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.