High Speed 2 Line: Finance
The question
To ask the Chancellor of the Exchequer, what assessment she has made of the merits of the application of the Barnett formula in Wales, in the context of HS2 spending.
Answered by Darren Jones
The Barnett formula is simple, efficient and provides a clear and certain outcome. This is why it has stood the test of time.
The result of Barnett formula is that the Welsh Government is receiving at least 20% more funding per person than equivalent UK Government spending in the rest of the UK. That translates into over £4 billion more in 2025-26.
HS2 is a heavy rail programme. The UK Government is responsible for heavy rail infrastructure across England and Wales, so spends money on this in Wales rather than funding the Welsh Government to do so through the Barnett formula. This approach is consistent with the funding arrangements for all other policy areas reserved in Wales, as set out in the Statement of Funding Policy.
The Government remains committed to heavy rail schemes in Wales, by providing funding for both operations, maintenance and infrastructure, and enhancement schemes such as modernising Cardiff Central Station.
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