Fiscal Rules

Baroness Smith of Llanfaes Excerpts

Tuesday 29th October 2024 Lords Chamber

[Lord Livermore (Lab)]

I am grateful to the noble Lord for giving me an opportunity to talk about the £22 billion black hole left to us by the previous Government. He has done that in the past and I continue to be grateful to him. The independent Office for Budget Responsibility said at the time of the July statement that it did not know about this black hole at the heart of our finances; it established an independent review into it which will report in due course. I think there will be plenty more information on the £22 billion black hole in tomorrow’s Budget for the noble Lord to peruse.

[Baroness Smith of Llanfaes (PC)]

My Lords, changes to the fiscal rules are welcome, as our devolved Governments need a new fiscal settlement. The Barnett formula has no legal standing, and the convention can be changed by the Treasury. Are there any plans on the horizon to replace the Barnett formula? If so, would this be a needs-based formula to ensure that wealth is redistributed fairly?

[Lord Livermore (Lab)]

I am not aware that the Government have any such plans, but I hope that tomorrow’s Budget will include good news for Wales.