I gave Welsh government what it wanted, says chancellor

Rachel Reeves has defended the UK government's spending plans for Wales, telling BBC Wales she delivered what the Welsh government had asked for.

Opposition parties have been critical of the chancellor's spending review, calling the money earmarked for the railways a "drop in the ocean" compared to what the country needs.

The chancellor said the plan to spend £445m on Welsh railways was a "significant package" and defended the £118m earmarked for coal tips, which is short of estimates previously made by the Welsh government.

Reeves denied the spending review had left Wales short changed and said Wales was getting a "record" amount of cash.

Rachel Reeves made the comments on a visit to the Taff's Well Transport for Wales depot just outside Cardiff on Friday.

The Treasury is providing £300m for five new stations around Cardiff and Newport between 2026 and 2030, and a series of improvement works including measures to improve capacity in north Wales.

Another £48m is going on the South Wales Metro. Welsh Transport Secretary Ken Skates has said that almost £100m will be allocated to develop projects over ten years.

Speaking to BBC Wales, Reeves said: "This investment delivers the five train stations from the Burns review in south Wales, improvements to the core valley network as well as the level crossing improvements in north Wales to link people to the jobs that are available.

"This is significant investment that the Welsh government asked for. A Labour government in Westminster working with the Labour government here in Wales to deliver for people in Wales.

"At the same time there's the record devolution settlement for the Welsh government and, on top of that as well, the £118m for coal tips to keep those safe in Wales."

When it was put to her that it was far short of the up to £600m previously estimated to be needed for coaltips, Reeves said: "No, the £118m is what the Welsh government asked for from the UK government and we've delivered that in full.

"And we are also delivering in full the requests for investments for the Burns review stations for example."

Asked if Wales was being short changed by the 0.9% cut to Welsh government capital spending, she said: "No, we're investing in the transport infrastructure, in the coal tips and a record devolution settlement."

Jo Stevens, Welsh Secretary, told BBC Wales that plans to redevelop Cardiff Central are separate from the money that has been announced.

"That money has come from the fund that is delivering other projects in England," she said.

Asked if the five stations in south Wales will be built with the cash provided, Stevens said: "We will build everything that can be possibly physically be built within three to four years.

"At the same time we will working on getting ready for, after that three to four years, another series of projects that can be delivered.

"You can't just decide on a Monday morning that you are going to have new stations somewhere and just pick them up and drop them in."

The spending review also saw the UK Labour government outline its plans for changes to the funds that replaced EU economic aid.

It plans to rename the scheme from the Shared Prosperity Fund to local growth funds, with Wales in line for £211m each year from 2026 to 2029.

The government has said that Wales' share of the funds had been "protected".

The funds will still be handed out by the UK government, but Stevens said the Welsh government will have a "big decision making role around that".

She said her Wales Office department in the UK government will "have oversight, essentially, but the decision making role as we committed will be with Welsh government".

EU economic aid used to be administered by the Welsh government while the UK was in the European Union.

Leader of the Welsh Conservatives in the Senedd, Darren Millar, said: "The chancellor is offering nothing but paltry excuses for the pitiful sum of rail funding coming to Wales.

"The truth is that the people of Wales have been failed, forgotten and fleeced since she took the helm at the Treasury."

Plaid Cymru said: "The chancellor is defending crumbs for Wales while pouring vast sums into English regions and cities.

"Greater Manchester alone was allocated £2.5bn in this spending review while Wales is given £445m over 10 years."

Asked why the Welsh government did not ask for more rail and coal tip money, First Minister Eluned Morgan said the £445m rail package was "not something to be sniffed at".

Speaking at the British Irish Council meeting in Northern Ireland, she said: "We're really pleased that the UK government have recognised though that there has been significant under investment in railways in Wales as a result of successive Conservative governments."