News
'HS2 all over again': Oxford - Cambridge rail project classed as 'England and Wales'
Emily Price
A multi-billion pound rail project between Oxford and Cambridge will be classed as an England and Wales scheme, the UK Government has confirmed.
This means that despite East West Rail being entirely in England, Wales will not receive Barnett consequentials from the project.
The designation was uncovered in response to questions put forward by Brecon, Radnor and Cwm Tawe MP, David Chadwick.
The Liberal Democrat MP asked the Secretary of State for Transport, Heidi Alexander whether the £6.6 billion project - which will launch later this year - will be marked as an England and Wales scheme.
The rail link between Oxford, Milton Keynes, Bedford and Cambridge is set to be one of Britain’s largest transport projects.
It will provide easier and faster connectivity across the region, opening up better access to jobs and education opportunities, as well as regenerating town centres and supporting tens of thousands of new homes.
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The proposals include an upgrade between Oxford and Bicester, the reintroduction of a section of railway between Bicester and Bletchley, line refurbishment between Bletchley and Bedford and brand new railway infrastructure between Bedford and Cambridge.
In a written response to Chadwick, the UK Government said: "East West Rail is set to cover the route from Oxford to Cambridge and is therefore part of the Rail network enhancements pipeline (RNEP) portfolio which covers funding for projects in England and Wales.
"The RNEP portfolio can be distributed to any scheme across England and Wales."
The Welsh Liberal Democrats have branded the decision as "yet another example of Labour short-changing Wales on vital infrastructure funding."
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Funding
The party says that were Wales to be treated like Scotland, it could have received around £360 million in consequential funding to spend on transport projects in Wales.
It comes following the UK Government’s controversial handling of HS2 funding, where the £100 billion high-speed rail link was classified as an "England and Wales" scheme despite none of the track crossing the Welsh border.
The classification meant no consequential cash was released to Wales by the Treasury using the barnett formula.
This is usually determined based on whether the UK Government increases or decreases funding for departments that cover devolved areas.
In contrast, Scotland and Northern Ireland both received full funding uplifts.
Cash
The cash amount thought to be owed to Wales from HS2 was previously calculated by Plaid Cymru and the Welsh Government at billions.
But Welsh ministers have since revised that figure down to £350m.
The Senedd’s Finance Committee and academics at Cardiff University say Wales lost out on over £4 billion as a result of HS2 alone.
Until the General Election, Labour had publicly backed Wales receiving the HS2 money it should have been paid if the project had been correctly classified.
Scandals
The Liberal Democrats say rail should be fully devolved to Wales to ensure these "funding scandals" do not continue to happen.
David Chadwick said: "This is HS2 all over again. Wales is being denied hundreds of millions in funding that could transform our own rail network, all because Labour insists on cooking the books and pretending these projects benefit Wales when they clearly do not.
"East-West Rail is between Oxford and Cambridge. Not a single centimetre of track will be laid in Wales.
"Yet Labour expects people across Wales to believe the ridiculous idea that this project will benefit them, and they are justified in not giving Wales the money it needs to improve our own public transport systems.
"It’s a disgrace, and it shows there has been no meaningful change since in the way Wales is treated since Labour took power compared to the Conservatives.
"All we want is Wales to be treated fairly, to receive the same treatment as Scotland and Northern Ireland.
"The Welsh Liberal Democrats won’t stop demanding our fair share on behalf of the communities we represent."
'Exciting'
The Cabinet Secretary for Transport and North Wales, Ken Skates says the Welsh and UK Government are working together on "exciting" plan to deliver rail reform.
He said: "This is not new. The system used for paying for rail improvements puts Wales and Borders within a wider network which has historically disadvantaged us.
"Previous governments have failed to change that, but the current UK Government has acknowledged that it shortchanges Wales.
"Past Ministers could have delivered a fair funding settlement, but failed to. Instead, they backed HS2 with no fair funding for Wales.
"In stark contrast, the present UK Government has admitted that the Wales and Borders network has been underfunded in the past.
"We have an agreed and ambitious pipeline of improvements that will make up for underinvestment by previous governments.
"We are also working together on exciting plans for rail reform that will further strengthen the Wales and Borders network. We are seeking a fair share of investment."
'Systemic'
Plaid Cymru's Transport Spokesperson, Ann Davies says the classification of the new Oxford and Cambridge rail link was part of a "systemic issue that neglects Wales’ needs".
She said: "Claiming that a line between Oxford and Cambridge somehow benefits Wales is yet another insult to Wales under Labour. Years of underfunding by successive governments have left Wales’ transport network falling behind.
"However, let us be clear, this neglect isn’t accidental. It’s a deliberate policy choice that continues to deprive Wales of its fair share of infrastructure funding.
"HS2 is a clear example - despite not running through Wales, billions have been withheld due to a flawed classification by the Treasury that treats it as an England and Wales project.
"Before the general election, Labour agreed with us that Wales was owed its rightful £4bn of HS2 funding. However, now in government, they perpetuate this injustice.
"The recent confirmation of the East West Rail project between Oxford and Cambridge, also classified as an 'England and Wales' project despite not extending into Wales, will result in further millions of pounds of losses for Welsh rail infrastructure.
"This pattern of misclassification and Labour’s inaction to rectify these wrongs is a systemic issue that neglects Wales’ needs, showing just how little they care about the communities of Wales."
A Department for Transport spokesperson said: "Transport is an essential part of our mission to rebuild Britain, and improving rail connectivity in Wales is a key part of this.
"East West Rail is funded via our rail network enhancements pipeline which funds projects in both England and Wales. This includes the redevelopment of Cardiff Central Station, improved level crossings in north Wales and support for the upgraded South Wales Relief Lines."
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