Wales' First Minister says she is 'putting pressure' on UK Government over HS2 (original) (raw)

Wales' First Minister Eluned Morgan has said she continues to put pressure on the UK Government to give Wales money related to the HS2 rail development, despite the Treasury admitting it will not relook at the issue.

The Labour-led Treasury confirmed last month it will not recategorise the HS2 rail project, nor pay millions of pounds in a consequential to Wales. A spokesman confirmed: "We will not revisit the classification and we therefore will not adjust their Barnett funding. The UK Government is responsible for heavy rail infrastructure across England and Wales so spends money on this in Wales rather than funding the Welsh Government to do so.

"This approach has always applied and will continue to apply to our investment in HS2 and is consistent with the funding arrangements for all other policy areas reserved in Wales as set out in the statement of funding policy."

HS2 has been one of the most-discussed issues between the UK and Welsh Governments after the project was designated an "England and Wales" scheme by the UK Treasury under the David Cameron administration. It meant it did not trigger the Barnett Formula - where the Welsh Government gets money as a result of UK government spending money on projects in England that are devolved in Wales.

Scotland and Northern Ireland both received consequentials but Wales did not, with the justification being that Welsh people will benefit from improved journey times to London due to changes at Crewe. No track for HS2 was ever planned to be built in Wales. However, last October, former Conservative Prime Minister Rishi Sunak announced the cancellation of the parts of HS2 from the midlands to Manchester. For the latest politics news in Wales sign up to our newsletter here.

Labour in Wales had consistently said, under the previous Conservative administration, Wales had lost out and should receive money in return. It continues to differ from the now Labour UK administration as Welsh secretary Jo Stevens recently told the Commons: "We cannot go back in time and change the way that project was commissioned, managed and classified by the previous Conservative government."

There has been a debate about exactly how much Wales has lost out on. Plaid Cymru had said it could be as much as £4bn, but earlier this year, Wales' then finance minister, Rebecca Evans, said the amount Wales had lost out on was £350m.

Eluned Morgan was again asked about the issue in Tuesday's Senedd plenary session. She said: "In terms of HS2, we are still putting pressure on the UK Government for fairness in terms of what's happened in relation to investment in that infrastructure. I don't think that figure of £4 billion is realistic, but I do want to be clear that those discussions are ongoing."

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