The Railways Act 2005 transferred most of the functions of the Strategic Rail Authority to the Secretary of State for Transport in the UK Government. The Act made provision for the National Assembly for Wales to be a joint signatory with the Secretary of State for Transport to the Wales and Borders Franchise for train services operating within Wales.
The Welsh Government specifies and monitors the train passenger franchise in Wales.
Under the Government of Wales Act the Welsh Government is able to:
- develop and fund infrastructure enhancement schemes;
- develop new rail passenger services;
- invest in improving the journey experience for rail users; and
- fund rail freight improvement schemes through Freight Facility Grant (FFG).