Barnett Formula

Lord Wigley Excerpts

Thursday 13th July 2017 Lords Chamber

Asked by

[Lord Wigley]

To ask Her Majesty’s Government what changes they propose to make to the application of the Barnett formula to Wales and Scotland arising from any potential additional financial provision for Northern Ireland.

[The Minister of State, Department for International Development (Lord Bates) (Con)]

My Lords, the Government remain committed to the Barnett formula, which is designed to ensure that devolved Administrations are funded to deliver their priorities within their devolved responsibilities. Like those previous interventions, this exceptional funding will be made outside the normal ongoing Barnett funding system. It will therefore not attract Barnett consequentials.

[Lord Wigley (PC)]

Surprise, surprise. The noble Lord will be aware that £1,000 million has been allocated primarily to hospitals, schools and roads in Northern Ireland—mainstream Barnett elements. Clearly the Government have perceived an extra need in Northern Ireland, however that is defined. Will they therefore move towards a needs-based formula for Scotland, Wales and indeed, for the regions of England, to ensure that valuable and important economic projects, such as the M4 in south Wales, the A55 in north Wales and the Swansea Bay lagoon—things that are important to the economy—can move ahead and are not constrained by the way in which these matters are approached at present?

[Lord Bates]

The noble Lord will be familiar with the long-running debate over the needs-based versus the population-based formula. The Government always remain responsive to needs. That is one reason why a number of investments have taken place in Wales, for example, outside the Barnett formula. There is the Cardiff capital region city deal of £500 million, the Swansea city deal of £115 million, and I hope the north Wales growth deal. All those will be outside the Barnett formula and reflect the particular needs of Wales, as the deal to which he referred reflects the particular needs of Northern Ireland.