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Politics

UK minister derails hopes of Wales receiving £4.6bn ‘owed’ from HS2

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A UK GOVERNMENT minister who said “something is amiss” with Wales missing out on HS2 funding has confirmed the nation will not receive a multi-billion-pound windfall.

Peter Hendy, UK minister of state for rail, gave evidence to the Senedd’s infrastructure committee today (October 16) – rowing back on his previous position on HS2.

Carolyn Thomas pointed to 2022 comments from Jo Stevens, now the Welsh secretary in the UK cabinet, who said it was illogical to designate HS2 as a Wales and England project and estimated Wales was owed £4.6bn in consequential funding.

The Labour Senedd Member also raised Lord Hendy’s 2023 comments that “something is amiss” with the way the Barnett funding formula is applied to HS2.

Labour MS Carolyn Thomas
Labour MS Carolyn Thomas

Lord Hendy replied: “At the time I made my previous comments, I wasn’t a minister in the government – now I am and… the whole way in which the Barnett formula and Barnett consequentials work is about the devolution statement and a matter for wider government.”

Appearing to read from a script, the life peer added: “Heavy rail is reserved in Wales, so that any heavy rail scheme the department delivers should always be classified as England and Wales when the formula is applied, which includes HS2.

“And that’s different from Scotland and Northern Ireland where heavy rail is devolved and, therefore, they do get Barnett-based funding.”

Lord Hendy told the committee this is consistent with funding arrangements for all the other policy areas reserved in Wales but devolved in Scotland and Northern Ireland.

He said: “The context of everybody’s remarks on this was the previous UK Government had not in fact given enhancement spending in Wales in any meaningful way and this one is.”

He would not comment on changes to the Barnett formula but clarified none are proposed.

Delyth Jewell, Plaid Cymru’s deputy leader in the Senedd, said: “You said your previous comments on HS2 were made before you were a minister. We appreciate that – the facts haven’t changed though, have they?”

South Wales East’s Plaid Cymru MS Delyth Jewell

Lord Hendy replied: “It’s very possible to interpret the Barnett formula as people have in your position as being disadvantageous…. I think what’s changed is that this government has decided to commit a very significant amount of money to rail enhancements in Wales.”

Pressed further, he added: “I’m a realist and pragmatist,” reiterating claims of a change in context since 2023 with UK ministers announcing significant investments in Wales.

Asked whether Wales has received “fair and reasonable” investment in rail infrastructure, Lord Hendy said: “This government recognises that railways in Wales have recently, historically, seen very low levels of enhancement spending.

“That’s why we’ve worked really hard with the current Welsh Government to put that right.”

The politician argued the UK spending review and ten-year infrastructure strategy recognise Wales’ long-term rail infrastructure needs, with at least £445m earmarked.

Lord Hendy, who chaired Network Rail for nine years, claimed: “I don’t think we’ve seen anything like the commitment to railway infrastructure investment… in the spending review.”

Llŷr Gruffydd, who chairs the infrastructure committee, asked: “Do you understand people’s frustrations in Wales that they feel that there’s an injustice here? Because, obviously, they see consequential money going to other parts of the UK.”

Plaid Cymru MS Llyr Gruffydd
Plaid Cymru MS Llŷr Gruffydd

Mr Gruffydd contrasted the £445m commitment with funding provided to regions of England which “firmly tells us we’re pretty much bottom of the table”.

Lord Hendy recognised frustrations but said: “Until recently, Wales got virtually no railway enhancement spending, now it is – so, I think that’s a significant improvement.”

Pressed about the £445m commitment being spread over a decade, the transport executive said the funding will cover new stations in south Wales and more services in north Wales. He stressed the fund is not constraining and it will be at least £445m.

He told the committee: “I think that actually –  out of a relatively limited total pot for England and Wales which is related to the state of the economy the government inherited when it took over a year ago last July – I believe this is a significant settlement.”

Asked whether the investment is enough to address historic underfunding of Wales’ railway infrastructure, Lord Hendy replied: “You have to start somewhere.”

 

Local Government

Labour reflect on disastrous Senedd election after Ceredigion Penfro wipeout

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FORMER First Minister Eluned Morgan, who failed to secure a seat in the 2026 Senedd elections in Ceredigion Penfro, has spoken of her “honour” to serve in the role.

In the May 7 battle for six seats in the new Ceredigion Penfro constituency, stretching from north of Aberystwyth to Angle in the southwest and Llanteg in the southeast, Plaid Cymru gained three seats, Reform two and Welsh Conservatives one.

The elections saw seismic political changes in Wales with Plaid in the majority and Labour losing heavily across the country, including Ceredigion Penfro where former First Minister Eluned Morgan or any other Labour candidates failed to secure a seat.

Since her loss, Eluned has said it was “the greatest honour of my life to serve as First Minister of Wales and to represent the people of Mid and West Wales in the Senedd”.

In a statement, she added: “Public service is never about one person. It is about the people and communities who place their trust in you, the staff and volunteers who work tirelessly behind the scenes and the shared belief that Wales can always move forward together.

“I want to thank everyone who has supported me throughout this journey – my team, colleagues, campaigners, friends, my family and above all the people of Wales for giving me the privilege to serve.

“To the new Welsh Government, I send my very best wishes. Whatever our political differences, I believe we all want the same thing at heart: a fairer, stronger and more confident Wales.”

Fellow Labour candidate in the Ceredigion Penfro Senedd elections, also a Pembrokeshire county councillor for Narberth, Cllr Marc Tierney described Eluned as “a champion for causes that matter to so many of us — speaking up for those who could not, often without fanfare but with quiet, steady resolve”.

He added: “Both Welsh Labour and UK Labour will now need to take stock. Now is the time to consider, in depth, the significance of the losses suffered, and take genuine and measurable steps to regain the confidence of the public who have placed their trust in us so many times before.

“Eluned has said that she takes responsibility for the defeat. But I believe it is wrong for her to carry that burden alone. Others must examine their role, and the entire movement must work out — in a challenging but respectful way — what must change if we are to offer a real alternative to the politics of division that has featured so prominently of late.

“Welsh Labour and its membership must be brave. Our shared values must underpin the next chapter.”

Eluned Morgan has now been replaced as interim Senedd Labour leader by Ken Skates.

 

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Nigel Farage faces standards probe over £5m gift

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Reform UK leader denies wrongdoing as parliamentary watchdog examines undeclared payment

NIGEL FARAGE is facing a parliamentary standards investigation over a £5 million gift from a major Reform UK donor.

The Reform UK leader, who has been MP for Clacton since July 2024, was referred to Parliamentary Commissioner for Standards Daniel Greenberg after reports emerged that he had received a previously undeclared payment from Thailand-based cryptocurrency investor Christopher Harborne in 2024.

The investigation is understood to relate to the rules requiring MPs to register relevant financial interests, including certain benefits received in the 12 months before entering Parliament.

Mr Farage has strongly denied wrongdoing and has said the money was a personal, unconditional gift connected to his safety and security, not his political activity.

A Reform UK spokesman said: “Mr Farage’s office is in communication with the Parliamentary Commissioner for Standards.

“He has always been clear that this was a personal, unconditional gift and no rules were broken.

“We look forward to this being put to bed once and for all.”

Mr Harborne has previously been identified as a significant donor to Reform UK. Reports say the £5 million payment was made before Mr Farage announced he would stand in Clacton at the 2024 general election.

The opening of an investigation does not mean Mr Farage has been found to have breached parliamentary rules.

However, the case is politically sensitive because of the size of the payment and because of Mr Farage’s prominent role as leader of Reform UK.

If the commissioner ultimately finds there has been a breach, the matter could be dealt with by correction in less serious cases, or referred to the Commons Standards Committee in more serious circumstances.

In the most serious cases, MPs can face suspension from the House of Commons. A suspension of ten sitting days or more can trigger a recall petition, potentially leading to a by-election if enough constituents sign it.

Mr Farage has previously been subject to a standards rectification process over late declarations of financial interests. The latest inquiry comes at a time of heightened scrutiny over political donations and party funding, with Reform UK under growing attention as it seeks to build on recent electoral gains.

Mr Farage remains entitled to the presumption that no breach has occurred unless and until the parliamentary standards process reaches a conclusion.

 

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Undoing Brexit? Critics say new King’s Speech bill could reopen EU divide

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Ministers accused of paving the way for closer EU alignment without full Commons scrutiny

THE UK GOVERNMENT has unveiled plans which critics claim could quietly reverse key parts of Brexit by allowing EU rules to be adopted into British law without a full parliamentary vote.

The controversial proposal was included in King Charles III’s speech to Parliament on Wednesday (May 13), through legislation titled the European Partnership Bill.

The Bill is designed to create a legal framework allowing future agreements between the UK and the European Union to be implemented more quickly — including planned deals on food standards, energy emissions and youth mobility.

Government officials argue the legislation is needed to support economic growth and strengthen ties with Europe after years of strained post-Brexit relations.

However, Brexit supporters and several commentators have warned the powers could allow ministers to sidestep meaningful scrutiny by MPs when adopting future EU-aligned regulations.

The move comes as Prime Minister Sir Keir Starmer signals a major shift in Britain’s relationship with Brussels following Labour’s difficult local election results last week.

Speaking earlier this week, Starmer said he wanted Britain back “at the heart” of Europe and described upcoming UK-EU agreements as a “big leap forward.”

Food, youth mobility and emissions deals planned

Negotiators are expected to meet in Brussels this summer for the second annual UK-EU summit, where both sides hope to agree new co-operation arrangements.

Among the proposed deals are:

• A new veterinary and food standards agreement designed to reduce border checks and ease imports and exports

• A closer emissions trading arrangement with the EU

• A youth mobility scheme allowing young Britons to live and work more easily across Europe

The Government claims the food agreement alone could boost the UK economy by £5.1 billion, with wider agreements potentially worth up to £9 billion overall.

Business groups including the British Chambers of Commerce have welcomed the proposals, arguing they could reduce costs for firms and consumers.

William Bain, the BCC’s head of trade policy, said quicker and simpler trade with Europe was essential for economic growth and lowering household prices.

Brexit fears reignited

Critics say the legislation could represent the clearest sign yet that Labour intends to gradually realign Britain with EU structures.

During questions from journalists this week, Starmer declined to rule out future membership of either the EU single market or customs union appearing in a future Labour manifesto — both previously ruled out under earlier Labour leadership.

That has fuelled speculation that Britain could move steadily closer to the EU over the coming years, despite Brexit remaining one of the most divisive political issues in modern British history.

The proposed youth mobility scheme has also drawn criticism from some immigration hardliners, who argue it could become a backdoor route to restoring freedom of movement.

The Government insists the plans are about practical co-operation rather than reversing Brexit itself.

But with ministers now seeking powers to rapidly introduce EU-linked regulations into domestic law, opponents say the political battle over Brexit may be far from over.

 

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