UK Government and Welsh Ministers Publish Rail Reform Memorandum to Transform Wales and Borders Railway

A major step in modernizing the railways across Wales and its border regions has been announced with the publication of a memorandum of understanding (MoU) between the UK Government and the Welsh Government.

The move signals a shared commitment to create a simpler, more integrated, and passenger-focused railway system.

What the MoU Means for Rail Reform

The memorandum, released on 25 March 2026, outlines how the two governments will work together to plan, fund, and operate rail services in Wales and the Borders.

This agreement comes under Clause 24 of the Railways Bill and reflects months of collaboration between ministers, officials, and delivery bodies including Network Rail and Transport for Wales (TfW).

The MoU establishes a practical framework for joint decision-making and strategic planning, turning shared ambitions into concrete action.

It provides transparency around governance, roles, and responsibilities, ensuring both governments have a clear understanding of how to manage the rail network effectively.

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Key Priorities of the Memorandum

The MoU lays out several crucial areas for collaboration:

• Shared objectives and funding planning – Both governments will develop jointly agreed objectives for each funding period, guiding rail investment and service delivery.
• Whole-system planning – Decisions on access, capacity, and fare structures will align with shared objectives, supporting TfW’s multimodal responsibilities.
• Locally focused GBR Wales and Borders – An empowered corporate structure within Great British Railways (GBR) will coordinate closely with TfW to reflect local passenger and community needs.
• Partnering arrangements – A formal agreement between GBR and TfW will integrate track and train operations, reducing complexity and improving efficiency.
• Cross-border services – Clear frameworks for managing services that connect Wales and England will ensure transparency and continuity.
• Core Valley Lines (CVL) simplification – Regulatory and operational interfaces will be streamlined to improve efficiency across CVL and the wider network.
• Governance of enhancement investment – The Wales Rail Board will continue as a strategic forum for reviewing funding, planning enhancements, and monitoring delivery outcomes.

Impact and Consequences

The MoU is expected to have significant effects on the Wales and Borders rail network:

• Improved passenger experience through more integrated and reliable services.
• Stronger cross-border connectivity, benefiting communities and regional economies on both sides of the border.
• Greater efficiency in rail operations by reducing duplication and complexity between GBR and TfW.
• Clearer accountability and planning for infrastructure projects and service enhancements.

What’s Next?

Following the publication of the MoU, Network Rail and TfW will develop a formal partnering arrangement under GBR.

This partnership will focus on joint planning, shared objectives for the next funding period, and operational alignment.

The ultimate goal is to deliver a railway that meets the evolving needs of passengers, freight operators, and the communities in Wales and border regions of England.

Summary

The publication of the MoU represents a pivotal moment in rail reform across Wales and the Borders.

By establishing a shared framework for planning, governance, and partnership, the UK and Welsh Governments are laying the foundation for a more integrated, efficient, and passenger-centered railway system.

This collaborative approach promises to enhance reliability, connectivity, and service quality for years to come.

Key Takeaways

• The MoU was published on 25 March 2026, under Clause 24 of the Railways Bill.
• It formalizes collaboration between the UK Government, Welsh Government, Network Rail, and TfW.
• Focus areas include joint planning, governance, cross-border services, and Core Valley Lines simplification.
• Establishes a locally empowered GBR Wales and Borders corporate structure.
• The partnership aims to improve reliability, efficiency, and passenger experience.
• Next steps involve developing a formal GBR-TfW partnering arrangement for coordinated rail operations.