Plaid Cymru forces debate on fair funding for Wales

Emily Price 

Plaid Cymru have tabled a motion in the Senedd today which if passed would force the Welsh Government to make representations to the UK Government to replace the Barnett Formula with a fairer funding settlement for Wales.

Plaid Cymru have argued that Wales is currently funded unfairly because of the method used to calculate additional funding for devolved administrations.

This is because the Barnett formula is distributed according to population share, rather than by need.

Plaid says this means that Wales loses out on millions, and in some instances, billions of pounds in funding from the Treasury.

‘Together’

Wednesday’s (June 25) debate comes after the Chancellor’s Spending Review which gave Wales £445 million for rail alongside money for infrastructure at Port Talbot and to secure coal tips in the South Wales Valleys.

First Minister Eluned Morgan welcomed the cash uplift saying the spending review “showed what can be achieved when governments work together”.

The new rail funding comes following criticism over the designation of a multi-billion pound rail link between two English universities which was reclassified as an England and Wales project.

Similarly, there has been an ongoing row over the high speed rail project HS2 which was classed as an England-and-Wales project by the previous Conservative government.

The England and Wales label means that both rail projects are considered to benefit both nations – so the Welsh government does not get extra cash from them.

Promise

Plaid Cymru has argued that recent the £445 million for Welsh railways from the Chancellor is less than what Wales is owed – especially when compared with the £15.8 billion which was allocated for local and regional transport across England.

During the debate this afternoon, Plaid MS Heledd Fychan will also raise the fact that the Welsh public sector has not been fully reimbursed for Labour’s National Insurance contributions hike, whilst English public sector institutions have been reimbursed in full.

Plaid says will Labour’s general election promise of a “partnership in power” has been broken and that as the party is now working against the interests of the people of Wales.

‘Unfair’

Finance spokesperson, Heledd Fychan, said: “A funding formula from the 1970s has no place in Wales’ modern democracy.

“The continual underfunding of Wales should have been consigned to the history books long ago, but Labour’s continued inaction on this matter is letting Wales down.

“Whether it’s consequential funding from rail projects in England which means Wales loses out on billions, whether it’s the insufficient National Insurance reimbursement which means Wales’ public sector loses out, or the unfair Barnett formula which leaves Wales shortchanged, Wales is left behind.

“Plaid Cymru is, and always has been clear, that the status quo is not as good as it gets for Wales. Under Labour, we are fed crumbs off the table and told to be grateful.

“A Plaid Cymru Government would have real ambition for our nation, creating a fairer, stronger Wales with funding to adequately invest in our communities.”

“We would be resolute in demanding that Wales gets what we’re owed. We will never give up the fight to ensure our communities get their fair share.”

An amendment to Plaid Cymru’s motion has been tabled by the Welsh Conservatives who will call on the Welsh Government to initiate a review of Wales’ fiscal framework.