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| Conflict over High Speed 2 rail extra cash for Wales | |
| (about 1 hour later) | |
| There are conflicting claims from Welsh and UK governments over extra funding to Wales off the back of the High Speed 2 rail project in England. | |
| Finance Minister Jane Hutt told AMs there would be £35m extra in 2015-16 as a result of £832m spent on HS2, linking London and the north of England. | |
| Wales gets a share of fluctuations in transport spending in England. | |
| But the Treasury denies this, saying HS2 benefits the entire UK so Wales will not get extra cash in this case. | |
| Clarification is being called for amid claims Ms Hutt 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 - where she informed members of the extra cash coming to Wales - 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' | '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. |
| "At the spending round, Wales received Barnett consequentials in the normal way; this excluded funding for HS2," a Treasury spokesman said. | |
| "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. | 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." | 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. | "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. |