Commons Sense

House of Commons · Westminster Hall

Transport Funding: Wales and HS2

26 October 2021 · 7 other contributors · 12,737 words

Opened by Geraint Davies Lab Swansea West

Responding minister: Andrew Stephenson

TransportWales

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Geraint Davies raised concerns about transport funding: wales and hs2 in Westminster Hall. A government minister responded.

Key points

  • The Welsh railways have received only about 1.5% of the UK's rail enhancements funding over the past couple of decades.
  • The cost of HS2 has risen from 38 billion to potentially as high as 200 billion.
  • Wales needs its fair share of funding akin to Scotland's 91.7% proportionate share.

Key requests to Government

The Chancellor should provide Wales with its fair Barnett consequential funding, similar to Scotland's share of HS2 costs, allowing Wales to invest in critical rail infrastructure and support net zero initiatives. The Government must address the disparity between Wales and other regions by investing in rail enhancements to improve connectivity and economic productivity. The Chancellor must correct his mistake and give Wales a full Barnett consequential from HS2, similar to Scotland's treatment, which would fast-track Wales' benefit from levelling up. This is essential if levelling up is ever to be more than just a catchphrase for Wales.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Geraint Davies Lab Swansea West

The Welsh railways have received only about 1.5% of the UK's rail enhancements funding over the past couple of decades, despite Wales having 5% of the population and roughly 11% of the rail track length. The cost of HS2 has risen from £38 billion to potentially as high as £200 billion. Without a direct link between Crewe and Manchester, the benefits for Wales will be minimal compared to Scotland's share. Wales needs its fair share of funding akin to Scotland's 91.7% proportionate share. The current productivity in Wales is at 70%, with a need for shovel-ready schemes that can boost localised economies quickly. The project originally costed at £32.2 billion in 2012 is now nearing £108 billion, highlighting the failure of this Government to deliver and showcasing the inequality between England and Wales. Plaid Cymru argues that Wales should receive a full Barnett consequential from HS2 on the basis that it is an England-only railway project, and without such funding, Wales will lose out significantly. The south Wales region alone stands to lose approximately £100 million annually due to economic blight imposed by HS2.

Other contributors (7)
  • Craig Williams Con Montgomeryshire

    Craig Williams pointed out that his hon. Friend had not mentioned the Cambrian line, which is crucial for mid-Wales and connects to Birmingham. He urged reflection on how the Birmingham hub affects Wales and HS2's impact on mid-Wales. The Member argued against the premise that HS2 is not beneficial for Wales, stating that mid-Wales and north Wales's priorities are often overlooked. He emphasized the importance of economic connectivity with Birmingham and London. He highlighted the need for capacity improvements in the UK railway network, noting that investments like the Cambrian line improvement by Network Rail were essential. Mr. Williams reflected that a significant part of the Welsh railway network is actually in England, emphasizing Shrewsbury station's importance for Wales despite being located in England.

  • Helen Jones Lab Warrington South

    Helen Jones emphasised the need for HS2 to focus on capacity rather than speed, suggesting that the emphasis should be on bigger trains and thicker tracks. She highlighted the importance of connecting smaller towns along the route and criticised the lack of a direct link between Crewe and Manchester.

  • Jamie Wallis Con Bridgend

    Mr. Wallis believes HS2 presents an opportunity to build back better for the United Kingdom, benefiting Wales as well. He highlighted that businesses in his constituency are involved in Government infrastructure projects such as Hinkley Point C and HS2, providing job security and opportunities. He also mentioned inaccuracies in a Select Committee report suggesting no funds had been received by the Welsh Government from DfT spending on HS2; between 2015 and 2019, Wales received £755 million in Barnett consequentials. Jamie Wallis defended the current investment in electrification and new trains for south Wales, noting that his constituents benefit from shorter journey times to London. He also clarified that he is not arguing for less money for Wales but for a fair assessment of HS2's benefits to the UK economy.

  • Jim Shannon DUP Strangford

    He brought up the importance of considering Northern Ireland's connectivity to Wales, advocating for improved transport links between Belfast and Liverpool or Holyhead, in addition to internal Welsh improvements.

  • Jonathan Edwards PC Carmarthen East and Dinefwr

    Asked about the impact of HS2 on Scotland and Northern Ireland, considering that they receive 100% Barnett consequentials. Jonathan Edwards criticised the HS2 project for allocating Welsh taxes to an England-only rail infrastructure project, highlighting that Wales receives 0% of its population share in transport funding despite being home to 11% of the UK's rail network. He pointed out that while Scotland and Northern Ireland receive full entitlements from HS2, Wales suffers underfunding due to historical power retention at Westminster. Edwards argued for the devolution of rail powers to Wales to address these financial disparities. All schemes mentioned are noble, but the total percentage allocated to Wales is in question. Compared with investments across the rest of the UK, especially HS2, Wales is receiving minimal funding.

  • Liz Saville-Roberts PC Dwyfor Meirionnydd

    Liz Saville-Roberts questioned why the Severn tunnel is used as a dividing line for train speeds, with 125 miles per hour east of it and 100 miles per hour or less to its west. She challenged the rationale behind this speed disparity. She expressed concerns about the lack of north-south rail links in Wales, highlighting the irony that people use steam trains for such connections. She argued for investment in Welsh infrastructure to build the nation and strengthen Union connectivity. Ms. Saville-Roberts intervened to note that since last year, Transport for Wales has been under public ownership and suggested Network Rail should also be devolved to align spending more effectively. Liz Saville-Roberts highlighted the lack of electrification for lines from Holyhead into England, criticising the use of polluting rolling stock and arguing that this is not the transport infrastructure fit for the 21st century. The spend on infrastructure development in Wales is significantly lower than expected. The Barmouth Bridge in her constituency, over 150 years old, needs maintenance work. Argues that levelling up requires central Government investment for areas needing infrastructure most.

  • Tan Dhesi Lab Slough

    Mr Tan Dhesi advocated for redesignating HS2 as an England-only project to release up to £5 billion more in funding through the Barnett formula for rail infrastructure improvements in Wales. He highlighted the need for electrification and modernisation of railways in Wales, citing the cross-party Welsh Affairs Committee's recommendations and the environmental and economic benefits this would bring.

Government Response

Andrew Stephenson

It is a pleasure to serve under your chairmanship, Sir Edward. I thank the hon. Member for Swansea West and right hon. and hon. Members for their contributions. The Government are investing heavily in Wales with record £2 billion revenue settlement for Network Rail in Wales during the current control period, almost £1 billion of which will be spent on renewing and upgrading infrastructure to meet current and future needs, including the complete restoration of the iconic Barmouth viaduct. Investments include new stations such as Bow Street in Ceredigion, line enhancements across north, south and mid-Wales, major upgrades to Cardiff Central station, and level crossing upgrades on the Wrexham-Bidston line. The interim report of Sir Peter Hendy's Union connectivity review identified rail capacity and connectivity issues needing address in north and south Wales; £20 million was made available to assess options for road and rail schemes crucial for cross-border connectivity, with collaborative work ongoing between UK and Welsh Governments. Cardiff Central station is undergoing transformation funded by Network Rail and the Cardiff city deal, while the Cambrian line upgrade will bring digital signalling up-to-date, enabling new trains and seamless operation with other digital signalling schemes. Further investments include the Conwy valley line repair and restoration at £17 million, the north Wales metro strategy board to integrate transport improvements, proposals for reducing journey times on the north Wales coastline between Crewe and Holyhead, and strategic studies into timetable optimisation and connectivity into northern powerhouse rail and HS2. The Chancellor confirmed funding of £30 million for a global centre for rail excellence in Wales. Despite concerns raised about Wales benefiting from HS2, over 20 businesses in Welsh constituencies have already won work on HS2, including Wernick Buildings based in Port Talbot. HS2 will provide shorter journey times and free up capacity on the existing west coast main line for additional services, including rail freight. The Department for Transport has responsibility for heavy rail infrastructure policy across England and Wales, spending money directly rather than providing Barnett-based funding to the Welsh Government for heavy rail spending in England; however, due to departmental comparability factors in the Barnett formula spending reviews, the Welsh Government have received a significant uplift in their Barnett-based funding due to UK Government spending on HS2. Investing in Welsh transport infrastructure is an investment in future generations and a priority for the Government.

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