Secretary of State for Wales criticised for defending ‘ridiculous and unfair’ rail funding

Ella Groves

A Plaid Cymru MP has accused the Secretary of State for Wales of defending a “ridiculous and deeply unfair” situation on rail funding.

The UK Treasury recently confirmed that Northern Powerhouse Rail will be classified as an “England and Wales” project – despite there being no track in Wales.

The decision mirrors the approach previously taken with HS2 and the Oxford-Cambridge rail line, where projects built entirely in England were designated as “England and Wales.”

Plaid Cymru argues that this categorisation prevents Wales from receiving the funding it is owed through the Barnett formula.

Ann Davies MP, Plaid Cymru Transport spokesperson, raised this issue during questions to the Secretary of State for Wales in the House of Commons on 21 January.

The Secretary of State for Wales, Jo Stevens MP, claimed in response that heavy rail projects “do not attract Barnett consequentials because heavy rail is reserved”.

Yet Plaid Cymru say that in 2022, as Shadow Secretary of State for Wales, Ms Stevens told the House of Commons it was “utterly illogical” to classify HS2 as an “England and Wales” project, pointing out that Crossrail was designated as England-only and arguing that HS2 should be treated the same way.

Speaking in the House of Commons, Ann Davies MP said: “The Treasury has confirmed that Northern Powerhouse Rail will be classified again as an England and Wales project depriving Wales of £1 billion in funding.

“Instead, we are being asked to celebrate £445 million spent over ten years in east Wales. This means no electrification beyond Cardiff. No new station for St.Clears, even though it was promised through Levelling Up, and no upgrades for Carmarthen station.

“So what influence can the Secretary of State bring to bear on the Treasury, so that the one and a half million who live outside of the investment areas, who are excluded, get the funding they deserve?”

The Secretary of State for Wales, Jo Stevens MP responded: “Heavy Rail projects in both countries are classified as England and Wales, whether the track is Wales, in England or in both. They don’t attract Barnett consequentials because heavy rail is reserved. Examples of such projects include Padeswood in north Wales and the regeneration of Cardiff Central Station.

“Surely, she must know that the economic corridor from north Wales to the north West is vital to regional integration, and the economic growth of north Wales and the scheme paves the way for more services, more regular services, and faster services across north Wales and the north West.”

Speaking after the session, Ann Davies MP added: “The Secretary of State for Wales is defending a situation that people across Wales can see for exactly what it is – ridiculous and deeply unfair. Projects built entirely in England are being paid for in Wales’ name, while communities here are told to accept stagnation and broken promises.

“These are about political choices by Labour. Choices that leave stations unbuilt, lines unelectrified and whole regions written off. Wales should not be subsidising rail infrastructure elsewhere while our own network remains chronically underfunded.”

“Unfairness”

The issue being raised in the House of Commons comes after both the Lib Dems and Plaid Cymru warned that Wales has been “systematically short-changed on rail investment, losing out on billions of pounds” as major rail projects based entirely in England have been classified as “England and Wales” schemes.

Last year there was outrage when the UK Government confirmed that the multi-billion pound Oxford and Cambridge rail line would be classed as an England and Wales project.

It meant that despite East West Rail being entirely in England, Wales would not receive Barnett consequentials from the project.

It came amid ongoing questions about the classification of the controversial HS2 rail scheme which was also earmarked as “England and Wales” despite not crossing the border.

During First Minister’s Questions on Tuesday (January 20), Baroness Eluned Morgan said she “wants money” from the UK Government for Welsh rail, adding that there was “unfairness in the system”.

She said: “We are a government that is committed to the devolution of rail infrastructure.

“It is important though that we recognise that if we want that, that the money follows.

“Because if you have it, without the money, you are setting yourself up for disaster.

“Let me be clear, I will keep pushing the UK Government on this. The deal we have had so far is an improvement on what we had before but it needs to go a lot further.”