Wales being short-changed by HS2, says Welsh Government as costs rise to £102.7bn
The Welsh Government’s Deputy Minister for Transport Mark Hooper has said new HS2 cost figures show Wales is being short-changed by the UK Government.
UK Transport Secretary Heidi Alexander confirmed on Monday 19 May that HS2 is now expected to cost between £87.7 billion and £102.7 billion.
The UK Government said about two-thirds of the increase is due to works missed from the original project plan, underestimation by previous governments and inefficient delivery, with the remaining third due to inflation.
HS2 is classified by the UK Government as an England and Wales project.
No track is being laid in Wales.
The classification means Wales does not receive a share of HS2 spending through the Barnett formula, which is the mechanism used to set the Welsh Government’s funding from UK Government spending decisions.
Mark Hooper said:
“The latest figures showing HS2 will cost up to £102.7 billion make it clearer than ever Wales is being short-changed by the UK Government’s approach.
“HS2 has been classified as an ‘England and Wales’ project, despite not a single centimetre of track being laid in Wales.
“This is not acceptable. Every pound denied to Wales is a pound that cannot be invested in the integrated, modern transport network that our communities deserve.
“Pursuing Wales’s fair share of funding is a central priority of this Government’s relationship with Westminster. We are committed to pressing the UK Government to right this wrong and ensure Wales receives the funding it is owed.”
Mr Hooper is one of the deputy ministers in the new Plaid Cymru minority Welsh Government, sworn in on 13 May under First Minister Rhun ap Iorwerth.
The UK Government said it had now confirmed HS2 trains will run at 320 km/h, rather than the 360 km/h originally planned, a change it estimates will save up to £2.5 billion and at least a year in delivery.
The first trains are now expected to run between Old Oak Common in west London and Birmingham Curzon Street between 2036 and 2039.
The full scheme from London Euston to Curzon Street, with a connection to the West Coast Main Line, is expected between 2040 and 2043.
UK Transport Secretary Heidi Alexander said:
“Taxpayers, passengers and communities along the route have been let down by years of mismanagement on HS2. I share their anger about the waste and mess, but I am proud that this government has worked with HS2’s new senior team to get this project off life support and on the road to recovery.”
The UK Government said a new assessment had found cancelling HS2 could cost as much as completing it, while delivering none of the benefits.
HS2 Chief Executive Mark Wild said the project had reached six major construction milestones ahead of schedule over the past year and had cut 300 bureaucratic roles.
The Welsh Government has long argued that HS2 funding consequentials would support transport schemes across Wales, including in the north.
Schemes in the funding pipeline for north Wales include the Deeside Parkway railway station, which is confirmed in design and currently being progressed through the Ambition North Wales regional growth deal.
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