Tuesday, July 03, 2007
Reviewing Barnett
Betsan Powys helpfully links to a piece in Scotland on Sunday that has been little reported in Wales, if at all. The paper reports that Gordon Brown is about to ditch the Barnett formula, which determines how much money Scotland, Wales and Northern Ireland get to spend.
Treasury attempts to find an efficient solution to the problem of ensuring the neediest areas in the UK got the money they deserve means that the whole funding settlement must be reviewed and possibly redrawn.
We have already made our case in Wales for money to be allocated according to economic need, rather than the relative populations of the four nations of the UK and are in the process of setting up our own independent commission as a result of a Welsh Liberal Democrat motion a few weeks ago. At the time it was considered by many that this commission would be banging on a firmly locked door but now it is likely to be crucial in ensuring that Wales' position is protected in any review.
The evidence that the Commission gathers and the conclusions it reaches about Wales' relative need and what resource is required to fund essential services could give us a head start in negotiations. A coherent alternative, which includes mechanisms for reviewing and updating any new formula is vital if Wales is to punch its weight in talks with the Treasury.
Treasury attempts to find an efficient solution to the problem of ensuring the neediest areas in the UK got the money they deserve means that the whole funding settlement must be reviewed and possibly redrawn.
We have already made our case in Wales for money to be allocated according to economic need, rather than the relative populations of the four nations of the UK and are in the process of setting up our own independent commission as a result of a Welsh Liberal Democrat motion a few weeks ago. At the time it was considered by many that this commission would be banging on a firmly locked door but now it is likely to be crucial in ensuring that Wales' position is protected in any review.
The evidence that the Commission gathers and the conclusions it reaches about Wales' relative need and what resource is required to fund essential services could give us a head start in negotiations. A coherent alternative, which includes mechanisms for reviewing and updating any new formula is vital if Wales is to punch its weight in talks with the Treasury.
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The story was first run in the Sunday Herald about four weeks ago. There is an argument that Brown will implement a review in order to show to English voters that he really is the PM of the whole of the UK. Of course the problem with reviews is how long they take and there is no quarantee that any recommendations will be implemented. I doubt that we will see any change until after the next UK election.The last thing Labour wants is an election fought north of the border on the issue of Scotland's money and the effect of any cuts on public services.
# posted by 
: 1:32 PM
: 1:32 PM
Isn't it strange that other newspapers haven't followed up this story? Could it be because we shouldn't believe everything we read in the Sunday papers? Is Gordon Brown really going to give even more money to Wales, where public spending per head is higher than in England, at the expense of the English?
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# posted by : 2:22 PM
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