Plaid calls for unfair designation of major rail projects to be addressed ahead of spending review

Emily Price

As the UK Government prepares its spending review, calls are being made for the “inconsistent and unfair designation of major rail projects” to be addressed.

It comes after it was revealed that a rail link between Oxford and Cambridge worth £6.6bn would be designated as an “England and Wales” scheme.

This is despite the project not extending into Wales.

The East West Rail link has been categorised this way because it falls within the rail network enhancements pipeline funding envelope.

This funding stream also paid for the redevelopment of Cardiff Central Station, improved level crossings in north Wales and upgrades to south Wales relief lines.

Impact

Plaid Cymru and the Liberal Democrats say the designation of the Oxford line and other major rail projects is impacting the allocation of transport infrastructure funding for Wales under the barnett formula.

The Treasury is also facing pressure over its controversial handling of HS2 funding.

Under the previous Conservative government the £100 billion high-speed rail link was classified as an “England and Wales” scheme despite none of the track crossing the Welsh border.

Plaid Cymru Treasury spokesperson, Ben Lake has demanded that the UK Government correct the misclassification of HS2 and the East West Project between Oxford and Cambridge.

The UK Government is expected to announce new funding for Welsh railways in its spending review next week.

Plaid Cymru has reminded Labour that they once agreed with them that over £4 billion was owed to the Welsh Government in HS2 rail consequentials through the barnett formula.

The Welsh Government’s most recent calculation of cash owed to Wales for HS2 currently stands at £431m.

Mr Lake says the Treasury’s “accounting fiction” has blocked Wales from receiving  funding that would otherwise have flowed to the Welsh Government as is the case for Scotland and Northern Ireland.

Plaid Cymru is therefore calling for:

• • The reclassification of HS2 and the East West Project (Oxford-Cambridge) as England-only infrastructure projects, reflecting the widely recognised injustice towards Wales;
  • A minimum of £4 billion in barnett consequentials to be paid to the Welsh Government, representing the funding Wales should have received had HS2 and the East West Project (Oxford-Cambridge) been correctly classified
  • A recognition that transport should be a matter for the Welsh Government, ensuring decisions are made in Wales and reflect Welsh priorities, not a continuation of a top-down approach from Westminster.

Mr Lake said: “Wales’ infrastructure is in severe need of investment, and its rail infrastructure could benefit significantly from enhancement funding. It is little under a year since the Welsh and UK Governments acknowledged that rail infrastructure in Wales has suffered historic underinvestment, and so it is difficult to accept the designation of both HS2 and the East West Rail Project between Oxford and Cambridge as ‘England and Wales’ initiatives.

“Neither project has been designed to deliver benefits to communities in Wales. Their designation as ‘England and Wales’ projects is fundamentally unfair, as it will deprive Wales of consequential funding that could be used to invest in its transport infrastructure.

“The UK Government has previously designated large rail projects in England, such as Cross Rail in London, as projects benefitting England alone, and if it were to reclassify HS2 and the Oxford to Cambridge projects in the same way, Wales could stand to gain billions in consequential funding.

“Any increase in capital investment in Welsh infrastructure would be welcome, but it is equally important that the inconsistent and unfair designation of major rail projects is addressed so that Wales does not continue to lose out. The Comprehensive Spending Review offers the UK Government an opportunity to put this right.”