The Treasury Issues HS2 Funding Update for Wales
The Treasury recently confirmed that Wales will not receive additional funding through the HS2 rail project. The Labour-led Treasury stated that it will not recategorise HS2 nor provide millions in consequentials to Wales. This decision was made clear in response to a question posed by Plaid Cymru MP Liz Savile Roberts to Welsh Secretary Jo Stevens during Welsh questions in the Commons.
Stevens explained that the classification and management of the HS2 project were determined by the previous Conservative Government, and the current focus is on collaborating with the Senedd and local authorities to enhance transport projects across Wales. The UK Government’s stance is that the funding for heavy rail infrastructure in England and Wales will be allocated by the UK Government rather than through Barnett funding to the Welsh Government.
The debate surrounding HS2’s classification as an “England and Wales” project has been ongoing, with differing estimates of the financial impact on Wales. While Plaid Cymru suggested a loss of up to £4 billion, former Welsh finance minister Rebecca Evans indicated a figure of £350 million. Despite these discrepancies, the Welsh Government continues to push for a review of the HS2 project classification and fair funding allocation for Wales.
In October 2023, First Minister Mark Drakeford mentioned the possibility of legal action to secure additional funding for Wales. Following the cancellation of parts of HS2, Drakeford urged the UK Government to fulfil its financial obligations to Wales. The ongoing discussions between the Welsh and UK Governments aim to ensure equitable rail infrastructure investment across Wales.
The funding update regarding HS2 highlights the complexities of infrastructure funding allocations and the impact on Wales. This situation underscores the importance of collaborative efforts between governments to address transport challenges and improve services for passengers across Wales.