Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions she has had with the Welsh Government on the potential merits of providing support for the delivery of social homes in Wales through (a) increased capital funding and (b) expanded borrowing powers.

We remain committed to working in partnership with the Welsh Government to ensure the Fiscal Framework, which sets out their borrowing arrangements, 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.

The Welsh Government is currently receiving at least 20% more per person than equivalent UK Government spending in the rest of the UK. That translates into over £8.5 billion more in 2025-26.

It is for the Welsh Government to allocate its funding in devolved areas, including social housing, as it sees fit. It can therefore take its own decisions on managing and investing available resources, reflecting its own priorities and local circumstances, and it is accountable to the Senedd for these decisions.