Nationalisation of the railways in Great Britain was the primary transport element in the Labour manifesto for last year’s general election. Legislation has been passed in Westminster for that to happen and as part of the process a public consultation exercise is underway.
Rail services in Wales are currently operated by five companies and effectively nationalised already. Transport for Wales Rail owned by Welsh Government; Great Western Railway, Avanti West Coast and CrossCountry Trains operating under contract (previously franchised) to England’s Department for Transport. Rail infrastructure in Wales (except Valley Lines north of Cardiff) is owned and operated by 海角视频 government owned Network Rail.
Improving any business requires appropriate levels of investment, cost control, revenue increases and a product which is attractive to the market – in the railways case, passengers. Getting these right is the challenge.
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Ken Skates, our Cabinet Secretary for Transport, has set out his stall. In September 2024 he told the Senedd (and the 海角视频 Government) that Wales needs “an empowered Wales and Borders business unit within Great British Railways (GBR)” – a GBR Cymru that delivers Welsh priorities and is properly accountable to Welsh Ministers and to this Senedd’.
That is strong stuff, but is it sufficient for the best funding levels for capital and revenue support and for meeting the requirements of Welsh Government’s transport strategy Y Ffordd Ymlaen?
Until now there has been no direct statutory link between Welsh Government and Network Rail (the rail infrastructure provider). GBR Cymru will become the business unit which, along with other business units in England, will be allocated capital funding by the GBR central board. Its infrastructure strategy, priority setting and funding will continue to be determined by the Secretary of State for Transport in Whitehall. This cannot be satisfactory as on that basis there would have been no Valley Lines electrification.
The consultation paper says that the 海角视频 Government will “involve the Welsh Government in the creation of the High-Level Output Specification (HLOS)” – the basis of network enhancement funding. Scottish ministers by contrast will continue to deliver the HLOS and the funding statement for the Scottish network. Wales needs the same position as Scotland to match road and rail capital investment with a robust cost control system.
Current infrastructure replacement funding for Network Rail (and thus for GBR) is based on a five-year financial and planning process despite being an anathema to HM Treasury. However, under GBR funding may be cut during that period. For a long-term investment programme this could leave projects unfinished and an unhappy supply chain.
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The Wales and Borders passenger rail structure will remain because Wales’ primary rail network is a reverse ‘E’ shape with lines from the England border to Holyhead, Aberystwyth, and Pembrokeshire ports.
Transport for Wales (TfW) will continue its role in running all its present train services under Welsh Government direction. This is fundamental to achieving the national integrated public transport vision in one network, one timetable, one ticket and the TfW road map to bus reform announced on Monday. Welsh Government involvement in setting fares on GBR trains is also a prerequisite.
Simplifying fares are constantly proposed by politicians who clearly have no market understanding. Yield management (eg standard fares with discounts on off-peak or trains with spare capacity) enables the market to maximise its revenue contribution so reducing the need for government revenue support. One fare is unlikely to match the lowest current discount fare or will increase taxpayer financial support to unaffordable levels.
The consultation document says, “the 海角视频 Government will work with Welsh Government to establish strong, enduring joint working relationships between GBR and TfW” and ‘legislation will enable a relationship between GBR and TfW to evolve over time.”
GBR is not the revolution claimed of it. If Wales is to get integrated public transport and an integrated road and rail investment programme, then decisions are through the current rail and bus proposals. This ‘evolution’ appears to be a means of delaying change to satisfy London’s Labour party and those Whitehall mandarins who never supported devolved railway operations.
Applying to transport Professor Richard Wyn Jones’ comment of ‘not kicking hard enough against the London fence’ would help achieve those changes and the best GBR outcome for Wales.
We have the opportunity at (deadline is April 15th). to put our views on Great British Railways (GBR) and how it would give the best rail passenger service for Wales. Similar consultation on bus reform is expected soon.
Professor Stuart Cole CBE is Emeritus Professor of Transport (Economics and Policy) at the University of South Wales.