The UK Government introduced the Railways Bill to the House of Commons on 5 November 2025. It seeks to create Great British Railways (GBR), often described as a “directing mind” for the railway. GBR would bring together most passenger train operators in England and Network Rail, which operates most railway infrastructure in Great Britain, into a single organisation.
Devolution of the railway in Wales
The Welsh Government is responsible for the Wales and Borders passenger services, which Transport for Wales (TfW) operates as TfWRail. It also plans and funds the Core Valley Lines (CVL) infrastructure, which transferred to Welsh Government ownership in 2020.
The wider Welsh rail network is owned and maintained by Network Rail. Network Rail funding and infrastructure planning in Wales remain reserved, unlike in Scotland where it is devolved. While the Welsh Government has powers to invest in infrastructure, it doesn’t receive a budget allocation for this.
The Railways Bill and devolution
The Bill applies to Wales, England and Scotland. One clause also applies to Northern Ireland. It maintains the current devolution settlement. However, the Welsh Government’s “ambition remains the full devolution of rail services and infrastructure”.
While Peter McDonald, of the Welsh Government, said the Bill “takes us further in terms of how the current settlement can operate efficiently and effectively”, Professor Mark Barry, from Cardiff University, said there were opportunities to go further under the current devolution arrangements, for example greater autonomy for GBR in Wales, or the Welsh Government setting Welsh priorities.
The Welsh Government’s response to the Bill
By convention, clauses that have regard to devolved issues require Legislative Consent. The Welsh Government laid a Legislative Consent Memorandum (LCM) on 21 January 2026. The Cabinet Secretary for Transport and North Wales, Ken Skates MS (the Cabinet Secretary), raised several issues in the LCM including that the Bill:
- Enables GBR to exercise the functions of Welsh Ministers but doesn’t enable Welsh Ministers to exercise those of GBR.
- Impinges on the Welsh Ministers’ functions for railways planning and infrastructure.
- Is inconsistent with TfWRail operating services in England. TfW currently manages some cross border services. The Cabinet Secretary was concerned these couldn’t continue, as the Secretary of State could secure services only through GBR and not through Welsh Ministers.
The Welsh Government laid a supplementary LCM (SLCM) on 2 February dealing with UK Government amendments to the Bill (further SLCMs are likely as the Bill progresses). The Welsh Government supported an amendment allowing the Secretary of State to secure passenger services through Welsh Ministers, addressing concerns about cross-border TfWRail services.
The Cabinet Secretary said “further engagement will be required [with the UK Government] before I am able to confirm to the Senedd the suitability of all provisions for Wales”.
Cooperation between UK and Welsh governments
The Bill requires the Secretary of State to publish a memorandum of understanding (MoU) with Welsh and Scottish Ministers outlining how they will cooperate and share information. The Bill doesn’t address MoU enforcement. TfW’s CEO, James Price, said having the MoU wording in legislation would “objectively” be better. However, the Cabinet Secretary said “it would be pretty unprecedented and it would be very brave of any Minister to ignore [the MoU].”
The Secretary of State and Welsh Ministers set out shared ministerial intentions for the MoU in a heads of terms document. A full draft of the MoU, expected in March, would:
- develop a framework for cross-border rail services;
- ensure GBR’s Capacity Plan and allocation decisions are consistent with the joint objectives for the Wales and Borders area; and
- ensure adequate GBR and TfW accountability to UK and Welsh Ministers.
GBR Cymru
The MoU would establish a Wales and Borders Business Unit within GBR, referred to as GBR Cymru, to deliver a business plan reflecting GBR and TfW priorities. James Price said he wants GBR Cymru to be “empowered” and partly accountable to TfW. To work effectively with TfW, Professor Barry said it must operate at arm’s length from GBR.
While the Bill requires GBR to have regard to devolved strategies, the TfW-GBR Cymru partnership agreement wouldn’t be statutory. James Price described this as a “weak point”.
The Long-Term Rail Strategy
The Bill requires the Secretary of State to produce a Long-Term Rail Strategy (LTRS), the first strategy of its kind. It will set out strategic objectives for the railway over a 30-year period, and would be updated as factors like technology develop.
When producing the LTRS the Secretary of State is required to consult Welsh Ministers. Professor Barry said the LTRS should be developed to be consistent with “Llwybr Newydd”, the Wales Transport Strategy.
Rail Funding in Wales
Planning and funding Welsh rail infrastructure (outside the Welsh Government owned Core Valleys Lines) are UK Government responsibilities, even though the Welsh Government can choose to invest in it. Infrastructure enhancement planning remains non‑statutory under the Bill.
Rail funding in Wales has long been contentious as discussed in our November 2024 article.
Because Wales doesn’t receive any block grant allocation for rail infrastructure, any investments it makes – like reopening the Ebbw Vale line – are funded from money allocated to Wales for other, devolved, purposes.
In October 2025, the UK Minister for Rail said the current UK Government recognises that railways in Wales have seen very low levels of enhancement spending. He explained that the UK and Welsh Governments are looking to expand the role of the Wales Rail Board in planning and prioritising enhancements.
The Board is not a statutory body, and is not mentioned in the Bill. It was established following a House of Commons Committee recommendation in 2021 to develop a pipeline of infrastructure projects. TfW Chair, Vernon Everitt, became Chair of the Wales Rail Board in December, and has accepted the need for greater transparency for this increasingly important forum.
Although the Bill does not change funding arrangements, there have been recent developments. The UK Government’s 2025 Spending Review announced £445m for Welsh rail infrastructure. A Welsh Government statement said this includes:
- £302m to begin delivering the Wales Rail Board’s enhancement pipeline;
- £48m for Core Valley Lines (CVL) enhancements; and
- £95m via the UK Government’s 10‑year Infrastructure Strategy.
It said this “begins to address the historical underfunding” of rail in Wales.
The First Minister told Plenary on 20 January 2026 that she wanted more UK Government funding, referring to “unfairness in the system”. Shortly afterwards, on 17 February 2026 the Prime Minister announced £14 billion for rail funding in Wales. This included a £4.4 billion pipeline of schemes identified by the Wales Rail Board that can be delivered over the next 15 to 20 years.
In Plenary, opposition parties criticised the announcement. They argued that the £14 billion contained no new commitments and was dependent on the budget choices of future UK governments.
What happens next for the Railways Bill
The Railways Bill is currently progressing through the House of Commons. It would then need to complete the same stages in the House of Lords before becoming an Act.
With rail central to plans for integrated public transport in Wales, the Senedd will want to satisfy itself that the Bill will further Welsh interests before giving legislative consent.
This guest article has been prepared for Senedd Research by James Mirza-Davies.
