South East Wales Plans at Centre of Rail Reform Push 2026

Key Points

• The Welsh Government is calling for a stronger role in rail decision-making as Great British Railways is established.
• Ministers want full autonomy over the Wales and Borders franchise, a partnership role in cross-border services, and accountability to the Welsh Government and Senedd.
• Ken Skates said Wales has the UK’s most complex rail model and repeated the Welsh Government’s longer-term aim of full rail devolution.
• Rail infrastructure outside the Core Valley Lines remains owned and maintained by Network Rail, with funding and planning largely reserved to Westminster.
• A memorandum of understanding published in March 2026 sets out closer working between Great British Railways and Transport for Wales, including joined-up timetables, bilingual passenger information, cross-border services and links with buses and active travel.
• The Welsh Government is concerned that a centralised Great British Railways could fail to reflect Welsh priorities, including transport planning in South East Wales.
• The Senedd Research Service said the Railways Bill does not itself alter the existing devolution settlement, despite creating new arrangements for cooperation.

Wales (Wales Times) August 25, 2026 — Welsh ministers are pressing the UK Government for greater influence over rail services and infrastructure decisions, arguing that the creation of Great British Railways must not lead to an overly centralised system that overlooks Welsh transport priorities.

The position is particularly relevant to South East Wales, where rail is central to wider plans to connect communities, employment areas and public transport networks. The Welsh Government’s case is that decisions affecting Welsh passengers should be shaped in Wales, rather than being determined primarily through a UK-wide structure.

In a Welsh Government statement, Cabinet Secretary for North Wales and Transport Ken Skates set out three principal requests to UK ministers and Parliament’s Transport Committee: full autonomy for the Wales and Borders franchise; a partnership role in the design and management of services run by other operators that affect Welsh passengers; and accountability for Great British Railways to both the Welsh Government and the Senedd in relation to its work in Wales.

Mr Skates said rail reform could offer “a significant step towards a clearer role for the Welsh Government”. He said ministers wanted to work in partnership on reforms to create what he described as a simpler and more efficient railway for passengers in Wales and the border areas.

The Welsh Government’s intervention comes as the UK’s Railways Bill provides for Great British Railways, commonly referred to as GBR. The planned body is intended to bring together the management of most passenger train operations in England and the responsibilities currently undertaken by Network Rail across much of Great Britain.

For Wales, however, the legislation has raised questions over who holds power over railway planning, service delivery, infrastructure investment and accountability. Welsh ministers have consistently said their longer-term objective remains full devolution of rail services and infrastructure, accompanied by what they describe as a fair funding settlement.

What concerns has Wales raised about Great British Railways?

The Welsh Government has warned that rail reform should not reduce its existing ability to shape transport services that matter to communities in Wales. This concern is relevant to cross-border routes, local connections and the future relationship between Transport for Wales and Great British Railways.

According to James Mirza-Davies of Senedd Research, the Railways Bill preserves the present devolution settlement rather than transferring full rail powers to Wales. The Welsh Government is responsible for Wales and Borders passenger services, operated by Transport for Wales through TfWRail, and it also owns, plans and funds the Core Valley Lines infrastructure.

The Core Valley Lines serve a significant part of the South Wales network and were transferred into Welsh Government ownership in 2020. However, the wider Welsh rail network remains owned and maintained by Network Rail. Planning and funding for that infrastructure remain reserved responsibilities, even though Welsh ministers can choose to invest their own devolved budgets in rail projects.

In its Legislative Consent Memorandum on the Railways Bill, the Welsh Government raised concerns that the legislation would enable GBR to exercise certain Welsh ministerial functions without providing an equivalent ability for Welsh ministers to exercise GBR functions. It also said provisions could affect Welsh responsibilities for rail planning and infrastructure.

Another concern involved Transport for Wales services operating across the England-Wales border. Senedd Research reported that Mr Skates was concerned that the original arrangements could restrict the ability of Welsh ministers to continue securing cross-border TfWRail services. A subsequent UK Government amendment was supported by the Welsh Government because it allowed the Secretary of State to secure passenger services through Welsh ministers.

Mr Skates said further engagement with the UK Government would be required before he could confirm to the Senedd that all provisions were suitable for Wales.

Why does rail control matter to South East Wales transport plans?

Rail policy has wider implications than train operations alone. In South East Wales, railway planning affects connections between towns and cities, access to jobs and education, and the ability to link rail journeys with buses, walking and cycling routes.

The Welsh Government has argued that a more locally responsive governance model would allow rail priorities to reflect the needs of Welsh passengers and communities. Its position is that decisions on services, timetables, infrastructure and capacity should be coordinated with Welsh transport policy.

The Welsh Government’s transport strategy is known as Llwybr Newydd. Professor Mark Barry of Cardiff University told the Senedd’s Economy, Trade and Rural Affairs Committee that the proposed UK Long-Term Rail Strategy should be developed consistently with that Welsh strategy, according to the Senedd Research briefing by James Mirza-Davies.

The Railways Bill would require the UK Secretary of State to create a Long-Term Rail Strategy covering a 30-year period. Welsh ministers must be consulted during that process, but the legislation does not transfer responsibility for the strategy to Wales.

The Welsh Government has also focused on the need for a practical relationship between Transport for Wales and a proposed Wales and Borders business unit within GBR, referred to as GBR Cymru. The planned memorandum of understanding envisages a business plan reflecting both GBR and Transport for Wales priorities.

James Price, the chief executive of Transport for Wales, said the partnership arrangement between TfW and GBR Cymru would not be statutory, which he described as a “weak point”, according to the Senedd Research account. Professor Barry said that, to work effectively alongside TfW, GBR Cymru would need to operate at arm’s length from the central GBR organisation.

These issues matter to South East Wales because decisions made on a UK-wide basis could influence the sequencing of upgrades, capacity decisions, integration with other transport and the priorities given to local passenger needs.

What has the UK-Welsh rail agreement changed?

The UK and Welsh governments published a memorandum of understanding on 25 March 2026, setting out how they intend to work together once Great British Railways is in place. The agreement did not amount to full rail devolution, but it provided for a strengthened Welsh role in the governance of services affecting Wales and the English-Welsh border.

The Department for Transport, Welsh Government and Wales Office said the arrangement would allow GBR and Transport for Wales to plan services together. The governments said this should support more coordinated decisions, clearer bilingual passenger information and improved links between rail, bus and active travel.

Transport Secretary Heidi Alexander said the Welsh Government would have “a new, strengthened role and a bigger say” in how the railway is operated for local communities. She said the agreement was intended to align the way both governments plan and manage rail services, including cross-border journeys.

Ken Skates said the agreement outlined a strong partnership between the two governments and would support closer working while rail services are improved for passengers.

The UK Government said the agreement would support passenger priorities such as reliability, local connectivity and quicker resolution of issues through decisions informed by local input. It also said the arrangement would underpin bilingual information for passengers in relevant circumstances.

However, the central question for Welsh ministers remains whether cooperation arrangements are sufficient or whether legal and financial powers should ultimately be transferred. The Welsh Government has framed further devolution as a process rather than a single event.

How is rail investment linked to the powers debate?

Funding is a major part of the Welsh Government’s case for more control. Senedd Research said Wales does not receive a block grant allocation specifically for rail infrastructure, despite the Welsh Government being able to spend its own budget on rail projects.

The briefing said that investments made by the Welsh Government in rail infrastructure can therefore draw upon money allocated for devolved purposes. It cited the reopening of the Ebbw Vale line as an example of an investment funded in that context.

The UK Government’s 2025 Spending Review announced £445 million for rail infrastructure in Wales. According to the Senedd Research briefing, the Welsh Government said the total included £302 million to begin delivering the Wales Rail Board’s enhancement pipeline, £48 million for Core Valley Lines enhancements and £95 million through the UK Government’s 10-year Infrastructure Strategy.

The UK Government later said the commitment was intended to support projects including new stations, level-crossing work and upgrades to existing lines across north and south Wales. It also referred to an estimated £14 billion long-term vision developed by Transport for Wales.

Senedd Research noted that opposition parties had challenged the presentation of the £14 billion figure, arguing that it did not necessarily represent new commitments and depended on future UK Government budget decisions.

Background: How are rail responsibilities divided in Wales?

The Welsh Government currently has responsibility for the Wales and Borders passenger franchise, while Transport for Wales operates the TfWRail network. Welsh ministers also own the Core Valley Lines infrastructure, which is distinct from most other railway infrastructure in Wales.

Network Rail retains ownership and maintenance responsibilities for the wider Welsh rail network. Unlike Scotland, Wales does not have full devolved control over rail infrastructure, funding or long-term infrastructure planning.

The Railways Bill, introduced to the House of Commons on 5 November 2025, proposes Great British Railways as the new body overseeing rail reform. It is expected to bring together much of the present railway structure, but its provisions do not themselves provide for full rail devolution to Wales.

The memorandum of understanding between the UK and Welsh governments is intended to establish working arrangements under GBR, including cooperation on cross-border services, shared objectives and accountability.

Prediction: How could this affect South East Wales passengers?

For passengers in South East Wales, a stronger Welsh role could lead to rail planning being more closely aligned with local transport priorities, including connections between trains, buses and active travel. The UK-Welsh agreement says future decisions should reflect local needs and seek improvements in reliability, information and connectivity.

The immediate effect is likely to be continued joint working rather than a transfer of full legal control. Any further change in devolved powers would depend on negotiations between Welsh and UK ministers, the progress of the Railways Bill and future decisions on funding.

For communities, local authorities and commuters, the outcome will be measured by whether governance changes result in practical improvements such as better coordination of services, clearer information, dependable timetables and infrastructure investment that reflects South East Wales transport needs.