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Confusion over HS2 cash for Wales Conflicting claims over Welsh HS2 cash
(about 14 hours later)
There is confusion about whether Wales has received extra funding as a result of the High Speed 2 rail project. 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 categorically denied this, saying that HS2 spending is not being passed on. But the UK Treasury has denied this, saying HS2 spending is not being passed on.
Ms Hutt is now facing calls for an urgent clarification amid claims she may have misled AMs. 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.
Clarification 'crucial' '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.