Freedom Central » finance

Welsh Liberal Democrats submit proposals to Silk Commission

Freedom Central — Sat, 04 Feb 2012 06:00:05 +0000

The Welsh Liberal Democrats have revealed proposals to reform the funding of the National Assembly to promote “accountability, fairness and growth.” The Party today provided their suggestions in a weighty submission to the Silk Commission.

Kirsty Williams, Leader of the Welsh Liberal Democrats said, “Our vision for devolution has always included making sure that the National Assembly has the appropriate range of powers available to improve the lives of the people of Wales.

“The Welsh Liberal Democrats campaigned hard for a Yes vote in the referendum in March because we believed Wales would benefit from a broad range of legal powers. Today we have submitted a plan for a range of financial powers so that the Welsh Government – of whatever party or parties – and the Assembly as a whole can be further held accountable for the decisions they make, and be further challenged to make the economy grow so that the potential tax base is in turn increased”.

These proposals include:

• Reform of the Barnett formula, which is used to calculate the amount of money coming to Wales from the UK Government, on the basis of need, so that public services are properly funded
• Powers to enable the National Assembly to collect half of Welsh income tax and vary it by at least 3p, so that economic growth can be rewarded
• To have complete control over taxes that affect the Assembly’s responsibility, such as stamp duty so that housing can be made more affordable. Also for Assembly control of industry-specific taxes so that Wales can create jobs
• Borrowing powers so that the Welsh government is able to invest in the infrastructure Wales needs for the future

Kirsty added, “We have always advocated reform of the Barnett formula, as being essential to any financial reforms. The Welsh Liberal Democrats want to see this as a precursor to any devolution of taxes. Wales has missed out on funding for over a decade because of this unfair system.

“But our submission takes a much wider view of the way the National Assembly should be funded. Powers over taxes makes the Welsh government more accountable to the people of Wales and encourages the Welsh government to pursue better polices for growth. Borrowing powers will give the Welsh government more scope to stimulate the economy.

“Welsh Liberal Democrats have been arguing for greater devolution for over a century. This is the latest step in our long campaign for a federal UK. It will strengthen Wales and help make a real difference to the lives of people across the country.”

UK Coalition settles Labour’s Olympic funding dispute

Newswire — Fri, 23 Dec 2011 06:25:35 +0000

A statement put out yesterday by the Welsh Finance Minister indicates that the UK Coalition has finally settled a dispute over the funding of the 2012 Olympics that arose when the Labour-run Treasury in 2007 denied the devolved administrations a Barnett consequential from the £7 billion of public money commited to delivering the games. This was despite the fact that a substantial proportion of this spending was to be used to fund regeneration and transport infrastructure in the east London area.

As the Minister says, the Welsh Government disputed this decision from the outset. Discussions reached the point in 2010 where the matter was recorded formally as an inter-governmental dispute and this led to the final agreement.

The key point is an agreement that decisions on the application of the Barnett formula should “always be evidence based, be undertaken in a timely manner and in consultation with the devolved administrations”. This wording is now included in HM Treasury’s Statement of Funding Policy which was published alongside the UK Spending Review in autumn 2010.

The bottom line though is that the Welsh Government, the Scottish Government and the Northern Ireland Executive will receive a one-off sum equivalent to the Barnett consequentials of relevant changes to Olympics funding since the present UK Government took office in May 2010.

These sums amount to £30.2m, of which the Welsh Government will receive £8.9m, the Scottish Government £16m and the Northern Ireland Executive £5.4m (rounded to the nearest £100,000). This money will be added to the budgets of the devolved administrations so as to be available for spending in 2011-12.

Welsh Liberal Democrats deliver on key manifesto policy

Kirsty Williams — Thu, 08 Dec 2011 05:07:51 +0000

Earlier this week the Welsh Liberal Democrats helped to vote through the Welsh Labour Government’s 2012-2013 Budget on the basis of securing £32.04 million, of which £20 million is new money, for a Welsh pupil premium to reduce the impact of poverty on educational attainment.

In addition, the Welsh Liberal Democrats were able to agree an Economic Stimulus Package of £38.9 million to be spent on a range of measures to stimulate the economy and protect jobs.

The Welsh Liberal Democrats are proud to be backing a budget that delivers on the key Pupil Premium policy that we took to the people of Wales in May.

When money is tight, you have to be clear about your priories. Our priority before the election was to make sure that the most disadvantaged children in this country get the help they need. We are supporting a budget that will make progress towards closing the education funding gap with England – starting with the poorest children. We are also backing a budget that tackles unemployment gives a welcome boost to the economy.

Our approach in Wales has been entirely consistent with the Liberal Democrats in London: working to find agreement with out political opponents in order to put Liberal Democrat policies into practice. Liberal Democrats have persuaded the Conservatives in England of the importance of extra funding for the most deprived children in England. We are pleased that we have now persuaded the Labour party of the same here in Wales.

We must begin to break the link between poverty and attainment that has dogged our education system for so long. This week we have made great steps towards doing that.

Welsh Lib Dems will continue to call for infrastructure projects to boost economy

Kirsty Williams — Tue, 29 Nov 2011 13:22:52 +0000

As the Welsh Government’s budget is today laid before voting next week, Welsh Liberal Democrats will continue to push for programmes that will boost the Welsh economy while improving the standard of life for people across Wales.

In the budget deal agreed with the Welsh Labour Government, we were able to persuade the Government to adopt the pupil premium scheme that sees money being targeted at the poorest children in our society to improve their educational attainment.

Money has also been allocated to projects across Wales that will be spent on a range of measures to stimulate the economy, protect and promote jobs and improve the standard of life for many people across Wales. These projects include increasing the number of apprenticeships, improving home energy performance to building new affordable housing across Wales.

The Welsh Liberal Democrats will today be watching the Chancellor’s autumn statement to see whether Wales will receive more money from Westminster. The budget agreement stated that any further consequential resulting from the Chancellor’s autumn Statement will also be subject to discussion between the two party leaders in order to reach agreement on how it can be used, in particular to stimulate the economy and create employment opportunities.

I am extremely proud that we have been able fulfil a manifesto commitment, when we’re not even in government, and ensure more money for children from poorer families. The link between poverty and poor educational attainment is clearly evident and that link must be broken.

Investment in our education system is the best way to break the cycle of poverty, poor health and a weak economy. We have ensured that education is treated with the respect and priority it deserves during the budget negotiations.

The pupil premium will begin to break the link, school by school, community by community, between poverty and attainment that has dogged our education system for so long.

Not only have we been able to agree with the Welsh Government how to spend the £38.9 million council tax consequential, from increasing the number of apprenticeships, improving home energy performance to building new affordable housing across Wales, we will be able to exert our influence on how any further consequential, resulting from the Chancellor’s autumn Statement, will be spent.

The approach we took with the Welsh Labour Government over spending projects was to invest money on economic and social infrastructure schemes, including classroom repairs, affordable housing, energy-saving programmes and regeneration projects. We will continue with this approach if further funding will be made available.

A good deal for Welsh Children

Kirsty Williams — Sun, 27 Nov 2011 06:01:34 +0000

On Friday I announced that the Welsh Liberal Democrats will be voting with the Welsh Labour government for the budget on the 6th December.

We have agreed to support the 2012-2013 budget on the basis that we will be introducing a Welsh Pupil Premium. This means that from April 2012, every child in Wales on free schools meals will recieve an extra £450 of funding – no matter where they live, or what school they go to. This is a total Pupil Premium spending of £32 million, of which £20 million is brand new money for the education budget.

Some may see this as an attempt to distance ourselves from the Liberal Democrats in Westminster, due to the coalition. In fact our approach in Wales has been consistent with the Liberal Democrats at a UK level working to find political agreement with our political opponents in order to put Liberal Democrats values and policies into practice.
Nick Clegg has persuaded the Tories in England of the importance of extra funding for our most deprived children. In Wales, I am pleased that we have now persuaded Labour of the same. In both cases we have done exactly what we said we would do before the election.

So this isn’t a matter of political branding, it’s a case of the Welsh Liberal Democrats getting the very best deal we can for the people of Wales. That is what is at stake here.

Agreeing to vote for the Labour government’s budget doesn’t make us a party of the left. Much like going into coalition with the Conservatives in Westminster doesn’t make us a party of the right. Our priority is to advance the policies that we fought the election on.

Welsh Liberal Democrats were not elected to the Assembly to turn our backs on the desperate need to improve education funding in Wales or to reject the need to re-boot the Welsh economy and provide training and hope for those without work.
It would have been easier politically to walk away, but the Welsh Liberal Democrats have instead worked with our political opponents to agree a budget for the good of Wales. We are proud that our influence will make a difference to children in Wales and a welcome boost to the economic recovery.

We may have a small group in the National Assembly, but our influence in these budget negotiations will have a big impact on children’s lives. Thanks to the Welsh Liberal Democrats, we are making huge steps in starting to break the link, school by school, community by community, between poverty and attainment that has dogged our education system for so long.

But let me be clear, this is purely an agreement about the budget for next year. With Labour lacking the ‘comfortable majority’ they predicted before the election, the Welsh Liberal Democrats have had the opportunity to influence the direction of our country. I am proud we have done this in such a positive way.

Pupil premium and economic stimulus central to Welsh Government budget deal

Kirsty Williams — Fri, 25 Nov 2011 17:23:42 +0000

I have announced today that the Welsh Liberal Democrats in the National Assembly will be voting for the Welsh Government budget on the 6th of December.

The Welsh Liberal Democrats have agreed to support the Welsh Labour Government’s 2012-2013 Budget on the basis of securing £32.04 million, of which £20 million is new money, for a Welsh pupil premium to reduce the impact of poverty on educational attainment.

In addition, the Welsh Liberal Democrats have been able to agree an Economic Stimulus Package of £38.9 million to be spent on a range of measures to stimulate the economy and protect jobs.

During my speech to Liberal Democrat Conference in Birmingham in September, I said:

“The Welsh Liberal Democrats will not back any budget that does not make progress towards closing the funding gap with England – starting with the poorest children who need the extra help the most.

“Nor will we vote for a budget that neglects the need to tackle unemployment and boost the economy by incentivising employers that take on new trainees.

“Those were our priorities during the election. And they will be our priorities at the next budget.”

When money is tight, you have to be really clear about what your priorities are. Our priority as Welsh Liberal Democrats has always been to make sure that the most disadvantaged children in this country get the help they need.

The pupil premium will begin to break the link, school by school, community by community, between poverty and attainment that has dogged our education system for so long.

We have also agreed an Economic Stimulus Package that will help boost the economy and protect jobs in these very difficult times. Businesses and families are struggling and we are doing all we can to ensure that this budget gets people back into work.

The Welsh Liberal Democrats are a small group in the National Assembly, but our influence in the budget negotiations will have a big influence on children’s lives and will help give our economy a helping boost.

It would have been easier politically to walk away, but the Welsh Liberal Democrats have instead worked with our political opponents to agree a budget for the good of Wales. We are proud that our influence will make a difference to children in Wales and provide a welcome boost to the economic recovery.

No progress on Welsh budget

Newswire — Sat, 19 Nov 2011 16:58:30 +0000

The Western Mail report that despite the imminent deadline of 29 November by which the Welsh Government need to table their final budget, little progress has been made with in negotiating concessions with the opposition parties.

They say that senior sources from both parties say that talks so far have been slow, insubstantial and that the Labour Government had yet to discuss anything beyond a bonus £38.9m heading to Wales as a result of the UK Government freezing council tax in England:

A senior Lib Dem source, while describing the Welsh Government as “engaging positively” and being “cordial and all the rest of it”, also voiced concern about the pace of the talks.

“In terms of the real budget, as opposed to the £38m bonus which comes from the council tax, we haven’t seen anything,” they said.

“Perhaps they had the view that they really weren’t going to get anywhere until the draft budget was announced. We’ll see next week.

“There’ll come a point when the deadline will be approaching. If we haven’t seen anything serious… for now we are carrying on in good faith.”

The source also clarified comments made by Kirsty Williams earlier this week over her specific demands in the Budget.

The Lib Dems have called for more money to be put into Leighton Andrews’ education department, with the introduction of a so-called “pupil premium”, designed to tackle variations in attainment between pupils from different backgrounds and introduced in England.

In a press briefing last week Ms Williams appeared to suggest that could be paid for by moving money within the education budget, rather than adding to it, but the source said that would be “as part of a package”.

“What we want to achieve is narrowing the funding gap and getting extra money for the neediest kids. It’s hard to do that without any new money at all,” they said.

The source also added that there was a belief among the Lib Dem team that the Government could do a deal with Plaid without too much difficulty by reintroducing some of the economic policies forged under the coalition One Wales Government.

Labour’s spending plans not fit for Wales

Kirsty Williams — Tue, 15 Nov 2011 14:03:09 +0000

I can confirm that the Welsh Liberal Democrats will not vote for the Welsh Government’s draft budget this afternoon as it does not go far enough to address the problems that Wales faces.

We will be supporting the opposition amendment to the draft budget that better reflects the spending priorities needed in Wales.

We don’t believe that this budget goes far enough to address the problems we face in Wales.

This budget fails to address the shocking scandal that as the schools performance gap between Wales, Scotland, England and Northern Ireland continues to grow, Labour still spends £600 less on each pupil each year compared to those living in England.

We have already said that we will not support a budget that does not make progress towards closing the funding gap with England – starting with the poorest children who need the extra help the most.

This draft Welsh Government budgets also neglects the need to tackle unemployment and boost the economy by incentivising employers that take on new trainees. Additional resources towards re-booting the Welsh economy and providing training for those without work must be included in a budget that the Welsh Liberal Democrats can support.

We want a budget that serves the people of Wales and that is why we have come together with the other two opposition parties to form a spending plan that will address the challenges we face.

However, we will continue to talk to all parties concerned so that we can deliver what is in the best interest of Wales.

Opposition parties unite to oppose draft budget

Freedom Central — Thu, 10 Nov 2011 22:10:20 +0000

The three opposition parties in the National Assembly for Wales, the Welsh Liberal Democrats, Plaid Cymru and the Conservatives have agreed to table a joint amendment opposing the Labour Government’s draft budget. It reads:

The National Assembly for Wales…

Declines to support the draft budget of the Welsh Government for 2012-13, laid in the Table Office on 4 October 2011 by the Minister for Finance, on the grounds that it does not adequately address:

a) The financial pressures faced by the National Health Service;
b) The worsening economic crisis;
c) The financial pressures faced by schools to meet the needs of disadvantaged children; and
d) The financial pressures on capital projects.

Peter Black, Welsh Liberal Democrat Finance Spokesperson said:

“We have agreed to table a joint amendment to Labour’s draft budget because we don’t feel that this is the right budget for Wales.

“Labour’s priorities are all out of synch with the needs of the people of Wales and this budget will do nothing for our economy, our schools and our NHS. Their plan to deal with the current and deepening economic crisis is lightweight and does little to inspire confidence in our business sector.

“We want a budget that will work for the people of Wales and the Welsh Liberal Democrats will continue to talk and listen to other parties so that we can deliver what is in the best interest of Wales.”

The Silk Commission can bring more accountability and responsibility to the Welsh Government

Kirsty Williams — Tue, 11 Oct 2011 12:04:37 +0000

Liberal Democrats have consistently supported greater financial powers and it is a credit to the Coalition Government that this announcement has been made after over a decade of Labour inaction.

Wales’ devolution package is missing a critical element. Unlike most families and businesses, the Welsh government has the luxury of spending money handed out by others. Uniquely, Wales has no power to borrow or raise money. This lack of accountability for how money is raised breeds and irresponsibility about how money is spent.

The process announced today cannot be about Wales whingeing for others to deliver. It is about building a persuasive case with maximum support across Wales that demands the respect of politicians in Westminster.

The Welsh Liberal Democrats will engage fully and constructively in this process. At every stage we will be pressing to bring more accountability and responsibility to the Welsh Government and to give Wales further powers to drive forward Wales’ economic development, creating jobs and prosperity for people in Wales.