Wales Set to Lose Out on Over £1 billion More in Transport Funding

Wales is set to lose out on over £1 billion more in transport funding over the coming years after the Welsh Liberal Democrats revealed that the UK Labour Government confirmed that Northern Powerhouse Rail will go ahead as an ‘England and Wales’ project.

Northern Powerhouse Rail, sometimes referred to unofficially as High Speed 3, is a rail project designed to enhance connections between major cities in the North of England, such as Liverpool, Manchester and Leeds. Not a single centimetre of the project will be based in Wales.  

The new scandal follows on from Wales missing out on billions of pounds in transport funding due to the clarification of various projects such as HS2 and East-West Rail (between Oxford & Cambridge) as ‘England and Wales’ projects, despite them not being based in Wales. This means Wales doesn’t receive consequential funding to spend on its own transport projects, whereas Scotland and Northern Ireland do. 

The latest decision is set to deprive Wales of between £1.34 billion - £1.59 billion in funding, on top of the up to £4 billion Wales has lost out on from HS2 and the between £306 million and £363 million from East-West Rail.

Combining losses from all three projects, Wales could be set to lose out on approximately £6 billion in transport funding, despite its own public transport infrastructure creaking at the seams.

Scotland is set to receive £2.7 billion as a result of Northern Powerhouse Rail whilst Northern Ireland is set to receive just under £1 billion. 

The Welsh Liberal Democrats have stated that the figure exposes Labour’s stance that Wales is getting fair funding when it comes to transport, because they will invest £445 million on rail in Wales over ten years, as “an absolute joke”.

The Welsh Liberal Democrats have repeatedly called on the UK Labour Government to devolve heavy rail to Wales, as it is in Scotland or Northern Ireland, to stop these repeated funding scandals, something Labour have repeatedly refused to do. 

The Lib Dems have also highlighted that the Government could simply classify the projects as ‘England only’ projects to trigger consequential funding. Something that was done frequently in the past, such as for Crossrail/the Elizabeth Line. 

The Labour Government has refused to commit to several rail projects in Wales, such as the electrification of the North & South Mainlines, despite previously supporting the projects before coming into Government. 

Commenting, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said:

“This Labour Government is deliberately depriving Welsh communities of billions of pounds in transport funding, whilst expecting a pat on the back for delivering crumbs. 

“Labour has the power to change the system and stop these funding scandals, but has made its position clear, they are happy for Wales to be left behind, paying for megaprojects in England whilst our own rail and transport infrastructure collapses. 

“The Welsh Liberal Democrats will continue to fight for fair transport funding that delivers for our communities and businesses.”

ENDS