I very much welcome the acknowledgement of the need for fair Welsh funding by the Chief Secretary to the Treasury, David Laws today, after I raised the issue in a question in the House of Commons.
I raised the issue after Shadow Chancellor Alistair Darling asked an urgent question about the £6.25 billion cuts announced this week by the Coalition Government.
In doing so I highlighted the statement made by Peter Hain in November last year about providing compensatory payments to the Welsh Budget where convergence had taken place, however a Parliamentary Answer by the Treasury confirmed that while convergence would be assessed in the next Spending Review it was not ‘currently expected’.
Holtham made it clear that Wales is losing out and the Government has set out their plans to look at the funding settlement, but there are real problems faced in Wales as a result of underfunding.
I was pleased that David Laws acknowledged the difficulties we face and I look forward to working with him to ensure that we get the best possible deal for Wales.
The Treasury made it clear in answers before the election that they didn’t believe they would ever have to implement Peter Hain’s so-called ‘funding floor’ so there is a need to continue to concentrate on the issue of Welsh funding.
We have been promised a Treasury Review of Welsh funding by the Coalition Government, which is welcome, but I hope that the Government will make sure that any cuts are fairly distributed, and the Minister’s response was encouraging in that regard.
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scotland got concrete action and more cash, wales got hot air, flannel and cuts. To think I voted for Ed Townsend!
Wales got a promise of no tax on the first £10,000 of earnings, the right to sack corrupt MPs, the restoration of the pension link, action to tackle climate change and the Barnett consequential of real terms increases in NHS spending and extra money for the pupil premium. They also got a referendum on more powers and the promise of an official Treasury review of Barnett that goes further than Holtham and could give us tax varying powers too. Under Labour we go inaction on most of these, a basket-case economy and an increase in child poverty.