‘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.
Upgrade
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.”
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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London Labour are determined to gift the Senedd to Reform.
I suspect Reform will fully support this designation of it being an “England and Wales” project. However, Labour are doing an excellent job of turning people towards voting for Plaid Cymru at next year’s Senedd election, so there’s some positives to take from this.
Reform? Hopeless organisatio, we need a new party completely.
Now Rory Stewart has bottled out of forming a new party we just have to suffer under Labour for way too long
Well, knock me down with a feather duster. I’m really shocked….NOT! Add this to Keir’s love affair with nuclear weapons and we can see where the spending priorities are (and they certainly ain’t west of Offa’s). But don’t worry, that nice Mr Farage is coming through the Brynglas Tunnel and he’s going to spend lots and lots of cash in our towns and villages….NOT!
These air launched weapons, what flight path will they take next to deliver stand-off missiles, the B-52’s or the Tornados are now two obsolete delivery systems… Diplomacy might be the only option, the man from Cork needs to be questioned so as to ascertain his mental state, also his security risk… Clark is well and truly out of his phone box now with a new cash card in his back pocket. No sign of Superman yet though just a startled rabbit… My point, my vantage point, is the Mach Loop low level training, and to the ranges all the way… Read more »
This is about rail infrastructure funding in Wales and England. I have no idea why UK defence spending, which is vital for our protection here in Wales, has been brought into the conversation.
There is no external threat to The Nation of Cymru.
Our so called enemies have been created by the Wasteminster establishment.
Because UK defence spending is focused in England. Many years ago Blair’s government planned for a defence academy in Saint Athan to compensate Wales for the lack of military spending – but the Conservative government chose to build it in Wiltshire instead. (multiple links)
Original plan
https://www.walesonline.co.uk/news/wales-news/report-reveals-6000-jobs-boost-2083957
Moved to Wiltshire
https://www.walesonline.co.uk/news/wales-news/tories-accused-letting-wales-down-6397823
Given the relative differences in population, it’s inevitable that the lion’s share of any UK government pubic spending will be spent in England. Nevertheless, Wales is home to a number of important defence contractors.
Rail infrastructure is no different, with the majority of funding going to English rail projects. This is why Wales needs to have fully devolved powers over its own rail infrastructure, then we might see the sort of investment in North Wales that’s gone into the impressive South Wales Metro.
Per capita funding numbers and percentages exist to avoid “confusion” between disparate population sizes.
It’s absurd to suggest that spending under 2% of UK rail funding on 5% of the UK population is somehow justified because England has a larger population. It should be higher than population share because “levelling up” should mean something.
And the South Wales Metro only happened with EU funding.
Agreed.
Welsh rail infrastructure has been neglected by previous UK governments, and this is wholly reliant on decision-making in Westminster where Wales has even less MPs now than it used to.
The only fair solution is for No10 to agree to the requests by the current Welsh government for Wales to have full devolution of rail, plus an additional sum to cover the historic shortfall.
And whilst they’re at it: where is the promised replacement for the EU funding Wales used to receive?
There’s only one party who would prevent this from happening and it isn’t Reform.
Henry Tufnell the new Labour MP for Mid and South Pembrokeshire was appalled with the west Wales rail service after he had to use it to get to Westminster. His views were on his social media and in the local press. I wonder how he will respond to this piece of news?
Oh come on Geraint, Henry was only saying that in order to get the people of Haverfordwest, Milford Haven, Tenby and Pembroke Dock to vote for him. He has more pressing matters to concern himself with now, such as England’s economic development.
HS2 all over again. How much more of this do we take?
A £5bn rail project in the heart of England—badged as England and Wales.
Two Labour governments, one at each end of the M4, yet Wales is left out of the conversation again.
We are a nation, not a region.
Wales deserves control. Wales deserves independence.
I can highly recommend Tom Nairn’s book “The Breakup of Britain” to UK ministers. He proposes a well evidenced thesis that nationalisms arose in Europe in the 19thC that led to a spate of new nation states, all driven by a common theme: economic inequality. He examined Victorian Britain by the same metric and found that Scotland and Wales were net economic beneficiaries of Empire. However, he found that the same two nations suffered economic inequality as deindustrialisation took hold in the 20thC. Again, the same pattern of nationalidm arose.
Keep it up and the result will be the same.
In my more subversive moments I begin to imagine that the Starmer regime is buying into the “Greater Cymru” vision where Cymru gains independence and also walks off with a big chunk of that which was known as Mercia plus a slice of Wessex. Then I pull myself together and recognise that it’s just another piece of supremacist colonialist crap from London Labour.
C’mon Eluned do something other than mumble dissatisfaction. Declare an intention to seek a clean break.
I pose an open question to any Westminster politician: why is it not an all-Britain project, funding-wise, as it is one network spanning one island? Could it be that the SNP would actually kick up a stink over it and so you daren’t try?
If railways run as a “England and Wales” project gets hijacked by Whitehall and turned into a “railways for London” project that’s not a great advert for your all-Britain proposal, is it?
It’s a thought experiment illustrating the ridiculousness of an EnglandAndWales project in this regard. The geographical argument fails, as does the ‘local autonomy’ argument.
There’s no reason why centralised railways shouldn’t work well. In Spain, despite a much stronger devolution model their centrally run railways are modern and efficient with 2500 miles of high speed line connecting Madrid to many remote areas. In the UK there’s 70 miles of high speed line connecting London to .. the continent. That’s Whitehall’s priorities in a nutshell, because mandarins would rather lunch in Paris than get the rest of the UK economy working properly.
It’s a really great question, and one for a constitutional lawyer! A deeper understanding of UK public finances and how Barnett formula works is needed than what you’ll find on this forum! While it may seem intuitive to treat rail projects as an all-Britainproject, UK gvmt funding classifications are based where the direct benefits of spending occur AND whether it’s devolved. In the case of Oxbridge link, although it is entirely within England, it has been classed as an “England and Wales” project despite Wales not directly benefiting, as rail infrastructure is non-devolved here, so no Barnett consequential for Wales.… Read more »
It all serves to illustrate what a mess this rancid state really is.
The short answer is that rail infrastructure is devolved to Scotland and Northern Ireland, which is why these countries receive a Barnett consequential from Westminster spending in England, but not fully devolved to Wales, so we don’t.
Devolution shouldn’t be needed for fair funding, only to spend that money in ways that better reflect the needs of the local population. So any difference in rail funding between devolved vs reserved scenarios is a measure of the quality of Whitehall governance. A population share is the fairness minimum. A successful state would be spending proportionally more in Wales as part of an effort to level up the UK economy. What we actually have is in rogue state territory.
Yes, you’re right to say that devolution shouldn’t be required to ensure fair and proper funding for all parts of the UK, but clearly successive UK governments haven’t lived up to their responsibilities regarding rail funding in Wales.
The obvious answer, given that the mechanisms for delivery are already in place, is to fully devolve rail to the Welsh government.
Out! Now!!
When your party is in government, “fighting for” or “making the case” just won’t cut it.
The UK Labour Government’s decision to designate the proposed new Oxford – Cambridge railway an England – Wales project is absolutely outrageous, on par with the previous Tory government’s identical classification of HS2. It is a bare-faced lie, of course – flagrant and grotesque cheating and deceit and shows the utter contempt that the Westminster Labour government has for Wales. With an enormous 84% of the Parliamentary Labour Party being MPs representing English constituencies and Wales’ weak independence movement no threat to the UK, we can expect a lot more of it.
Westminster show nothing but contempt towards us. It’s an absolute disgrace, though sadly it’s no surprise.
First of all it was Tories who insult our nation now its liebour no difference how much more are we going to take being treated like dirt we need to get of this Union
Only a clearcut vote for Plaid Cymru at next year’s Senedd election can finally frighten Westminster into treating Wales with a tiny bit of respect.
For Labour, see Tories.
What’s Eluned, the patsy for Starmer got to say?
For Wales see England. When will this nonsense stop!
Have Labour no shame once defrauding the Wales but now twice in a row.Totally brazen and shows no respect for Wales and it’s people !
The HS2 designation of an England Wales project, although a bad deal for Wales on the whole, made some small sense as though it didn’t go into Wales it did release capacity at places that Welsh trains go to (Birmingham New Street, Crewe, Manchester Piccadilly) or offers an alternative to using non-HS2 trains that go to Holyhead from London Euston for example, adding seats for people who want to use this route. Then it got cut back to just the first phase and the benefits were even less to Wales as this lost the capacity release at Manchester and possibly… Read more »
Happening under a Labour UK government. This is the Barnett formula that is clearly NOT paying dividends to Wales according thanks to Britnats.
Unionism continues to rob us of development and growth while telling us to be thankful for it.
What we need in Wales is investing in greater north-south links. We need to rebuild the rail line from Carmarthen to Aberystwyth, and from Criccieth to Bangor.
The UK’s over-centralised economy in favour of London has harmed Wales for too long. The Beeching cuts of the 1960s deprived our nation of vital transport links. We need control of our own infrastructure projects. Our economy is suffering because we are being treated as second-class nation.
Section 184(c) of Schedule 7a the Government of Wales Act 2006 reserves planning of railways, but does not reserve railways that start, end and remain in Wales. In other words: Improving the rail infrastructure of the South Wales Valleys, or the Conwy Valley Railway are devolved matters because they are entirely within Wales. However, the Holyhead – Crewe, or the Swansea – London lines, are not devolved. Lets replicate this logic to England. HS2 is entirely within England, as is the Oxford to Cambridge service therefore should be designated as such an England only matter as per the above reservation.… Read more »
We both know the answer. Obliterate this ghastly state.
Nodweddiadol o Lywodraeth Llundain. Gorau po gyntaf y daw Cymru yn annibynol. Rydym yn cael ein trin yn ddinasyddion ail ddosbarth
If EWR project are classified as England and Wales scheme then why not to create new operator for get long-distance train service from Carmarthen/Swansea to Norwich/Great Yarmouth with calling at Llanelli, Swansea, Neath, Port Talbot Parkway, Bridgend, Cardiff Central, Newport, Bristol Parkway, Swindon, Oxford, Bicester Village, Bletchley HL, Stewartby, Bedford Midland, St Neots, Cambridge South, Cambridge, Cambridge North, Ely, Thetford and Norwich.
Direct train without changes in London.
That’s for example like that as above.
That can cover ‘England and Wales’ scheme.
Ex-RAIL Librarian.
Extend that route from Carmarthen to Aberystwyth under the EWR project and you have yourself a deal.
This is taking the proverbial. If this slur doesn’t get through to those deluded Labour supporters in Wales that Conservative Keir Starmer and blue Labour are Anti-Wales I don’t know what will?