Recommendation 15

HS2 is one of the largest infrastructure projects ever undertaken in the UK. It is a project of unprecedented size and complexity and has already created several thousand jobs as part of a supply chain that spans the country, including Wales. However, as rail infrastructure is not devolved, beyond the core valleys lines, to the Welsh Government, Wales will not benefit in the same way as Scotland and Northern Ireland from Barnett consequentials arising from the HS2 project. This is despite the fact that UK Government’s own analysis has concluded that HS2 will produce an economic disbenefit for Wales. We recommend that HS2 should be reclassified as an England only project. Using the Barnett formula, Wales’ funding settlement should be recalculated to apply an additional allocation based on the funding for HS2 in England. This would help to ensure that Welsh rail passengers receive the same advantage from investment in HS2 as those in Scotland and Northern Ireland.