Scotland: Block Grant

Lord Stephen Excerpts

Monday 15th June 2015 Lords Chamber

[Lord Dunlop]

My Lords, we are very mindful of the funding needs of Wales. Obviously, Welsh funding was the subject of the Holtham review and, according to the criteria set out by Holtham, Wales is not currently underfunded. For the foreseeable future, per-head funding is unlikely to converge with that of England in the near term. The UK Government have committed to introduce a funding for Wales that will ensure fair funding for Wales.

[Lord Stephen (LD)]

My Lords, is there not now a clear opportunity to create a new cross-party consensus for a constitutional convention to look at the whole of the United Kingdom on these issues? We have seen concern from Wales, and today the SNP lodged amendments that back away from full fiscal responsibility and simply want to give power to the Scottish Parliament to implement it at some point in the future. Doubtless, that is due to the fact that it involves the scrapping of the Barnett formula and £7 billion per year of cuts to public services in Scotland or increased taxes in Scotland. Is it not now time, building on the Smith commission and reflecting the outcome of the election in Scotland, for there to be at least an attempt at a cross-party consensus that would involve the nationalist parties to try to work together for a fairer settlement for the whole of the United Kingdom?

[Lord Dunlop]

My Lords, the Smith agreement was, of course, an all-party consensus. We have an extensive package of constitutional reform for all parts of the United Kingdom and our priority is to deliver on the constitutional commitments that we have made. We want a balanced and fair settlement across the United Kingdom. I am sure that there will be a lively debate on what more can be done, which the Government welcome wholeheartedly.