Wales: Council Tax

Baroness Randerson Excerpts

Thursday 27th October 2011 Lords Chamber

[Lord Wallace of Tankerness]

My Lords, I indicate to the noble Lord that the Government are not being prescriptive. They recognise that the consequentials that were made available are for the Welsh Government and the Welsh Assembly to determine. While additional powers are being conferred on the Scottish Parliament as a result of the Scotland Bill, the noble Lord will be aware that there has been recent agreement to set up the Silk Commission, which will look initially at the financial accountability of the Assembly and, having reported on that, move to looking at its powers.

[Baroness Randerson]

My Lords, does the Minister agree that, as the years go on, the strains imposed by the Barnett formula are beginning to show in the Welsh financial settlement? As a result, for example, education in Wales receives £600 less funding per pupil per year than in England. Would that not be a good way in which the money concerned could be spent?

[Lord Wallace of Tankerness]

My Lords, I am sure that the Welsh Government are getting plenty of helpful suggestions as to how that money might be spent. I sat in on the debate on the Barnett formula initiated earlier in the year by the noble Lord, Lord Barnett, and listened carefully to it. The Government have made it clear that their priority is to reduce the deficit and get our public finances in order. Therefore, any change to the system of devolution funding must await stabilisation of public finances. However, as I have already indicated, separate bilateral discussions are continuing between the Government and the Welsh Government on the proposals arising from the Holtham Commission.