A car waiting at a level crossing while a Transport for Wales train passes. In the foreground a bus is waiting at a bus stop.

A car waiting at a level crossing while a Transport for Wales train passes. In the foreground a bus is waiting at a bus stop.

A transport policy update

Published 11/09/2024   |   Reading Time minutes

Welsh Government transport policy hasn’t been far from the headlines recently. The 20mph default speed limit policy led to the biggest petition in Senedd history while poor rail performance and plans for bus reform also attracted media attention.

Meanwhile, transport featured heavily in July’s Kings Speech and the new UK Government’s plans could have implications in Wales.

This article brings you up to speed on what’s happening across the Welsh transport sector.

Roads

The most high profile transport issue this year – the 20mph default speed limit policy – met a strong public response when it came into force in September 2023. Since then, data has shown a drop in average speeds and a reduction in road collisions, while insurance company Esure has said claims for vehicle damage have decreased by 20%.

While the policy appears to be having the impact the Welsh Government hoped, the Cabinet Secretary for Economy, Transport and North Wales, Ken Skates MS, has emphasised the need to look at long term trends where the data is concerned. Public opposition to the change also remains strong. A poll by Redfield & Wilton, a month after the policy rolled out, found a majority were against the new speed limit. More recently, a July 2024 YouGov poll showed 7 in 10 people oppose the policy.

In April, it was reported that changes would be made to how the policy has been implemented. Updated guidance for Councils was issued in July and changes to speed limits on some roads are now expected.

Elsewhere, in contrast to the previous UK Government’s view, the new UK Secretary of State for Transport, Louise Haigh MP, has said local authorities should decide whether to introduce 20mph limits in England, but that they’d have the “full backing” of the Department for Transport (DfT) to do so.

Changes may also emerge in other areas of road policy. In February 2023 the Welsh Government, then under the leadership of Mark Drakeford MS, responded to the Roads Review Panel report with a new roads policy statement. That outlined the circumstances where the Welsh Government will invest in new and existing roads. It heralded a fundamental change in approach to Welsh highway investment and saw a number of road schemes cancelled.

However, in April, following his appointment as Transport Secretary, Ken Skates MS said:

We are also going to build new roads and improve our existing ones, but we'll raise the bar and build better than before.

In June, the Cabinet Secretary was asked if the roads policy statement would change. He told the Climate Change, Environment and Infrastructure (CCEI) Committee he was “looking at that at the moment”.

Buses

While 20mph has dominated this year’s transport headlines, bus franchising looks set to be next year’s big ticket item. A Bus Bill is expected to be introduced by spring 2025.

The Welsh Government’s 2022 bus reform white paper proposes legislation requiring bus franchising throughout Wales. It would mean responsibility for planning most bus services pass from local authorities to Transport for Wales (TfW) and the Welsh Ministers.

The Welsh Government’s roadmap to bus reform sets out how it’ll be implemented. It proposes using a “gross-cost” model where operators will be paid a fee to run specified services (with incentives in place) while TfW will receive fare revenue - meaning TfW carries the risk if passenger targets aren’t met.

The Cabinet Secretary says the Bill will bring “huge opportunities” for integrated transport and suggests there are “strong synergies” between the Bill and the new UK Government’s plans for buses in England.

Rail

In terms of rail reform, Wales is already a fair way down the line. The impact of the pandemic resulted in the Wales and Borders franchise being brought under direct public control (with TfW as the operator of last resort). New trains have been introduced on the network and various infrastructure projects are well underway.

However, the CCEI Committee’s recent inquiry into rail services highlighted issues including; franchise commitments not being met; poor performance of TfW rail services; the fact additional funding was needed to ensure services continued to operate in 2023-24; and, overspending on the South Wales Metro project.

In June, the Cabinet Secretary made a statement on rail and suggested TfW rail performance has “turned a corner”.

At a UK level, the new Labour government has set out its plans for rail reform. The Welsh Government has welcomed the proposals, with the Cabinet Secretary highlighting how the plans will allow the Wales and Borders franchise to be kept under public ownership.

The Passenger Railway Services (Public Ownership) Bill 2024-25, introduced to the House of Commons in July, would see passenger rail services brought under public ownership when existing franchise contracts end, or contractual break points are reached. The Bill has passed through the Commons stage – the first major piece of legislation to do so since the new UK Government was elected – and has now moved to the House of Lords.

In terms of other reforms, the May 2021 Williams-Shapps Plan for Rail proposed establishing a new body – Great British Rail (GBR) – to better integrate railways. In particular, it would bring together rail infrastructure management (responsibility currently lies with Network Rail) with planning services. The new UK Government intends to build on its predecessor’s work, and has recently announced a Shadow GBR will be established to “bring together track and train”, ahead of the primary legislation needed to create GBR. There’s currently little detail on the implications for Wales.

Following an August meeting with the UK Government Rail Minister, Lord Hendy, the Cabinet Secretary said the two Government’s had agreed to work in partnership to deliver rail reform.

Active travel

Increasing bus and rail travel will be important for meeting the Welsh Government’s target for 45% of journeys be made by sustainable modes (public transport or active travel) by 2040. But it has also set ambitious targets specifically on active travel.

Net Zero Wales aims to increase the share of trips using active travel to 33% by 2030 and at least 35% by 2040. It’s currently estimated to be 27% and there’s little evidence that active travel rates have increased since the Active Travel (Wales) Act was passed in 2013. The Chair of the Active Travel Board recently described progress as “painfully slow”.

In 2023, the former Deputy Minister for Climate Change, Lee Waters MS, acknowledged “a pretty deep reform to the delivery mechanisms” for active travel was required.

Ports and aviation

Financial support for Cardiff Airport continues to be a contentious issue. The Cabinet Secretary set out the long term strategy for the airport, owned by the Welsh Government, earlier this summer. He also announced £206m in funding over the next ten years. The Welsh Conservative’s Shadow Transport Minister, Natasha Asghar MS, has recently called for the airport to be sold.

Elsewhere, in the ports sector, work is underway to establish freeports in Wales. Anglesey Freeport and Celtic Freeport were successful bidders following an agreement reached between the previous UK and Welsh Governments on financial support.

What’s next

The transport priorities of the new First Minister, Eluned Morgan MS, aren’t yet known, however it’s clear that reform of the transport network is well underway.

The journey continues.


Article by Francesca Howorth, Senedd Research, Welsh Parliament