First Minister says Wales will receive extra rail funding to correct HS2 ‘injustice’
The UK Government has recognised Wales has been “hard done by” and will provide new funding for rail, the Welsh First Minister said.
Eluned Morgan announced that Wales will get extra cash to fund rail projects after UK ministers admitted Welsh railways were underfunded.
Politicians in Wales have complained that the country has lost out over the HS2 project, for which Wales received no additional funding.
Baroness Morgan declined to say how much money the country will get but said she hopes it will be “significant”.
Enhancement spending
In a letter to the Welsh Government, Transport Secretary Heidi Alexander admitted Wales has had “low levels of enhancement spending in recent years”.
HS2 has caused tensions in Wales since it was first announced, with the scheme having been designated an England and Wales project despite no track being laid in the latter country.
If it had been labelled an England-only project, Wales would benefit from additional funding, which Plaid Cymru estimates to be worth around £4 billion.
Speaking on BBC Radio Wales on Wednesday, Baroness Morgan, the Labour leader of the Welsh Government, said: “For the first time, the UK Government has recognised that we have been underfunded.
“(We’ve had) a letter from Heidi Alexander saying, ‘OK, something isn’t right here’.
“Now there is a discussion about what we are going to do about it, ‘where are your projects so we can invest’.”
New stations
She said the funding was likely to come in the form of new stations and rail infrastructure, but did not specify where.
Asked how much funding Wales is going to get, Baroness Morgan said she hopes “it’s going to be significant” but did not specify an amount.
“We haven’t got to the numbers, but I can’t tell you what a massive step forward this is,” she said.
“For the first time they’re recognising ‘you’ve been hard done by.’”
However, Plaid’s Llyr Gruffydd MS, argued the First Minister had misrepresented the letter.
He said: “It doesn’t reference the unfairness of HS2 nor does it say Labour will right the wrong of the full £4 billion consequential owed to Wales.
“Eluned Morgan is conflating two very different issues.
“If Labour were serious about giving Wales fair play, then they would give us the full £4 billion we are owed, just as they said they would.”
Investment
Mr Gruffydd said Welsh railways are in “desperate need of investment” and Wales needs full power over the network, as is the case in Scotland.
Ms Alexander’s letter, which has been seen by the PA news agency, said: “We recognise that railways in Wales have seen low levels of enhancement spending in recent years, particularly in the context of major investments such as HS2.”
She said the UK Government will prioritise projects proposed by the Wales Rail Board, which will inform the Treasury’s Spring Spending Review.
However, Ms Alexander said the Chancellor has been “clear” on the position of public finances, which “must be addressed as a matter of urgency”.
She added ministers agreed with the Transport Commission that the priority should be on North and South-East Wales.
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“Dear Eluned, sorry about all this, I’m pleased to say that we are considering rebranding Newport railway station as “Upper Starmer Junction”, complete with a state of the art latte machine and blue water in all the toilets! I know you will be overjoyed and Keir will shortly confirm his attendance at the “first flush”! – Love loads, in socialism, yours sisterly, Heidi” !
Cymru was owed an estimated £4bn in compensation but the Welsh Government reduced it to £350m!!! Am I reading that correctly? Is there something wrong with the WG? Have they lost their minds?
But the £4bn is a proper ‘cake and eat it figure from Plaid. Railway infrastructure isn’t devolved in Wales, but if it was, you have costs as well money from HS2. Whilst railway funding is horrendously complex and commercially sensitive, the majority of Network rail’s expenditure in Wales comes from Westminster funding, and not via passenger revenue. 350m is far more realistic
I won’t hold my breath waiting for 4billion. I bet the baroness sells Cymru short
Closer to £350 million I reckon and we’ll be expected to be eternally grateful. Change the old nasty racist rhyme from “Taffy was a Welshman….”. to “Heidi is a Saesnes, Heidi is a thief …..”
What a total Welsh Labour copout? Any so-called “extra funding” will not come anywhere near to the billions stolen by Whitehall that should be coming to Wales over the lifetime of the HS2 project. The money is rightfully ours! Add insult to injury. Not good enough Eluned Morgan. You & Labour are an abject failures. Wales deserves better leadership.
Not only HS2 monies that are due but funding from Network Rail for 20 years of underfunding of maintenance and capital investment. Wales has never had 5% population share funding, been closer to 1%.
The Welsh Government budget was used to reopen the Ebbw Vale line when Westminster had responsibility and they dragged their feet on funding the re-opening into Newport.
Wales is being sold down the river by the Labour party in Wales and Westminster
The UK government’s admission that Wales has been “hard done by” and its promise that Wales will receive some additional rail funding is a step in the right direction. The simplest and fairest way to benefit Wales is for the UK government to re-classify HS2 as an England-only project automatically enabling Wales to receive HS2 Barnett consequentials as do Scotland and Northern Ireland. Surely, the Welsh government has a duty to put relentless pressure on the UK government not to apply grossly unfair double standards to the 3 Celtic countries, that invariably discriminates against Wales.
Some of the missing cash must have gone on the Party Political love in for the FM that was broadcast today.
Is this start of Labour panic response to polls.
Proper love in that was !
Ten years ago Network Rail promised to upgrade Cardiff Central to cope with events.