Barnett Floor (Wales)
Debate between Nick Thomas-Symonds and Gerald Jones(9 years, 1 month ago)
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Nick Thomas-Symonds
My hon. Friend makes a powerful point. Record investment in public services in Wales was made under the Labour Government. Indeed, the Conservatives were so impressed that in September 2007 the then shadow Chancellor of the Exchequer—now Chancellor—adopted our spending plans for the next couple of years. That is how impressed they were, although these days they seem to be taking a different view of that record investment.
The Barnett floor works by multiplying positive funding increments to Wales not only by the comparability factor and population share, but by a further percentage increment. The qualifier is that the formula is not intended to work in reverse, with negative funding increments, because that would simply widen the underfunding gap.
In October 2010, the National Assembly for Wales unanimously endorsed a motion for the implementation of a funding floor, to be followed by wider funding reform. Nevertheless, the coalition Government of 2010 to 2015 did not deliver.
Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)
Does my hon. Friend agree that the Government should be acting with greater urgency on implementing the funding floor, given the Holtham commission statement that Wales could be underfunded by between £5.3 billion and £8.5 billion over the 10 years to 2020? Does he also agree that the Government’s lack of action on the matter suggests a lack of interest in achieving a funding floor and fairer funding for Wales?
Nick Thomas-Symonds
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.