Labour in Wales has continued to pressure their UK counterparts over money owed to Wales regarding the HS2 rail development. The dispute revolves around the classification of the project and its impact on funding for Wales. The HS2 project, labelled an “England and Wales” scheme by the UK Treasury, did not trigger the Barnett Formula, which typically provides funding to devolved nations for UK government projects in England.
Despite Scotland and Northern Ireland receiving consequentials, Wales did not, as the project did not involve building tracks in Wales. Previous estimates suggested Wales may have missed out on significant sums, with figures ranging from £350 million to £4 billion. Welsh politicians, including First Minister Eluned Morgan and former minister Mark Drakeford, have advocated for Wales to receive its fair share.
The recent statement by the Treasury ruling out revisiting the funding issue has sparked further discussions in the Senedd. First Minister Morgan reiterated the need for fairness in investment, and Finance Minister Drakeford highlighted the discrepancy in figures, emphasizing Wales’ entitlement to funding from future HS2 spending. The Welsh Government maintains that Wales should have received a consequential share of the funding due to the project’s classification.
The evolving dialogue between Wales and the UK government signals a potential shift in Labour’s approach to the HS2 funding issue. Speculation arises as the Treasury’s previous definitive statement has since been revised, prompting anticipation for possible funding announcements in the upcoming budget. The ongoing discussions reflect Wales’ persistent efforts to secure the funding rightfully owed, setting the stage for further negotiations and potential resolutions in the future.