is set to remain excluded unless the current funding model changes. Meanwhile, major new English rail projects like East-West Rail continue to receive billions.

Chadwick warned that without reform, Wales would “remain stuck on a branch line of UK transport policy—literally and politically.”

“Wales is in dire need of economic investment, given our high poverty levels and the legacy of deindustrialisation,” he said. “Yet the Minister says we should be grateful for the scraps. It’s simply unbelievable.”

The full exchange can be viewed at: ParliamentLive.tv

Five new stations planned in South Wales – but funding deal excludes Barnett cash for Oxford-Cambridge line

A MAJOR new rail funding package for Wales has been unveiled by UK Labour, but Welsh Conservatives have described it as “disappointing” and say it falls short of previous commitments.

Chancellor Rachel Reeves has announced £445 million of investment in Welsh rail infrastructure over the next decade – a move hailed by Labour as the biggest boost of its kind in history. The money will support the creation of five new stations in South East Wales and deliver upgrades to the South Wales Metro and other key routes.

New stations and Metro upgrades

The planned stations include Maesglas, Somerton, Llanwern, Newport West and Cardiff East – all located along the Newport to Cardiff corridor. They were first recommended by the Burns Review into congestion on the M4 and are now expected to open by 2028, subject to planning.

Of the £445 million, £48 million has been ring-fenced over four years for the Core Valley Lines – the backbone of the South Wales Metro. A further £300 million is expected to be deployed within the next three years, including upgrades at Cardiff West Junction and enhancements to the Borderlands Line near Padeswood.

Transport for Wales launched community consultations in late 2023, hosting drop-in sessions for residents near each of the proposed station sites. TfW says up to four trains per hour could serve the new stations, including cross-border services to Bristol and Cheltenham.

Conservative criticism

Welsh Conservatives have criticised the announcement as underwhelming. They point out that under the previous UK Government, over £1 billion was spent on rail in Wales between 2014 and 2024 – and that a further £1 billion was pledged for electrification in North Wales.

The Welsh Conservative Shadow Cabinet Secretary for Finance, Transport and Infrastructure, Sam Rowlands MS, said: “I have said time and time again that the rail services provided in North Wales are simply not good enough and my constituents deserve so much more. This latest funding announcement clearly is not enough.”

Barnett formula controversy

Rowlands added that he was “deeply concerned” by the decision to classify the £6.6 billion Oxford-Cambridge railway scheme as an “England and Wales” project – a move which means Wales will not receive any consequential funding via the Barnett Formula.

“The reclassification means Wales misses out entirely,” he said. “This is extremely disappointing and raises serious questions about whether the Welsh Government fought for a better deal.”

The Herald understands that the Welsh Conservatives have written to both the First Minister and the Secretary of State for Wales seeking an explanation for the decision.

Labour defence

Labour has defended the package, saying it represents a turning point after years of “neglect and underinvestment”. They say the funding will reduce car dependency, open up commuter access, and create jobs linked to construction and long-term rail operations.

Speaking in Parliament, Chancellor Reeves said the funding was part of “undoing a generation of neglect” and would deliver “real gains” for Welsh communities that have waited decades for reliable rail links.

However, no specific construction start dates have been confirmed, and questions remain over the North Wales Main Line, which was promised electrification funding under the previous government but is not specifically included in the new settlement.

Stakeholder reaction

Transport for Wales reports that consultation events for the five proposed stations were well attended and that demand for frequent, reliable services remains high. The plans include integrated park-and-ride facilities and improved active travel links to the sites.

Meanwhile, the TSSA rail union has welcomed the funding but warned that it will not go far enough. “£445 million over a decade simply will not get things done in Wales,” a spokesperson said. “To put that in perspective – Manchester alone is receiving £2.5 billion in new rail investment.”

The union added that since 2001, the UK has spent over £100 billion on rail enhancements, with Wales receiving just £2.2 billion – despite having around 11 per cent of the UK rail network by track mileage.

Future projects and next steps

The UK Government also says the Global Centre of Rail Excellence near Onllwyn remains on track to open in 2025, following joint UK and Welsh government investment totalling over £78 million.

With a general election approaching, the future of rail in Wales is now a battleground issue – and political rows over project classification, regional equity and long-standing underinvestment show little sign of fading.

Major floating wind announcement hailed by ministers, but concerns grow over job downgrades and delays to Pembrokeshire impact

A MAJOR offshore wind announcement hailed as a “generational opportunity” by UK ministers has prompted fresh hope — and renewed scepticism — in Pembrokeshire.

The UK Government this week revealed the developers chosen to build vast floating wind farms off the coasts of south Wales and south-west England. The Crown Estate is investing £400 million in supply chain infrastructure, and thousands of jobs are expected across Wales and the south-west.

While the ports of Port Talbot and Bristol were named as key assembly sites, Milford Haven’s Freeport backers say the Pembrokeshire coast must not be overlooked. They argue that the deepwater harbour, renewable skills base, and new freeport status make it an ideal location for marine logistics, fabrication and long-term operations support.

Tom Sawyer, Chief Executive of the Port of Milford Haven, said: “We stand ready to deliver – our port is already geared toward supporting floating wind and marine energy. This is a real opportunity to anchor new industry here in west Wales.”

However, industry insiders are sounding a note of caution. The Herald understands that some of the jobs originally described as high-skilled green roles may instead be lower-wage or short-term posts. Sources close to the development process said training packages had been scaled back and that many specialist components could still be imported from abroad.

“There’s a risk this becomes another case of promises made, but not delivered locally,” said one port engineering source. “We need to see turbine towers being built here, not just components shipped through.”

First Minister Eluned Morgan said she would be “picking up the phone” to companies involved, urging them to maximise Welsh jobs. But questions remain over how many roles will be based in Pembrokeshire — and when.

Despite the upbeat tone from ministers, the floating wind farms are not expected to be operational until the early 2030s. That means any serious benefits to the west Wales economy could still be five to ten years away.

The Welsh Conservatives have welcomed Labour’s latest announcement on offshore wind energy but criticised the lack of detail and guarantees surrounding its implementation.

Welsh Conservative Shadow Cabinet Secretary for the Economy and Energy, Samuel Kurtz MS, said: “The Welsh Conservatives have long championed the potential of floating offshore wind in the Celtic Sea. While today’s announcement represents just a small step within a broader strategy first advanced by the previous UK Conservative Government, it is nonetheless a welcome development.

“To truly seize this opportunity and unlock the full economic potential for Wales, it is essential that Welsh ports are placed at the forefront for the assembly, operation, and maintenance of these wind farms. This must be supported by a coordinated effort to ensure a skilled local workforce, and a resilient supply chain are in place, without which the promised prosperity and job creation will remain out of reach.”

Local sustainability campaigner Andy Middleton also welcomed the announcement, but warned: “This is fantastic news for future generations — but we must hold decision-makers to account. Pembrokeshire can’t afford to be left behind while the big money and the big contracts go east.”

Welsh Liberal Democrat Leader Jane Dodds MS said: “New jobs are always welcome, especially in areas like Port Talbot, but as long as Labour refuse to devolve the Crown Estate to Wales, the money raised from these renewable projects will continue to flow out of Wales and go directly to London instead of directly benefiting Welsh communities.

“I’m also worried that the Government hasn’t done enough to promote a supply chain for wind turbines that benefits Welsh workers, with most of the components for turbines being imported from Germany and Denmark rather than being manufactured here in Wales.”

The Milford Haven Freeport was launched earlier this year, with a mission to create thousands of skilled green jobs. But critics argue that until major manufacturers or anchor tenants commit to west Wales, the full promise of the freeport remains unfulfilled.

Meanwhile, the political battle over control of the Crown Estate continues. In Scotland, control of the seabed has been devolved, allowing profits to be reinvested locally. In Wales, the revenue still flows to the Treasury in London — a situation Plaid Cymru and Welsh Labour have both challenged.

Welsh Secretary Jo Stevens said this week’s announcement was “vindication” for keeping control in Westminster. But Pembrokeshire campaigners say it is time for local communities — not just governments — to see meaningful returns.

RenewableUK Cymru: This technology can transform Wales’ fortunes

Director of RenewableUK Cymru Jessica Hooper said: “We welcome this announcement of the first two large-scale floating wind sites in the Celtic Sea, as this technology has the potential to be transformative for the Welsh economy. Wales is poised to play a leading role in offshore wind. Over the next decade alone, there is up to £32 billion in economic value at stake, a £4.8 billion opportunity for Welsh businesses, alongside more than 3,000 well-paid jobs..

“Despite challenging market conditions, we’re pleased to see a successful outcome for Equinor and Gwynt Glas — a joint venture between EDF Renewables UK and ESB — marking an important first step in building a much-needed pipeline of projects in the Celtic Sea. To maximise the benefits of this technology and the investment in local facilities and supply chains we need long-term visibility on future leasing rounds and support in the upcoming clean power auction to start building out projects in Welsh waters and across the UK This will provide certainty for developers and investors to scale up new floating wind supply chains and ensure that workers have the right skills to make Wales a world leader in this cutting-edge technology”.

RenewableUK’s Deputy Chief Executive Jane Cooper said: “Awarding leases to the first two sites for floating wind projects in the Celtic Sea marks a significant step forward for this innovative technology which is set to play a major role in the UK’s future clean energy mix. Ports in south Wales and the south west of England have the potential to manufacture and assemble floating turbines, including giant platforms the size of football pitches, creating thousands of highly-skilled jobs. There will also be long-term opportunities in operations and maintenance, supporting local supply chains and providing sustained employment throughout the lifecycle of these projects.”

“But this is just the start – the UK already has one of the largest floating project pipelines in the world, so we have an opportunity to deliver green economic growth at scale. Our analysis shows that by 2050, floating turbines could provide a third of the UK’s offshore wind capacity with 40 gigawatts fully operational – enough to power every home in the country. By then, our research shows that the UK’s floating wind industry could employ 97,000 people, contributing £47 billion to our economy by building and supplying projects here as well as exporting our cutting-edge technology worldwide”.a

Award a significant milestone

The award of two 1.5 GW seabed leases in the Celtic Sea to Equinor and Gwynt Glas is a significant milestone—but it’s just the first step in a much longer process. For Milford Haven, the key takeaway is that the region now has a real opportunity to secure integration-port status—converting the nearby lease into tangible economic benefits.

The Port of Milford Haven, part of the Celtic Freeport, is already eyeing test-phase and commercial-scale roles through its FLOWMIS-backed upgrade of Pembroke Port.

If successful, that would position Milford Haven to host assembly, operations, and servicing of these floating turbines, generating long-term skilled jobs into the 2030s. However, this hinges on winning a formal role in the supply chain, securing funding, and translating seabed rights into local contracts—an outcome still to be determined.

Photo caption:
Waiting for take-off: Milford Haven Freeport could benefit from offshore wind – but how many jobs will really come to Pembrokeshire? (Pic: Herald)