Wales: Public Services Debate

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Department: HM Treasury

Wales: Public Services

Baroness Humphreys Excerpts
Tuesday 5th November 2024

(2 weeks, 2 days ago)

Lords Chamber
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Lord Livermore Portrait Lord Livermore (Lab)
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The Barnett formula is a simple and efficient way of allocating finance and has stood the test of time. As the noble Lord says, it delivers a very good deal for Wales; the higher per-person funding broadly reflects the higher cost of delivering public services in Scotland, Wales and Northern Ireland compared with England.

Baroness Humphreys Portrait Baroness Humphreys (LD)
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My Lords, the Barnett formula has been in existence since the 1970s, when it was introduced as a temporary measure, and has since been discredited, even by Lord Barnett himself. Does the Minister agree that the formula needs to be reformed and replaced by a new, needs-based formula that meets the new and changing demands on the devolved nations in the 21st century?

Lord Livermore Portrait Lord Livermore (Lab)
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No, I do not think I agree, and I am not sure that the formula that the noble Baroness sets out would deliver a better deal for Wales or any of the devolved Administrations. The Barnett formula has been revised recently and now includes a needs-based factor to ensure fair funding for Wales in the long term. The recent Budget delivered a very good deal for Wales: the Welsh Government settlement for 2025-26 is, as I have said, the largest in real terms of any Welsh Government settlement since devolution.