Senedd members call for fairer funding from UK Government
Rhun ap Iorwerth led a debate calling for the 'outdated and unfair' Barnett formula to be scrapped, warning Wales gets a 'poor deal'.
The population-based Barnett formula – which was devised as a temporary measure in the late 1970s by Labour's Joel Barnett – is used by the Treasury in Westminster to set public spending in Wales, Scotland and Northern Ireland.
Mr ap Iorwerth told the Senedd: 'The inadequacy of the Barnett formula has been apparent ever since its inception, which, of course, way predates the devolution era.'
The Plaid Cymru leader pointed out Wales faced a £72m shortfall from Westminster to cover the increased cost of national insurance in the public sector due to the 'flawed' formula.
Mr ap Iorwerth argued Wales is owed around £5bn from rail projects across the border being classified as 'England-and-Wales', denying the Welsh Government consequential funding.
He criticised Darren Jones, chief secretary to the Treasury, for telling a Welsh MP he should be 'more grateful' for rail cash, which 'typifies the contempt shown by the UK Government'.
Sam Rowlands, for the Conservatives, called for a review of the fiscal framework – a 2016 agreement between the Welsh and UK Governments on funding and tax powers.
He said: 'In simple terms, the Welsh Government receives £1.20 from the UK Government for every £1 spent on public services in England.'
Mr Rowlands said Scotland has had two such reviews since 2015.
He added: 'Our friends in Northern Ireland have benefited from recent reviews too. Their most recent review, published in 2024, provides a Barnett needs assessment of a 24% increase against Wales' 20%. So, it doesn't seem right to me.'
Pointing out that Scotland and Northern Ireland can borrow £3bn compared with £1bn in Wales, Rhys ab Owen said: 'County councils, in proportion to the population they represent, also have more borrowing powers than the Welsh Government.'
Responding to the debate on June 25, Mark Drakeford backed the motion which is 'nothing more than a restatement of the long-standing policy of successive Welsh Governments'.
He agreed with Lord Barnett who himself described the formula as grossly unfair in 2003.
The former first minister vowed to make the case for replacement of the Barnett formula at a meeting of finance ministers from the four nations in London the following day.
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