Plans to re-connect Oswestry to the main railway network have been thrown into doubt after the new Labour government said it was scrapping the funding programme behind the scheme.

A number of projects including the rail link between Oswestry and Gobowen are potentially on the chopping block, after chancellor Rachel Reeves announced her plans to reign in public infrastructure spending today (July 29).

Addressing the House of Commons this afternoon, the chancellor laid out how she intended to address a £22billion hole in the public finances she says she has discovered since her party arrived in government.

As well as plans to review the current hospital building programme, the announcement included plans to review a number of infrastructure commitments made by the previous government.

Chancellor Rachel Reeves makes her statement to the Commons.Chancellor Rachel Reeves makes her statement to the Commons.

Those plans included a group of 38 rail projects known as the “Restoring Your Railway” fund, which contained the Oswestry to Gobowen link, which was approved in October last year.

The government now says those schemes will be assessed individually by transport secretary Louise Haigh, with a view to making around £85million worth of savings.

“The spending audit has revealed £1bn of unfunded projects that have been committed to next year so my right honourable friend the transport secretary will undertake a through review of these commitments, ” Ms Reeves told the House of commons this afternoon.

“As part of that work, she has agreed not to move forward with projects that the previous government has refused to publicly cancel despite knowing full well that they were unaffordable.

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“That includes proposed work on the A303 and the A27, and my right honourable friend will also cancel the Restoring Your Railway programme, saving £85m next year, with individual projects set to be assessed during her review. If we cannot afford it, we cannot do it.”

In October last year, the Government announced the Oswestry scheme would be fully funded to completion following its decision to scrap the northern leg of the HS2 high speed rail link.

The line closed in 1966 during the Beeching cuts, which closed hundreds of lines and stations across the country.

North Shropshire MP Helen Morgan said people in Oswestry would feel “badly let down” if the proposed rail link was cancelled.

“Restoring a rail link to Oswestry is vitally important for the town’s economic and social vitality,” she said.

“A connection to the main line would be transformative for many businesses and residents, in particular bringing more opportunities for younger residents.

“This is a chance for the new Government to show it is on the side of people in rural areas and market towns like ours. We need this to go ahead and many will feel badly let down if Labour cancel the scheme.”