Railways: Funding

I hold a range of discussions with Ministers in the Welsh Government, including about our crucial investment in the Welsh rail network. We are investing at least £445 million in Welsh rail to right years of underfunding by previous Tory Governments. That will mean new stations, and more and faster trains on the key lines in north and south Wales and into England to improve cross-border connectivity, create jobs and boost economic growth.

Diolch yn fawr, Mr Llefarydd. The Treasury has confirmed that Northern Powerhouse Rail will again be classified as an England and Wales project, again depriving Wales of £1 billion in funding. Instead, we are being asked to celebrate £445 million being spent over 10 years in east Wales. This decision means no electrification beyond Cardiff, no new station for St Clears, even though it was promised through the levelling-up fund, and no upgrades for Carmarthen station. What influence can the Secretary of State bring to bear on the Treasury, so that the 1.5 million people who live outside the investment area, who are excluded, get the funding that they deserve?

Heavy rail projects in both countries are classified as England and Wales whether the track is in Wales, England or both. They do not attract Barnett consequentials because heavy rail is reserved. Examples of such projects include Padeswood in north Wales and the regeneration of Cardiff Central station. Surely the hon. Lady knows that the economic corridor between north Wales and the north-west is vital for regional integration and the economic growth of north Wales. The scheme paves the way for more services, more regular services and faster services across north Wales and the north-west.

Last year, the Welsh Labour Government introduced a £1 bus fare cap for young people. Since then, these reduced fares have been used on 2 million journeys. Earlier this month, Welsh Labour announced in my constituency that after the Senedd election in May, we will build on that success with a £2 bus fare for all fares and more than 100 new routes across Wales. Would my right hon. Friend join me in supporting this announcement, and can she update the House on what else the UK and Welsh Labour Governments are doing together to improve Wales’s transport infrastructure?

The introduction of the £1 bus fare cap for young people, and now a £2 cap on all fares from the Welsh Labour Government, has been great news; it will help everyone with the cost of living. The 100 new bus routes right across Wales, which will be introduced if Welsh Labour are re-elected in May, will further help people take advantage of the new opportunities and jobs that we are creating across Wales. All this has been made possible because there are two Labour Governments working together for Wales. Our record-breaking Budget settlement for the Welsh Government has delivered nearly £6 billion more in spending power, enabling them to invest more in transport and other public services.

I call the shadow Secretary of State.

Following a freedom of information request, several questions at the Dispatch Box and my pre-Christmas letter to the Secretary of State, a serious explanation of railway funding in Wales is still lacking. Previously, she said in the Chamber:

“We are investing…to right the years of underfunding”—[Official Report, 16 July 2025; Vol. 771, c. 282.]

She told the Welsh Affairs Committee that there was

“widespread agreement… and many others have expressed similar sentiments.”

That is not evidence of underfunding; it is an opinion. Will she finally tell the House what method she is using to form her opinion, and will she outline how much Network Rail intends to invest in Welsh railways?

The hon. Member will know very well from my reply to her letter that her assertion is fundamentally wrong, because she is using a combination of operations, maintenance, renewals and enhancement funding to reach the total figure provided under Conservative Governments. The Labour Government have announced nearly £500 million of investment in Welsh rail, specifically and solely in enhancement funding. That money is being front-loaded in this spending review period to deliver new stations and more and faster trains as soon as possible. She should carry on trying desperately to defend her party’s appalling record in government, because all she is doing is reminding everybody about it.