Chancellor of the Exchequer Nadhim Zahawi gave a muddled and misleading response when challenged about Wales being the only country to miss out on funding from HS2. A previous comprehensive analysis by WalesOnline showed how Wales was being entirely overlooked when it came to rail funding (you can read the full breakdown here ).
Though more than £96bn will be spent on HS2 in England successive Tory-led administrations at Westminster have decided that Wales is not entitled to a consequential share. In 2015 David Cameron's government applied a 0% comparability factor for Wales to HS2 spending. This means Wales gets no extra funding at all, though Scotland and Northern Ireland are both getting a huge amount.
It can't be underestimated just how much Wales is being ripped off here. If it got its fair share like Scotland and Northern Ireland then Wales would be getting £5bn in funding. This could fund the south Wales and Swansea Bay metros, integrate north Wales with lines with Merseyside, and connect Aberystwyth and Swansea via train. However the UK Government has decided to class HS2 as a Wales and England project despite the face not a centimetre of track will be laid in Wales.
Read more: The UK government email that seems to sum up how little they care about Wales' rail network
WalesOnline had a chance to interview the chancellor on Friday, August 12. He was visiting Wales after coming under criticism for perceived in action as the cost of living crisis unfolded. Speaking on the phone WalesOnline asked him:
"Regarding HS2, Wales isn't going to be getting a Barnett consequential but Scotland and Northern Ireland are because it's been classed as an England and Wales project. This is despite the fact Crossrail wasn't considered a benefit for Wales and there's going to be no HS2 to track in Wales at all. How is this justifiable that this is going to be defined as the England and Wales project with Wales being the only UK nation to miss out on this funding boost?"
To this the Chancellor replied:
"So Wales has had obviously a record funding on the Barnett formula. I think it's about £18bn if I'm not mistaken. And of course Wales has benefitted from the Shared Prosperity Fund that has already delivered north of £600m as well. We will of course make sure that Wales is getting, obviously, a major terminal as well. So we want to make sure that Wales gets the benefits."
Right: where to begin with this? Let's take each point in turn. It is worth starting by saying that he didn't address the actual question which was why the project was classified as England and Wales.
Next he talked about how Wales had received money from the Barnett formula. It is fair to say that the money from the Barnett formula has increased in recent years but that was mainly due to increased spending due to Covid. It also worth bearing in mind that this isn't money from England just given to Wales. People in Wales also pay into the coffers through their taxes. Of course Wales receives more than it puts in but so do most areas of the UK outside of London. If an area of England was being unfairly underfunded through an accounting sleight of hand (which is basically what HS2's Welsh classification is) you couldn't just say: "Well it receives some taxpayers' money so don't complain".
The Chancellor also pointed to the Shared Prosperity Fund. Yes Wales does receive money from that but this is just the money it used to receive from the EU but under a different name. The only real difference is now the UK Government decides where it is spent in Wales rather than the Welsh Government. The point he makes about Wales getting a "major terminal" is bizarre because it simply isn't happening.
WalesOnline replied saying:
"The shared prosperity fund was money that Wales would have been receiving anyway. And Wales has been historically underfunded in terms of capital investments in rail. Why is Scotland getting a Barnett consequential from HS2 but Wales isn't?"
Mr Zahawi replied:
"Wales is obviously getting, just across the border, the major terminal for HS2. And I think that will make a difference in the Welsh economy. The Barnett formula has delivered for Wales a record amount of funding £18bn. So I think that that's also worth reminding ourselves of that record amount of investment in Wales. I'm in north Wales today and looking at what Airbus are doing here with the additional £100m investment for 550 more jobs. The defence industry in Wales was one of the most important sectors here, doing incredible things, with the MOD investing over a billion pounds in the Welsh industry.
"The four nations benefit from the strength of the UK economy and the resilience of the UK economy, including by the way on cost of living – it's only because we have such a resilient United Kingdom economy that we can deliver the £37bn of help and we're looking to go even further."
There is a lot to unpack there so WalesOnline tried to ask a follow-up question only to be told that we were "at time". When we requested one more question we were told: "The Chancellor's got a very busy schedule but thank you for your time."
Right – okay. Well let's break down what he did say.
He did remedy his error about a major terminal in Wales. The terminal will actually be in Crewe. This terminal will be supplying the only benefit the UK Government have ever cited Wales will receive from HS2 – quicker trips from north Wales to London. However this will be offset some what in that HS2 will hit the south Wales economy negatively because of a reduction in capacity to that part of Wales (this comes from the Treasury's own analysis).
All he says about the UK economy has utterly no bearing what so ever on why HS2 has been classified as an England and Wales project – especially as there is a strong argument that Scotland actually benefits more than Wales. Finally their refusal to even engage in further questioning about this massive issue affecting Wales is telling. Avoiding reasonable and legitimate scrutiny is not respectful to the union – it directly threatens it.
READ NEXT:
- Family want answers for mum who died seven weeks after hospital admission
- Dad dies of cancer after working at Welsh power station as family demand answers
- Public support for nurses who plan to strike for first time ever
- The big debate over whether you should park outside other people's homes
- Wizz Air cancels most flights from Cardiff Airport until April 2023
