Issued by: Wales Office and HM Treasury

Major transport upgrade to drive growth and unlock economic potential across Wales, as UK Government delivers on Plan for Change.

• Investment is part of comprehensive spending package to invest in UK’s renewal, creating thousands of jobs in clean energy, manufacturing and defence

• The Welsh Government will receive the largest real terms settlement since devolution began in 1999, with an average settlement of £22.4 billion per year, enabling the Welsh Government to deliver for working people in Wales.

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 Rachel Reeves 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, Jo Stevens, 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.

ENDS

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