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Conflicting claims over Welsh HS2 cash | |
(about 14 hours later) | |
The Welsh and UK governments have given conflicting claims about whether Wales has received extra funding as a result of the High Speed 2 rail project. | |
Finance Minister Jane Hutt has told AMs there was a £35m budget increase coming in 2015-16 as a result of £832m UK expenditure on HS2. | Finance Minister Jane Hutt has told AMs there was a £35m budget increase coming in 2015-16 as a result of £832m UK expenditure on HS2. |
But the UK Treasury has denied this, saying HS2 spending is not being passed on. | |
Clarification is being called for amid claims Ms Hutt she may have misled AMs. | |
The issue of whether Wales should receive additional funding from the HS2 rail project has been at the centre of a bitter political wrangle in recent years. | The issue of whether Wales should receive additional funding from the HS2 rail project has been at the centre of a bitter political wrangle in recent years. |
Ms Hutt's statement to the assembly's finance committee was welcomed as a breakthrough by campaigners from across the political spectrum. | Ms Hutt's statement to the assembly's finance committee was welcomed as a breakthrough by campaigners from across the political spectrum. |
It would have meant around £35m extra for Wales in 2015-16 and set a precedent for potentially billions more over the lifetime of the project. | It would have meant around £35m extra for Wales in 2015-16 and set a precedent for potentially billions more over the lifetime of the project. |
But the Treasury said the Welsh government's claim was mistaken - and HS2 was excluded from what is known as "Barnett consequentials". | But the Treasury said the Welsh government's claim was mistaken - and HS2 was excluded from what is known as "Barnett consequentials". |
Under that process, if extra money is spent on projects in England in services that are devolved in Wales, such as health or education, Wales receives a slice of extra money too. | Under that process, if extra money is spent on projects in England in services that are devolved in Wales, such as health or education, Wales receives a slice of extra money too. |
'Crisis of confidence' | |
That process would normally include transport spending - but not in the case of HS2, according to Treasury officials. | That process would normally include transport spending - but not in the case of HS2, according to Treasury officials. |
A UK Treasury spokesperson said: "At the spending round, Wales received Barnett consequentials in the normal way; this excluded funding for HS2. | A UK Treasury spokesperson said: "At the spending round, Wales received Barnett consequentials in the normal way; this excluded funding for HS2. |
"The government is clear HS2 will be a vital part of our national infrastructure, boosting regional growth across the country and providing vital capacity the UK needs to compete in the global race. | "The government is clear HS2 will be a vital part of our national infrastructure, boosting regional growth across the country and providing vital capacity the UK needs to compete in the global race. |
"As with any government spending Barnett consequentials will be considered at the next spending review." | "As with any government spending Barnett consequentials will be considered at the next spending review." |
Plaid Cymru MP Jonathan Edwards said the issue potentially raised questions about the finance minister's competence. | |
The MP for Carmarthen East and Dinefwr said: "For them [Welsh government] to claim that Wales has had a fair share...and for that to be incorrect would be an absolute crisis of confidence I believe in the finance minister." | |
"I've made many comments on the floor of the [House of] Commons that the Treasury is running rings around the Welsh government and if I was Carwyn Jones I'd certainly be asking questions about whether that minister is competent to hold that post," he told BBC Radio Wales. | |
A spokesperson for the Welsh Liberal Democrats said: "It is crucial that the finance minister clarifies this issue as soon as possible because if what the Treasury says is true, the finance minister has misled the finance committee. | A spokesperson for the Welsh Liberal Democrats said: "It is crucial that the finance minister clarifies this issue as soon as possible because if what the Treasury says is true, the finance minister has misled the finance committee. |
"Assembly members expect the information provided to them by the Welsh Government to be accurate and correct." | "Assembly members expect the information provided to them by the Welsh Government to be accurate and correct." |
Figures obtained by the BBC under a Freedom of Information request showed that Cardiff could potentially lose £70m in economic output once a high speed rail link opened between London and the north of England. | Figures obtained by the BBC under a Freedom of Information request showed that Cardiff could potentially lose £70m in economic output once a high speed rail link opened between London and the north of England. |