Barnett Floor (Wales) Debate

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Department: Wales Office
Tuesday 10th November 2015

(8 years, 7 months ago)

Westminster Hall
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Nick Thomas-Symonds Portrait Nick Thomas-Symonds
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I agree entirely. The matter is urgent, but we are concerned about the Government’s lack of interest. The coalition’s programme for government in the previous Parliament stated that the priority was to reduce the deficit and that changes to the system could await stabilisation of the public finances, although why exactly the coalition Government were incapable of paying sufficient attention to Wales to deal with the issue—or even to start dealing with it—remains entirely unclear.

Liz Saville Roberts Portrait Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
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Given that the Barnett formula has been in question since 1978, why did the hon. Gentleman’s party not rectify the Welsh funding shortfall while it was in government?

Nick Thomas-Symonds Portrait Nick Thomas-Symonds
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I repeat to the hon. Lady a point made powerfully by my hon. Friend the Member for Ogmore (Huw Irranca-Davies): in 1997 to 2010, we had what he called “Barnett-plus”, which was record investment in public services in Wales, to the benefit of both my constituents and hers.

--- Later in debate ---
Alun Cairns Portrait Alun Cairns
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I will come to that point in a moment, but it is worth remembering that the Command Paper, which was agreed by all parties, was published earlier this year and that committed specifically to acting within the next spending review period. As I said, the Barnett floor and spending commitments for Wales will be published alongside that.

The £300 million spoken about compared with a budget of roughly £15 billion. It is also worth noting that when Holtham reported, there was total identifiable spending in Wales of approximately £29 billion.

A lot has changed since 2010, both financially and politically. A joint statement in 2012 by both Governments recognised the resonance of this issue in Wales. In particular, it recognised the Welsh Government’s concerns that their funding would converge further towards English levels. However, joint work with the Welsh Government at the previous spending review confirmed that funding is not forecast to converge during the period to 2015-16. That refutes the points made by several Opposition Members; that was joint work agreed with the Welsh Government. Furthermore, Holtham’s logic also illustrated that the relative level of funding per head had risen, or diverged to use the technical term, and it is now in the range that the commission regarded as fair.

Liz Saville Roberts Portrait Liz Saville Roberts
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None the less, the Minister cannot ignore the 78% of 10,000 people responding to a YouGov poll who said that Wales should be funded to the equivalent level of Scotland, which would bring in an extra £1.2 billion.

Alun Cairns Portrait Alun Cairns
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I am grateful to the hon. Lady, but Scotland’s devolution settlement, and therefore its financial settlement, is naturally different. However, I pay tribute to her for her earlier point, when she asked why Labour did not act in its 13 years in government, when there was a greater divergence between the relative funding in Wales and England, and Wales was getting worse off.