Westminster Government Rejects Rail Devolution Amendment for Wales
The UK Government has once again rejected calls to devolve rail powers to Wales, despite a renewed push from First Minister Eluned Morgan for what she described as a "new chapter for devolution." This decision came through the rejection of a Liberal Democrat amendment to the Railways Bill, which would have transferred rail authority to Wales within two years.
First Minister's Vision for Full Devolution
In a keynote speech delivered last week, First Minister Eluned Morgan outlined her vision for comprehensive devolution, calling specifically for:
- Full devolution of rail infrastructure and services
- A fair block grant adjustment from Westminster
- Additional devolution of the Crown Estate, policing, and youth justice
While the First Minister did not specify a precise timeframe for these changes, her speech marked a significant public commitment to expanding Welsh autonomy in key policy areas.
The Funding Disparity Challenge
The current funding arrangement presents a substantial challenge for Wales. Because rail projects are considered on an England and Wales basis, any increase in Department for Transport spending—primarily driven by rail enhancement projects—results in Wales receiving only 33.5% of comparable funding through Barnett consequentials.
This stands in stark contrast to Scotland and Northern Ireland, which receive close to 100% (95.6%) of comparable funding. With approximately £40 billion worth of rail projects identified in England up to 2040, including further investment in High Speed Two from London to Birmingham, Wales faces losing billions of pounds in potential funding over the long term due to this structural disadvantage.
The Liberal Democrat Amendment and Government Response
Welsh Liberal Democrat Westminster spokesperson David Chadwick, MP for Brecon, Radnor and Cwm Tawe, tabled the rejected amendment clause. The proposal called for rail devolution to Wales within two years through the new Railways Bill, which will create publicly-owned Great British Railways (GBR) to oversee both rail infrastructure and train services as existing contracts expire.
During committee debate, Under-Secretary of State for Transport Keir Mather made the government's position clear, stating: "The bill as drafted has the full support of the Welsh Government and preserves the existing devolution settlement. It already enhances joint working, improves accountability and safeguards the benefits of an integrated cross border railway."
Mr Mather emphasized that the approach would be supported by a memorandum of understanding between UK and Welsh ministers, setting out arrangements for cooperation on cross-border services and infrastructure interfaces without requiring statutory transfer of reserved rail functions.
Political Reactions and Expert Analysis
David Chadwick responded critically to the government's position, stating: "Labour Ministers have now put it on the record that they do not support devolving rail to Wales. That tells you everything you need to know about how seriously Labour takes devolution when it actually matters."
He added: "The First Minister speaks about a 'new era of devolution', but she can't even get her own MPs to back her. Everything outlined in her speech is empty rhetoric unless that changes."
When asked whether the Welsh Government's support for the bill contradicted the First Minister's call for rail devolution, Cabinet Secretary for Transport and North Wales Ken Skates explained: "We have been working closely with the UK Government in the development of the Railways Bill which will modernise and improve rail services. The devolution of rail services is a process, and we believe there are a number of key issues to be addressed before full devolution is sought."
Academic Perspective on the Limitations
Professor Mark Barry of Cardiff University, who has submitted evidence on the legislation, offered a critical assessment of the current arrangement: "The bill is in reality limited to requiring the UK Government and DfT ministers to consult Wales. However, without substantive statutory underpinning, this is just empty and leaves Wales short changed and without sufficient levers to fund and implement its own transport policy."
Professor Barry highlighted the contrast with Scotland, where ministers can prepare their own long-term rail strategy and produce statutory high-level output specifications for Network Rail—powers devolved since 2005. In contrast, Welsh ministers can only request that Wales's requirements be considered in an "England and Wales" strategy.
Over the last decade, Professor Barry has consistently advocated for rail devolution to Wales with a fair funding formula that addresses years of underinvestment in the Welsh rail network, arguing that the current system fails to provide Wales with adequate control over its transport future.
