The Welsh Government has yet to commit funding for the £100m Cardiff Crossrail project, despite ongoing discussions and consultations.
This delay in decision-making raises concerns about the financial feasibility and timely completion of the ambitious public transport scheme.
Cardiff Crossrail Development Plans
The Welsh Government has yet to confirm a match funding contribution for the initial £100m phase of the Cardiff Crossrail project. Cardiff Council recently started a public consultation for this scheme, developed in partnership with Transport for Wales (TfW), which proposes a new tram network running from Cardiff Central Train Station to Cardiff Bay. This project represents the preliminary step in a broader, long-term vision for an integrated public transport system in the capital.
Infrastructure and Construction Details
A new dedicated two-platform station is planned to be incorporated into Cardiff Central Station, situated on the current surface car park on its south side. This is subject to an agreement with the landowner, Network Rail. The tram route will proceed through the Callaghan Square office area before linking with the existing rail line that connects Cardiff Bay to Queen Street Station via Bute Street. Additionally, work is in progress on a second platform at Cardiff Bay station as part of the South Wales Metro rail electrification project.
Project Phases and Financial Considerations
The existing Bay line is undergoing electrification and an upgrade to two tracks. To accommodate the Crossrail services, a dedicated third platform will be constructed. Initially, the plan for phase one was for the tram route to extend further into the Bay to a new station on Pierhead Street. The final budget for the first phase is yet to be finalised, but it is expected to stay within the £100m limit. Extending it to Pierhead Street could add approximately £40m, now considered a subsequent phase based on securing the necessary funding.
Strategic Long-Term Goals
The long-term objective is to eventually extend the Cardiff Crossrail westwards to connect with the South Wales Mainline and the proposed Cardiff Parkway station and integrated business park at St Mellons. A significant portion of the cost for the new link from the city centre to the Bay will cover highway-related expenses, including the development of new pedestrian and cycle routes and public realm enhancements through Callaghan Square.
Funding Challenges and Requirements
Cardiff Council might commence enabling work later this year or early next year while the Welsh Government advances the necessary rail legislation for the project. The initial £100m funding was secured through Cardiff Council’s successful bid to the Levelling Up Fund by the previous UK Government. This funding is disbursed in four equal instalments over four years, conditional on the Welsh Government matching it with £50m of its own funds.
Welsh Government’s Position and Negotiations
The Cardiff Bay administration needs to finalise its funding commitment to the project, which could be completed by 2028. A Welsh Government spokesperson stated, ‘We look forward to Cardiff Council sharing their business case for the Cardiff Crossrail proposal with us. Once received, it will form part of our broader discussions on rail priorities with the UK Government.’ They also anticipate discussing the project with Cardiff Capital Region as part of its ambitious regional transport plan.
Broader Rail Investment Context in Wales
The Welsh Government is seeking a fairer funding arrangement from the new Labour Government in Westminster for rail enhancement projects in Wales. Despite having around 10% of the UK rail network, Wales has been significantly underfunded, receiving less than 2% of enhancement project investments in England and Wales. The Welsh Government has been negotiating for the devolution of rail infrastructure, describing it as a ‘process rather than an event.’
Future Funding and Regional Development
There is no current indication that the Welsh Government will not contribute to Cardiff Crossrail’s funding. Nevertheless, they may seek the UK Government to cover the entire project cost as part of a broader package to address the historic underinvestment in Welsh rail infrastructure. Other projects that may require funding include the electrification of the North Wales Mainline and constructing new stations on the South Wales Mainline to enhance train services.
Historical Funding Disparities
First Minister Eluned Morgan highlighted the historical lack of UK Government investment in Welsh railways, with Wales receiving less than 2% of enhancement project funding in England and Wales. This discrepancy dates back decades and has left Wales significantly underserved in rail infrastructure development.
Impact on Other Regions
Competing for future funding will be challenging for Wales, as it will need to contend with calls for investment from other regions in England. The north of England, driven by mayors such as Greater Manchester’s Andy Burnham, and London, which has long received above-average per capita rail investment, are also vying for increased funding.
Potential Benefits and Risks
TfW has developed strong business cases for future investment in Wales, including Metro networks in Swansea Bay and North Wales. A failure to secure funding for new projects could lead to the erosion of internal expertise and robust supply chain networks established over the years. Not having rail infrastructure devolved has prevented Wales from addressing these funding disparities effectively.
Barnett Formula Implications
The reclassification of high-speed rail projects could bring significant financial benefits to Wales. Historically, Wales has received proportionate transfers from the Department of Transport’s budget based on a high comparability factor, around 90%. However, with Network Rail and high-speed rail spending included, the factor has dropped to approximately 36%, exacerbating the funding shortfall.
Non-Devolved Investment Efforts
Despite not having a fair funding settlement for rail, the Welsh Government has invested £160m from its budget to upgrade non-devolved rail lines, such as the Ebbw Vale line since 2008. These efforts indicate a commitment to improving rail infrastructure despite the financial constraints. Future considerations include the impact of England-based projects like the TransPennine route upgrades and Northern Powerhouse Rail, which continue to be deemed dual-nation projects, impacting Welsh funding allocations.
The uncertainty surrounding the Welsh Government’s funding commitment poses a significant challenge to the Cardiff Crossrail project’s progress.
Securing the necessary funds is crucial to realising the long-term vision of a fully integrated public transport network in Cardiff.
