Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of (a) raising the annual capital borrowing cap for the Welsh Government and (b) introducing a mechanism where it rises with inflation.

We remain committed to working in partnership with the Welsh Government to ensure the Fiscal Framework continues to deliver value for money while upholding our shared commitment to fiscal responsibility. Discussions regarding the Welsh Government’s request to amend the budget management tools outlined in the Framework are ongoing.

As set out in the Welsh Government Fiscal Framework agreed in 2016, a full review is triggered if the Welsh Government’s relative funding falls below 115% of equivalent UK Government spending per head in the rest of the UK.