Former Welsh transport minister Lee Waters has accused the UK government of failing to deliver fair rail funding for Wales. The Labour MS for Llanelli claims the current system lacks transparency and shortchanges Wales, especially in rail infrastructure investments.
Recently, a dispute emerged over the £6.6bn Oxford-Cambridge rail line. Initially, the UK Treasury classified it as an England-only project, which should have unlocked extra funds for Wales under the Barnett formula. However, officials later called this a “publishing error,” reclassifying it as an England and Wales scheme even though no tracks exist in Wales.
Waters described the situation as a “cock-up” but argued it reveals deeper flaws. He insisted, “The system needs fixing.” Unlike Scotland and Northern Ireland, Wales misses out on funding for major projects like HS2, which was controversially labeled an England and Wales initiative.
The Barnett formula decides funding allocations for devolved nations. When England receives money for devolved areas like transport, Wales should get a proportional share roughly 5.7% of England’s per capita spending. However, Network Rail’s budget operates differently, leaving Wales without consequential funds.
Waters emphasized, “We have not had our fair rail funding for Wales.” He highlighted cases where the Welsh government had to cover costs, such as national insurance contributions, that should have been paid by the UK Treasury.
Waters urged immediate reform, stating, “The UK Treasury must act for the whole UK, not just England.” He criticized both Conservative and past Labour governments for neglecting the issue. Although Labour’s manifesto promises a dedicated Wales rail fund, Waters remains doubtful.
“Wholesale devolution without proper funding is risky,” he warned, pointing to high maintenance costs. He stressed that transparency in funding decisions is crucial to securing fair rail funding for Wales.
The UK government admitted the Oxford-Cambridge line error and promised corrections in future documents. Yet, without systemic change, Wales risks falling further behind in transport investment.
For now, the fight for fair rail funding for Wales continues, with mounting pressure on Westminster to deliver long-overdue reforms.
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