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MINISTER ACKNOWLEDGES NEED FOR FAIR WELSH FUNDING - WILLIAMS

May 27, 2010 11:30 AM

Welsh Liberal Democrat MP for Brecon and Radnorshire Roger Williams has today welcomed the acknowledgement of the need for fair Welsh funding by the Chief Secretary to the Treasury, David Laws, after raising the issue in a question in the House of Commons.

Mr Williams asked the question after Shadow Chancellor Alistair Darling asked an urgent question about the £6.25 billion cuts announced this week by the Coalition Government.

Mr Williams highlighted the statement made by Peter Hain in November last year about providing compensatory payments to the Welsh Budget where convergence had taken place, however a Parliamentary Answer by the Treasury confirmed that while convergence would be assessed in the next Spending Review it was not 'currently expected'.

Commenting, Roger Williams said:

"Holtham made it clear that Wales is losing out and the Government has set out their plans to look at the funding settlement, but there are real problems faced in Wales as a result of underfunding.

"I was pleased that David Laws acknowledged the difficulties we face and I look forward to working with him to ensure that we get the best possible deal for Wales.

"The Treasury made clear in answers before the election that they didn't believe they would ever have to implement Peter Hain's so-called 'funding floor' so there is a need to continue to concentrate on the issue of Welsh funding.

"We have been promised a Treasury Review of Welsh funding by the Coalition Government, which is welcome, but I hope that the Government will make sure that any cuts are fairly distributed, and the Minister's response was encouraging in that regard."

Notes:

Text of Roger Williams's question:

Roger Williams (Brecon and Radnorshire) (LD): On 26 November 2009, the then Secretary of State for Wales made a commitment, which was supported by the current Secretary of State for Wales, that the Government will take action if Wales is adversely affected by the outdated Barnett formula. Will the Chief Secretary and the Government make a similar commitment, particularly as regards Barnett consequentials resulting from Government spending reductions?

Mr Laws: My hon. Friend is absolutely right that we need to ensure that these things take place in a fair way. He will welcome the fact that a fair share of the additional £500 million that we are investing to sustain the recovery will go to Wales.

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