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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

Fresh call for devolution of Crown Estate assets in Wales backed by county councillors

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A FRESH call has been made for Crown Estate assets in Wales to be devolved to the country, a call backed by Pembrokeshire councillors last year, after it made £210m profit this financial year.

Today, June 26, the Crown Estate published its annual review, also releasing a Wales-specific review, showing that, in 2025-’26 its profits in Wales were £210m, up from £8.7m in 2020-’21.

Plaid Cymru Westminster Leader Liz Saville Roberts said that Plaid Cymru – which has long campaigned for the assets to be devolved – has a “mandate to keep fighting for fairness” with devolving the Crown Estate being a position held by every council in Wales.

The new Plaid Cymru Welsh Government is also pursuing control over natural resources, in line with Scotland, where the Crown Estate was devolved in 2017.

Ms Saville Roberts said that profits from Wales’ natural resources being sent to London is a “striking injustice” and that the next UK Government “must take steps to devolve the Crown Estate to Wales”.

Back in 2025, Pembrokeshire County Council joined other Welsh councils in supporting the Crown Estate assets in the county being devolved to its people.

The Crown Estate owns 65 per cent of Wales’ riverbeds and beaches.

Proceeds from the Crown Estate, which dates to the 17th century, are split by 25 per cent funding the Royal Family and 75 per cent to the UK Treasury.

Responsibility for the Crown Estate is already devolved to the Scottish Government, which has previously been reported as generating £103.6 million into the public coffers in Scotland in 2023.

A sticking point in Wales is that Westminster has to date been against any change.

A successful notice of motion before Pembrokeshire County Council, by Plaid Cymru councillor Michael Williams said: “We ask PCC to support the proposal for the Crown Estate assets to be devolved to the people of Wales, so that profits can be used to invest in the economy and communities of Wales.

“A poll in 2023 showed that 75 per cent of the population were in favour of taking control of the assets of the Crown estate rather than the profits going to the Treasury and the Crown.

“Local authorities are under huge financial pressure and placing the Crown Estate in the hands of Wales would be a significant step to address the lack of investment in our local government.

“We call upon the Welsh Government to ask Westminster to devolve the assets and revenue of the Crown Estates as a matter of urgency, as was done in Scotland in 2017.

“We demand that Wales is treated fairly and accepts management of the Crown Estate land for the benefit of the people of Wales.”

Councillors have previously heard the Crown Estates derives nearly £60,000 from some 16 leases in Pembrokeshire.

The £59,005 quoted at the time includes £26,600 for foreshore lease agreements, £8,520 for the land around Haverfordwest’s Riverside Market, and £12,800 for a sailing centre and car park at Cosheston Pill near Pembroke Dock.

 

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Local Government

More than 2,300 housing units in more than 100 schemes in limbo

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MORE THAN 100 development schemes in Pembrokeshire, amounting to more than 2,300 homes, are in limbo due to the ongoing Nitrogen Neutrality guidelines from Natural Resources Wales, councillors heard.

At the June meeting of Pembrokeshire County Council’s services overview and scrutiny committee, members received an update on the ongoing issue of Nitrogen Neutrality which has led to delays in many housing schemes in the county since its introduction last June.

The area which development is required to demonstrate nitrogen neutrality is approximately 75 per cent of the county, including Haverfordwest, Narberth, Pembroke and Pembroke Dock.

The report, presented by Cabinet Member for Planning and Highways Cllr Jacob Williams, focussed on the implications of Natural Resources Wales’ (NRWs) Nutrient Neutrality requirements in respect of dissolved inorganic nitrogen (DIN) for development within the Milford Haven Inner waterbody catchment of the Pembrokeshire Marine Special Area of Conservation (SAC) and the measures being taken by the council at a local level to address this issue as well as the council’s contribution to regional and national initiatives.

The report said that, as of May, there were 21 planning applications which were in the system before the introduction of nitrogen neutrality requirements (June 2025) which are now caught and which remain undetermined, along with a further 66 undetermined since that date, and a further  15 applications which are caught by nitrates requirements, but which have not yet reached eight-week determination date.

It said the 102 developments caught by the nitrates issue amounted to some 35 per cent of the total undetermined applications; that figure even higher when determined (refused) schemes were taken into account.

Cllr Williams, who last year with the backing of full council, wrote a letter to the First Minister, conveying the authority’s “great concern over Natural Resources Wales’ recent river nitrates guidance in relation to development, and the serious effects this is having,” said that amounted to 2,376 of 6,741 potential housing units, adding that “Pembrokeshire County Council cannot approve development which is unable to demonstrate Nitrogen Neutrality”.

Last October, Cabinet endorsed an action plan to address the nitrates issue for affected development within its planning area, the early stages already delivered, with a final report due for Cabinet consideration this September in order to determine how mitigation opportunities identified might be taken forward.

Members backed a recommendation to note the action plan progress ahead of the report to Cabinet.

 

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Local Government

Call for 1979 Castlemorris holiday let to be used as a home 

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A CALL to allow a Pembrokeshire holiday let, part of a 1979 conversion scheme, to be used as a home for a recently married couple has been submitted to county planners.

In a certificate of lawfulness application to Pembrokeshire County Council, Ethan Tyrer seeks permission for the use of holiday let The Cottage, Llangloffan Farm, Castlemorris, as a residential dwelling.

A supporting statement accompanying the application says: “We are seeking a Certificate of Lawfulness to permanently live in the above address. My wife and I got married last October and we are trying to buy our home.

“Our offer has been accepted by the seller of The Cottage and we have a mortgage approved. The only thing that is holding up our exchange and completion is the planning issue.

“We just need legal certainly that we can live in the property as our permanent place of residence for the mortgage company. All the other properties at Llangloffan Farm are permanent dwellings so it makes sense that the cottage would be too. There is ample parking and a good-sized garden and the property is fully serviced and all ready to live in.

“We run a small local business (window cleaning) so our main work is in the vicinity of Fishguard, Goodwick and Porthgain so this property is the perfect location for our work.

“We are currently living with my parents which isn’t ideal and creating a bit of a strain on both of us. We just desperately want to be in our own home.”

It says an original 1979 application was granted to convert a range of outbuildings at Llangolffan Farm to form four units of holiday accommodation.

“We have taken pre-planning application advice and understand that it is considered that planning permission would not be required for the use of the building as a permanent dwelling house. However, for legal certainty a submission of a section 73 application [to vary or remove a condition of that scheme] would be needed.”

It finishes: “Our mortgage offer expires in September, so we are quite anxious to get this sorted as soon as feasibly possible.”

The application will be considered by county planners at a later date.

 

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