Written statement on Rail Reform in the Wales and Borders area - Nov 5

Secretary of State for Transport (Heidi Alexander): Today (5 November 2025), we have introduced the Railways Bill to Parliament. This landmark legislation is a significant milestone in our journey to modernise and improve rail services across the United Kingdom, delivering a more integrated, accountable and passenger-focused railway.

Throughout the development of this bill, I have greatly valued the positive and constructive engagement between UK government, Welsh Government and Transport for Wales officials, which has been supported by the strong inter-ministerial relationship between UK and Welsh ministers. Our ministerial discussions have been both productive and forward-looking. We are committed to the UK and Welsh Governments' shared ambition to establish a clear set of joint objectives, understanding of the governance and management roles of UK and Welsh ministers in relation to railways and railway activities for the Wales and Borders area.

A key outcome of this collaboration is the inclusion of a specific clause in the bill, which provides for the development of a memorandum of understanding (MoU) between the Secretary of State for Transport and Welsh ministers, represented by Ken Skates as Cabinet Secretary for Transport and North Wales. This clause recognises the shared ambition to codify devolved responsibilities, funding arrangements and joint governance mechanisms, thereby strengthening accountability in the delivery of rail services across the Wales and Borders area. In parallel, UK and Welsh Government officials have jointly undertaken the drafting of a heads of terms for this memorandum, which has been a positive and collaborative process.

The heads of terms will provide a basis for the development of the memorandum. It will provide clarity on the expectations of how UK and Welsh ministers delivery agencies such as GBR and Transport for Wales (TfW) will work together to deliver a more integrated railway in the Wales and Borders area. This agreement will form the foundation for the MoU and reflects our shared priorities and principles for working together.

The heads of terms includes our shared ministerial intention for:

1. Shared objectives and control period / funding period planning for the Wales and Borders area – an outline of jointly agreed and published objectives and business plans that are shaped by both governments.

2. Track and train integration – agreed principles to deliver a more responsive and resilient railway by delivering a simpler, better, integrated railway for the users of the Wales and Borders network.

3. A GBR Wales and Borders business unit – to provide the Wales and Borders area with a dedicated, empowered business unit within GBR that will deliver against the shared objectives set by both governments.

4. England and Wales cross-border services – an aligned framework between the Welsh ministers and the Secretary of State for joint governance and transparent funding arrangements concerning cross-border rail services, reflecting the vital importance these services have on the connectivity, wellbeing and economic development of communities in both Wales and England.

5. Access and use – principles to enable GBR and TfW to work together to simplify access contracts and charging framework and ensure GBR's capacity allocation decisions and infrastructure capacity plan development are consistent with the joint objectives established for the Wales and Borders area.

6. Core valley lines (CVL) – to support TfW to integrate track and train, reduce internal regulatory complexity, and jointly develop an interface framework with GBR for service continuity across both networks.

7. Wales Rail Board and enhancements – a formally recognised and renewed Wales Rail Board as a strategic body within the governance framework. The evolved Wales Rail Board will review funding allocations, business plans and performance of enhancement schemes across the Wales and Borders area.

8. Governance – governance principles to ensure adequate accountability channels to UK and Welsh ministers by GBR and TfW.

9. Appointments and representation – Welsh ministers' role in shaping the overall recruitment strategy for the GBR Board, and consultation from the GBR CEO during the recruitment of senior executives within the Wales and Borders Business Unit.

10. The publication, review and amendment process for the MoU.

The heads of terms will enable us to move forward with the full development of the MoU, which we aim to publish and share publicly in the spring of 2026. This will provide clarity and transparency on how our respective governments will work together to deliver better rail outcomes in the Wales and Borders area.

Alongside and supported by the development of the MoU, a partnership agreement will be developed between Great British Railways (GBR) and Transport for Wales (TfW) for the Wales and Borders area. This agreement will support operational alignment and ensure that both organisations can work effectively together to deliver high-quality rail services for passengers in the Wales and Borders area.

This statement marks a significant step forward in our collaborative approach to rail reform and I am confident that our continued joint working with the Welsh Government supporting the delivery of a modern, integrated railway that works for passengers across the United Kingdom.