Devolved Authorities: Use of Resources

Lord Forsyth of Drumlean Excerpts

Wednesday 23rd April 2025 Lords Chamber

[Lord Wilson of Sedgefield (Lab)]

Because of the Barnett formula, Wales receives 15% more than the average for the rest of the UK. We also need to point out some of the advantages of the Welsh and UK Governments working together. Under the AI opportunities action plan, Vantage Data Centers, which is working to build one of Europe’s largest data centre campuses in Wales, announced plans to invest £12 billion, providing 11,000 jobs across Wales. There are also expected benefits in direct payments for 150,000 workers in Wales through the minimum wage rise. There are 2.1 million people in Wales who will benefit from the extension of the 5p cut in fuel duty.

[Lord Forsyth of Drumlean (Con)]

My Lords, will the noble Lord—I appreciate he is new to his post—take time to read the Select Committee of this House’s report on the Barnett formula? From that he will find that Wales is indeed badly treated, and no Government have actually done anything about it. On the main point of the Question, which is the right of devolved Administrations to spend the money that is allocated to them under the formula as they choose, that is an important part of devolution, which the noble Lord was very keen on. Had it not been for that, the Scottish Government would not have been able to waste tens of millions of pounds on ferries that do not work—money which would otherwise have been spent on the health service.

[Lord Wilson of Sedgefield (Lab)]

The Barnett formula does succeed in delivering for our nations around the country. It is fair to say also that the settlement this year is the largest that has been delivered since devolution.