The 海角视频 Government has acknowledged that Wales has lost out on rail funding for a number of years in what Wales' First Minister has said is a "massive step forward". In a letter seen by BusinessLive, two 海角视频 government ministers admit there has been underfunding and agree to prioritise investments in Wales.
However, the letter does not give details of the amount money of which would fund any projects in Wales nor does it make any promise in providing funding for the rail network in Wales that is equivalent to the amount spent per person in England.
The letter sent by 海角视频 Government Transport Minister Heidi Alexander and Secretary of State for Wales Jo Stevens is in response to a letter from Wales' transport minister Ken Skates. Their letter reads: "We recognise that railways in Wales have seen low levels of enhancement spending in recent years, particularly in the context of major investments such as HS2, and that this makes it more difficult to realise the modal shift needed to sustain a continuous enhancements pipeline."
It says: "In seeking to address this, we agree with the Board's assessment that our priority should be focused on the key recommendations of the Transport Commissions for North and South-East Wales, and the Union Connectivity Review."
These recommendations include the creation of new stations on the south Wales mainline to alleviate congestion on the M4.
However, the letter also includes a warning that chancellor Rachel Reeves has been clear about the "position of the public finances" but it says that "critical infrastructure" needs to be "unlocked". The letter adds that: "The prioritisation of rail service improvement projects proposed by the Wales Rail Board, and described in this exchange of letters, will therefore inform both departments' work with HM Treasury in the run up to the spring Spending Review."
Referring to those projects, it says: "These proposals, based around the north and south Wales main lines and the Wrexham to Liverpool Borderlands line, will have the ability to drive economic growth, job creation, house building, and improved social cohesion, subject to satisfactory business cases being completed. Better cross-border connectivity on these key corridors should better serve the overall economic and social needs of the whole of the 海角视频," it reads.
"With the Wales Rail Board having proved to be an effective vehicle for inter-governmental collaboration, we agree that its role should be affirmed and expanded in relation to the governance of rail investment in Wales.
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The First Minister was asked about rail funding on the Radio Wales phone in with Jason Mohammed on Wednesday morning. Referring to HS2, she said: "They have poured money into that in England, and for some reason they classified it as an England and Wales project even though not one inch of track was laid in Wales, that for me is a fundamental injustice."
Mrs Morgan said: "For the first time, the 海角视频 Government has recognised that we have been underfunded. That's the first time they've actually admitted this. It's a letter we've had from Heidi Alexander who is the transport secretary, saying, 'okay, we get it, something's not right here' and now there is a discussion now about how we're going to what do we get."
She said: "It's the first time in 14 years they said, 'alright, we get it'. Now it's about what are we going to do about it? Where are your projects so we can invest. Those conversations have already started. We've got a long list of projects."
Asked by host Jason Mohammad how it would be spent, she said: "It'll probably be in the shape of new stations and investment in the rail infrastructure, which they are responsible for, don't forget".
Asked where the stations would be, the First Minister said: "We've got a long list of things to do". "The whole point is this will be money specific for rail, because we've been hard done by," she said. When asked how much it would be, she could not specify but said "I'm hoping it's going to be significant."
"Let's not exaggerate the HS2 thing. People have been flinging big numbers around. Let's not forget that the HS2 thing as a whole was not built So you've got to go to 'where did they actually spend the money' and what proportion [we get]. We get about 5% of what they would have built, that's what our calculation [is], 5% of how much money was actually spent. We want that as a minimum, but we haven't got there yet. We haven't got to the numbers, but I can't tell you what a massive step forward this is, for the first time, they're recognising 'you've been hard done by'." For our free daily briefing on the biggest issues facing the nation, sign up to the Wales Matters newsletter here
In his letter to the 海角视频 government, Mr Skates says: "The Wales Rail Board has proposed that our immediate priority should be to develop and deliver the recommendations of the North Wales and South East Wales Transport Commissions, led by Lord Burns".
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He lists priorities as:
- In North Wales, the focus will be on improving rail services along the Borderlands line between Wrexham and Bidston and on the North Wales Mainline - unlocking capacity through Chester station. This will include working jointly with Liverpool City Region to continue the development and delivery of a Metro style service directly connecting Wrexham and Liverpool.
- In South East Wales, the Burns proposals include upgrading the relief lines between Cardiff and the Severn Tunnel, and the development of five ‘Burns stations’ in Cardiff East, Newport West, Somerton, Llanwern and Magor and Undy.
Mr Skates adds: "I am aware that a detailed review of the overall GB rail enhancements pipeline is underway. Once this work is complete in late spring, I look forward to the opportunity to jointly set out next steps on our immediate rail enhancement priorities for Wales and how our pipeline in Wales will be delivered".
Plaid Cymru however says the First Minister has misrepresented the contents of the letter. Llyr Gruffydd MS said: "The First Minister has clearly been reading a very different letter to what we've read. It doesn't reference the unfairness of HS2 nor does it say Labour will right the wrong of the full £4bn consequential owed to Wales. Eluned Morgan is conflating two very different issues.
"If Labour were serious about giving Wales fair play, then they would give us the full £4bn we are owed, just as they said they would.
"Our railways are underfunded and are in desperate need of investment. The only way to deliver the rail network Wales needs is to give our country full power over our railways - just like Scotland has. This would make sure we avoid the injustice of HS2 from ever happening again."