Wales’ First Minister continues to advocate for funding from the UK Government for the HS2 rail development, despite the Treasury’s recent decision not to reconsider the matter. The Treasury, led by the Labour party, confirmed that it will not reclassify the HS2 project or provide financial support to Wales through the Barnett formula. A spokesperson stated that the UK Government’s responsibility for heavy rail infrastructure means it invests in projects in Wales rather than providing direct funding to the Welsh Government.
The classification of HS2 as an “England and Wales” scheme by the UK Treasury has been a contentious issue between the two governments. This classification led to Wales not receiving consequential funding under the Barnett formula, unlike Scotland and Northern Ireland. Although no HS2 track was planned for Wales, the Welsh Government has argued that Wales should still benefit financially from the project. Previous estimates suggested Wales could have lost out on billions of pounds, while the former finance minister, Rebecca Evans, put the figure at £350 million earlier this year.
In a recent Senedd plenary session, First Minister Eluned Morgan reaffirmed Wales’ position on the matter, stating that discussions with the UK Government are ongoing. She emphasised the importance of fairness in investment in infrastructure and acknowledged that while the £4 billion figure may not be accurate, Wales deserves appropriate consideration in the matter.
The Labour administration in Wales, led by Jo Stevens, has been vocal about the need for Wales to receive equitable funding, especially following the cancellation of parts of the HS2 project by the previous Conservative government. The ongoing debate highlights the complexities of intergovernmental relations and the challenges of ensuring fair distribution of resources among the UK nations.
Despite the setbacks, Wales’ commitment to securing funding for the HS2 rail development remains resolute. The First Minister’s efforts to hold the UK Government accountable for its investment decisions reflect a broader push for equitable treatment and financial support for Wales in key infrastructure projects. As discussions continue, the spotlight remains on ensuring that Wales receives its fair share of funding and resources for vital transportation and development initiatives.