Working people across Wales will benefit from better access to
jobs and opportunities thanks to a Welsh rail investment worth at
least £445 million announced by Chancellor today as part of the UK
Government's Spending Review which will invest in UK's renewal.
The transformative rail package will reconnect Wales's industrial
heartlands, improve commuter journeys and drive economic growth
in communities that have long suffered from poor transport
links.
The package will invest in both north and south Wales, fixing
level crossings, building new stations, and upgrading existing
lines
This strategic rail investment forms the cornerstone of the UK
Government's plan to reconnect, reindustrialise and renew Wales -
addressing decades of underinvestment in critical infrastructure
that has held back the Welsh economy.
The rail upgrades will specifically link centres of advanced
manufacturing excellence in North Wales and improve vital
connections between Cardiff and Bristol, making it easier for
businesses to invest and for workers to access employment
opportunities.
Alongside this major transport investment, the Spending Review
delivers significant backing for Wales's key industrial
sectors.
In Port Talbot, a combined investment of up to £580 million will
secure the future of steelmaking while transforming the port into
a clean energy hub. Within this, £500 million for Tata Steel's
new Electric Arc Furnace will protect 5,000 jobs while reducing
carbon emissions.
Secretary of State for Wales, , said:
This UK Government is investing in Wales' future and driving
economic growth across the country.
We promised we would deal with the historical under-investment in
Wales' rail network and the funding announced today in this
Spending Review shows we are delivering on that pledge.
Along with a record financial settlement for Welsh Government to
improve public services, £118m more to help keep coal tips safe
and investment in growing industries like aerospace, we are
backing Wales' potential and delivering for working
people.”
Growing Wales' domestic aerospace and defence
industries
Speaking in the House of Commons today, the Chancellor reaffirmed
the government's commitment to increase defence spending to 2.6%
of GDP by April 2027, backing our Armed Forces, creating British
jobs in British industries, and prioritising the security of
Britain when it is most needed.
The Spending Review also backed Welsh industry by continuing
investment in the defence industry right across the UK, including
Wales.
Wales's aerospace and automotive industries, already employing
over 15,000 people, also stands to gain through UK-wide funding
announced for the advanced manufacturing sector, enabling the
development and delivery of ultra-low and zero-carbon emission
vehicles and aircraft.
Coal tip safety
The Spending Review also confirms a further £118 million between
2026-27 and 2028-29 for the Welsh Government to maintain the
safety of disused coal tips, on the back of £25 million already
committed in 2025-26 during 2024 Autumn Budget. The money will
see tips secured, homes protected and land unlocked for housing,
industry and recreation.
The UK Government also pledged continued support for Welsh
Investment Zones in Cardiff City Region and Wrexham and
Flintshire, which will receive £160 million each over 10 years,
driving growth and jobs.
Supporting Welsh businesses
The new Industrial Strategy and Public finance Institutions will
collaborate with the devolved governments and local stakeholders
to drive growth across the UK. Through the Nations and Regions
Investment programme the British Business Bank is delivering £130
million across Wales to break down access to finance barriers and
drive economic growth.
Local growth funding
A new local growth fund, and investments in up to 350 deprived
communities across the UK, will maintain the same cash level as
in 2025-26 under the Shared Prosperity Fund. The Ministry of
Housing, Communities and Local Government and the Wales Office
will work with local partners to ensure money goes to projects
that matter to local people. This investment will help drive
growth and improve communities across all parts of Wales.
A record settlement for Welsh public
services
The Welsh Government will receive the largest settlement in real
terms since devolution in 1999, with an average settlement of
£22.4 billion per year to deliver against the priorities of
working people in Wales.
This comprehensive investment package is further delivery of the
UK Government's promise to invest in Britain's renewal and ensure
that economic growth benefits every part of the United Kingdom.
