Senedd Conservatives slam Welsh Government for HS2 'U-turn'

Emily Price

The Senedd Conservatives have slammed the Welsh Government for appearing to abandon calls for Wales' fair share of HS2 funding.

Speaking during questions to the Finance Minister, Mark Drakeford, on Wednesday (October 9), Shadow Finance Minister Peter Fox said the Senedd Tories position on HS2 had always been "clear"

He accused Labour in the Senedd of "clearly changing its tune" on its expectation of HS2 consequential payments after the party came into power in Westminster.

The high speed rail line had been classified as an England and Wales project by the previous Conservative UK government despite not an inch of track being laid in Wales.

The classification meant no extra funding was released to Wales by the Treasury - unlike Scotland and Northern Ireland which received additional funding.

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New figure

It was previously calculated that Wales is owed £4bn from HS2, but the Welsh Government has recently estimated the amount at the far smaller figure of £350m.

Mr Fox said the previous £4bn figure "bandied about" by Welsh Labour ministers would go a long way to improving Wales' "creaking infrastructure".

When Mr Drakeford was First Minister, he said the current funding system "simply doesn't work for Wales".

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Economic damage

Speaking in 2021, he said "With the HS2 programme, the comparability factor, which drives money through the Barnett formula for Scotland, is 100 per cent. For Northern Ireland, it is 100 per cent.

"For Wales, it's 0 per cent, despite the fact that HS2 does not enter Wales at any point, and the UK Government's own analysis shows that it is more likely to do economic damage to Wales than to do economic good."

He told the Chamber today that the Welsh Government's £350m estimation reflects the amount already "spent and committed" to the project.

Mr Fox argued that Labour MSs had previously said Wales was underfunded by "billions" of pounds in relation to HS2 and even Welsh Secretary Jo Stevens had previously called on Westminster to "cough up" the billions owed.

The shadow finance minister said that now Ms Stevens had been "promoted" she had abandoned those calls.

He said: "You can understand why people are quite confused when we banter about these large figures of £5 billion or £6 billion and then we’re down to £350 million."

Difference

Mr Drakeford said the HS2 prospectus goes well beyond the current spending review.

He said: "If there is to be more money spent in the future, then our view is that it too should generate money that would come to Wales. Depending on how much is spent, that figure will be significantly higher than the £350 million.

"The £350 million is what we think we should have had already, because that’s money that’s already been committed and has already been spent. There will be money spent in the future and that explains some of the difference in the figures."

Mr Drakeford said the Welsh Government's previous position on HS2 had not changed.

He said he was looking forward to discussions with UK colleagues as to how HS2 consequential funding can be "put right" adding that he would also be discussing other investments that need to come to Wales to sustain core valley lines.

Vocal

Plaid Cymru slammed the Welsh Conservatives for suddenly ramping up their calls for HS2 rail funding when it was their own party that designated it as an England and Wales project.

Transport spokesperson Peredur Owen Griffiths said: "They were never as vocal in their support for HS2 funding when their Westminster counterparts were in power in London. Much like Labour in Wales, they will only be vocal in their calls for fair funding when politically convenient.

"It is as clear as ever now that it is only Plaid Cymru will stand up for the fairness Wales deserves - and we'll do that every day, unconditionally."