Written question WQ96893
- Asked by
- Heledd FychanPlaid
- To be answered by
- Cabinet Secretary for Finance and Welsh Language
- Tabled
- Due
- Answered
- Time to answer
- 7 days
Question
Further to WQ96790 and remarks in the Senedd on 25 June 2025, will the Cabinet Secretary set out the exact figure for the consequential funding provided to Wales through the UK Government's spending review as a result of the East West Rail project?
Answer
Answered by Cabinet Secretary for Finance and Welsh Language
The Barnett formula comparability factor with the Department for Transport in the recent UK Spending Review was 0.4 percentage points higher than it would have been if the East West Rail project had been deemed non-comparable. The impact of the Barnett formula on Welsh Government funding depends on both the comparability factor and the change in funding for the relevant UK Government department. In the recent Spending Review, the Department for Transport saw an increase in its capital budget but a reduction in its resource funding. The higher comparability factor meant additional capital funding through the Barnett formula of £2.3 million over the period 2026-27 to 2029-30. On the resource side, the higher comparability factor led to negative consequentials because the Department for Transport’s resource budget as a whole was reduced. Comparability with East West Rail therefore led to a reduction in resource funding totalling £0.3 million over the period 2026-27 to 2028-29.