Devolved Public Services: Funding

Lord Thomas of Cwmgiedd Excerpts

Monday 1st June 2026 Lords Chamber

[Lord Katz (Lab)]

I say to the noble Lord that just because something has been in existence for a long time does not mean that one necessarily has to think about reforming it as a matter of course. I inform the noble Lord, though, that the fiscal framework that has already been agreed between the UK and the Welsh Government added a needs-based factor into the Barnett formula to ensure that Wales receives fairer funding. As a result, the Welsh Government are receiving over 20% more per person than equivalent UK Government spending across the rest of the UK. The Institute for Fiscal Studies, no less, suggests that moving towards a different system, such as a needs-based system, could see the Welsh Government losing out on funding.

[Lord Thomas of Cwmgiedd (CB)]

Will the Minister be able to outline the steps that are being taken by the Government to review the intergovernmental structures for co-operation between Cardiff, Westminster, Edinburgh and Belfast, and to ensure that these are strengthened over the next few months?