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Senedd Committee accuses UK Treasury of undermining devolution

14 Oct 2024 4 minute read
Chancellor Rachel Reeves – Jonathan Brady

Emily Price

A Senedd Committee is calling for a cultural shift in relations between Cardiff and London to stop the undermining of the Welsh Government by the UK Treasury.

The demand is in response to what the Committee described as a “lack of mutual respect and parity of esteem” experienced by the devolved institutions in Wales when trying to engage with the previous Conservative UK Government on financial matters.

The report published today (October 14) found that the “whims or personalities” of Treasury ministers has been the overriding factor when it comes to communication between London and Cardiff.

Since the Committee started their probe, a new Labour UK Government has been elected and there have been numerous changes within the Welsh Government.

The Committee is now calling for both sides to take this opportunity to reset the relationship between administrations and ensure that processes are put in place to improve long-term communication.

HS2

Since the General Election, Labour at both ends of the M4 have insisted the relationship between both governments has been adjusted.

But the report has urged the UK Government to be more transparent with future funding announcements and make clear if cash provided to Wales is “new money” and not funding which has already been previously announced.

The Committee has highlighted the issue of the HS2 rail link which was classified an England and Wales project despite it not crossing the border.

It’s classification by the Conservatives meant Wales wasn’t eligible for extra cash despite Scotland and Northern Ireland both receiving proportional funding.

The Committee is calling for the Welsh Government to have a greater role in the categorisation of big projects like HS2 to avoid the Treasury making subjective calls on decisions that have a significant impact on funding levels in Wales.

Impact

The Committee is also demanding that the dates of UK spending announcements are published in advance to enable the Welsh Government to plan its budget more effectively and to allow more time for the Senedd to scrutinise such decisions.

The report found that funding decisions by the UK Treasury undermine inter-governmental relations by treating the Welsh Government like another UK Government department rather than a devolved government.

Committee members say that the ‘Finance Interministerial Standing Committee’, which brings together the governments of the UK, Wales, Scotland and Northern Ireland, should be used to share financial information to the devolved governments in advance of spending announcements.

The Senedd Finance Committee also said it was frustrated with the “lack of engagement” from the UK Treasury.

Members said that because budgetary decisions in the UK and Wales are closely linked the refusal of Treasury ministers to appear before the Committee hampered its work.

The report called for new Labour ministers to “show more respect” and engage with the Senedd in the “spirit of openness and transparency”.

‘Disregard’

Peredur Owen Griffiths MS, Chair of the Finance Committee, said: “Too often, politicians in London seem to pretend that devolution doesn’t exist, showing a disregard to the devolved institutions when making spending announcements.

“Today’s report shows that the relationship between the UK Government and the Welsh Government is strained and often ineffective – but there is hope for the future.

“The Committee is calling for maturity between the Welsh and UK governments. Informing the devolved governments about spending announcements that affect them should be built into the system, not just up to individual ministers.

“We’re hoping a new government in London will take the issues raised by this report seriously and reset the relationship to make sure that devolution is respected.”

A Welsh Government spokesperson said: “Since the committee started this inquiry, a new UK Government has been elected which has provided a welcome re-set in relations between Wales and Westminster with two governments now working together on a shared vision for Wales’ future.

“We appreciate the committee’s support on many of the Welsh Government’s key areas of focus, and look forward to working alongside the new UK Government to take these forward.

“We thank the committee for its report and recommendations, which we will now consider in detail.”


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S Duggan
S Duggan
22 days ago

Westminster is in it’s own bubble. The concept of spreading more power out across the country has never been part of it’s mindset. It’s still stuck in the 19th century. The British establishment doesn’t see Cymru as a separate identity with it’s own devolved government. It’s a hard mindset to break and probably will not be broken until independence.

Barnaby
Barnaby
22 days ago

Even the name Treasury, a place where pirates stash their loot, is inappropriate yet fitting.

aled rees
aled rees
22 days ago

The robbing of Wales will continue until welsh labour start standing up for Cymru and Cymru alone.I’m not holding my breath.Time for a change,bring in Plaid to see what they are made of.

Linda Jones
Linda Jones
22 days ago

As far as I can tell there is no separation between the Labour party in Wales and England. It is one organisation with a top down approach to decision making and policy. None of our Welsh Labour politicians, whether in the Senedd or Westminster, are fighting for the rights and interests of Wales it seems to me. Ultimately they can’t stray too far and remain part of the Labour party, they take their orders from Starmer and the Labour party machine with a little flexibility so we can all go on pretending that Labour in Wales has a separate identity

Linda Jones
Linda Jones
22 days ago

There is no real distinction between the Labour party in England and the Labour party in Wales, They are just two parts of the same organisation ruled from Westminster with a top down system of policy making. Its fantasy land to assume that real respect and fairness for Wales can be achieved by the Labour party. Labour politicians in the Senedd and Westminster represent themselves and ‘the party’ while taking orders from Westminster and adhering to the party line

Dai Ponty
Dai Ponty
22 days ago

Welsh Labour and London Government Labour 2 sides of the same coin Labour and Tories both Unionist Parties and look on Wales as a Colony or a Glorified Country council being part of England we do not have the same powers as the other devolved Governments Scotland and Northern Ireland neither do we receive the same Money time to leave the DISUNITED KINGDOM

Brian Coman
Brian Coman
22 days ago

Morgan did say things would be different for Wales after the election of a Labour Government. More crystal ball gazing that is stuck in the mist.
First the 20 mph that everybody will get used to…that didn’t happen..and now the golden uplands of the Labour victory. It’s not going to happen..not a penny !

John Ellis
John Ellis
22 days ago

The hard reality can be discerned by focusing on the technical terms embedded in two phrases: first, the absolute constitutional supremacy of ‘the Crown in Parliament’ and, second, the simple word ‘devolution’.

The first phrase emphasizes unambiguously where absolute ultimate authority lies, and the second confirms that the Senedd’s authority is wholly derivative.

And ‘what the lord has given’ the lord can just as readily opt to amend or even take away.

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