First Minister hails progress on more fiscal powers for Wales following Burnham talks

Mark Mansfield

Rhun ap Iorwerth has welcomed progress towards greater financial powers for Wales following talks with Prime Minister Andy Burnham, while insisting that decisions about devolving power within Wales belong solely to the Senedd.

The First Minister said there was agreement on the urgent need to revise Wales’ fiscal and borrowing powers, which he argued had long left it disadvantaged compared with other UK nations.

However, his statement did not specify which powers would change or a timetable for reform.

The two leaders met in Glasgow on Friday alongside the first National Economic Council for the nations.

“There was an encouraging consensus that the fiscal and borrowing powers which have for so long put Wales at a disadvantage compared with other UK nations must be revised as a matter of urgency,” Mr ap Iorwerth said.

“I welcome the Prime Minister’s comments that this is now a matter of how and when.”

Ahead of the meeting, the First Minister had called for a new Wales Bill to give Wales parity of powers with Scotland, alongside a fairer funding settlement and a Growth Partnership between the two governments.

He had also identified the devolution of justice and policing as a priority, describing the case as “particularly compelling and urgent”.

His account of Friday’s discussions focused on financial powers, rail funding, the proposed Cynnal child payment and relations with Europe.

Rail funding

Mr ap Iorwerth said he had secured a personal commitment from Mr Burnham to examine the UK Government’s £14 billion rail investment pledge.

The discussions followed criticism of this week’s Budget, which announced £30 million for Cardiff Parkway station against the £1 billion Welsh Ministers had sought towards the wider commitment.

Deputy Minister for Transport Mark Hooper branded that allocation “an insult”, arguing that delays to investment were holding back improvements for passengers and the Welsh economy.

“On rail funding, I was pleased to hear the Prime Minister’s personal commitment to look at the £14bn pledge,” Mr ap Iorwerth said after the meeting.

He also pressed for urgent Treasury action to enable the Cynnal weekly child payment pilot to proceed.

The Welsh Government wants to introduce the payment to support the poorest families without a tax detriment. Before travelling to Glasgow, Mr ap Iorwerth said discussions were progressing and that he expected a tangible commitment.

Friday’s statement confirmed that he had raised the issue but did not announce an agreement.

Powers within Wales

The meeting followed the First Minister’s warning that the UK Government should not bypass the Senedd or treat Wales as a region of England.

Afterwards, he said: “I also reiterated the point that further devolution within Wales is a matter for the Senedd and only the Senedd.”

Mr Burnham, whose agenda includes transferring more powers to regional bodies, said Wales and Scotland should determine their own arrangements.

“It’s about creating those structures at a regional level and that’s a matter for Scotland and Wales to decide what that looks like in both countries,” he said.

“It’s not for me to impose or try to interfere there.”

Asked whether he had offered additional powers to the devolved administrations, the Prime Minister highlighted discussions about innovation funding for reindustrialisation and employment support.

He said the UK Government would examine “arrangements for further devolution of employment support, particularly for young people in both Scotland and Wales”.

There were too many young people out of work across Wales, Scotland and England, he said.

Mr Burnham also argued that the four nations needed to make progress together.

“It’s really important that we all move at the same pace together, and I won’t allow anything to delay that,” he said.

“Growth can’t wait. People need to see improvements in employment and in living standards in all parts of the UK.”

The Prime Minister has promised to “rewire the state” and give regional mayors and authorities in England more control. He has, however, ruled out independence referendums sought by the Plaid Cymru and SNP leaders.

Mr ap Iorwerth also used the Glasgow talks to press for closer European ties.

“On Europe, I offered the Prime Minister my full support in pushing for a stronger relationship with the EU, urging him to go further and pursue rejoining the single market and customs union as a priority,” he said.