Plaid Cymru table amendment to King’s Speech to deliver fair funding for Welsh public services

Plaid Cymru Treasury spokesperson, Ben Lake MP, has today (16 July) tabled an amendment to the King’s Speech to put Welsh public services ‘back on a sustainable footing through a needs-based funding formula.

More than 35 bills are expected to be announced in the King’s Speech on Wednesday, as the new Labour government sets out its legislative agenda.

Mr Lake pointed out that Labour was elected on a manifesto that promised “no return to austerity” but warned that public services were facing “eye-watering budget gaps”.

He said that multi-year funding settlements for the Welsh Government would provide public services with “greater clarity on their budgets”.

The Ceredigion Preseli MP also reiterated Plaid’s call for Wales to receive full consequential funding from HS2 and other English infrastructure projects.

He pointed out that all parties in the Senedd support the principle, including the ruling Labour Party.

On a UK level, however, Labour have refused to commit to the principle.

Severe strain

Mr Lake said said: “Welsh public services are under severe strain, with Cardiff Council just the latest to announce an eye-watering budget gap of almost £50 million next year.

“A new Labour UK Government, elected on a manifesto promise of ‘no return to austerity’, must demonstrate in this King’s Speech how it plans to put our public services back on a sustainable footing.

“Plaid Cymru has tabled an amendment to the King’s Speech which would establish a needs-based funding formula for Wales, that would more adequately account for factors such as relative poverty levels, ill health, and the percentage of children and retired people in the population.

“Our amendment would also see the introduction of multi-year funding settlements for the Welsh Government, moving away from the current, ad-hoc funding process which prevents more effective budget setting that would provide public services with greater clarity on their budgets.

“We also call for a reformed fiscal framework to ensure that Wales receives full consequential funding from HS2 and other English infrastructure projects by mandating that Wales’ funding comparability factor for these and future transport projects is set at 100%. This call is supported by all parties in the Senedd, including the ruling Labour Party.

“Plaid Cymru is ready to be a serious and constructive opposition to the Labour UK Government. We will hold the Government to account for its promises to Wales and use every opportunity to secure a fairer deal for the people of Wales.”

Change

The Labour Government says it will use its mandate for change to put economic growth at the heart of its legislative agenda as it prepares for The King’s Speech at the State Opening of Parliament on Wednesday.

Legislation will include a bill to enforce tough new spending rules, designed it says to “ensure economic growth, while avoiding the chaos which left families with spiralling bills and wreaked misery on people’s lives”.

Prime Minister Keir Starmer said: “Our work is urgent. There is no time to waste. We are hitting the ground running by bringing forward the laws we will need to rebuild our country for the long-term – and our ambitious, fully costed agenda is the downpayment on that change.

“From energy, to planning, to unbreakable fiscal rules, my government is serious about delivering the stability that is going to turbo charge growth that will create wealth in every corner of the UK.

“The task of national renewal will not be easy, and this is just the down payment on our plans for the next five years, but the legislation set out at the King’s Speech will build on the momentum of our first days in office and make a difference to the lives of working people”.