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Row over HS2 spending share

Wales' Finance Minister is in a disagreement with the UK Treasury, over whether the Welsh Government was given extra money as a result of spending on the controversial HS2 rail scheme.

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Treasury says Wales did get some HS2 money but won't get much more

The Treasury has issued a further statement on the disagreement between Welsh and UK Governments over extra spending as a result of the HS2 rail scheme. Click here to read the background.

The Treasury now agrees that the Welsh Government HAS received a relatively small amount of extra money (£35m) because the Department for Transport's cash for HS2 came too late to change the formula used to decide how much money Wales gets.

But it's made clear the formula will be changed before there's any major spending on HS2 which means that Wales won't get any extra money if the project finally gets the go-ahead. A Treasury source described the dispute as 'overplayed.'

At the Spending Round in June, the Welsh Govt received a capital consequential of £84.5m. This was based on a £2bn increase in the total DfT capital budget. The Barnett formula calculation used the framework set out at the Spending Review in 2010, which set out 73.1% per cent of changes in DfT spending are subject to Barnett consequential for the Welsh Government. The framework is expected to be updated at the next full Spending Review, as is usual practice, and will reflect the latest information on departmental spending.

– Treasury spokesperson

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