Politics
Calls for ‘outdated’ Barnett funding formula to be replaced
THE SENEDD has called on the UK Government to replace the “outdated” Barnett funding formula with a new needs-based way of setting public spending in Wales.
Opening a Plaid Cymru debate, Rhun ap Iorwerth said having to make a case for fair funding speaks volumes about Wales’ status within an unequal union.
He told the chamber the population-based Barnett formula, which was devised in the late 1970s and only intended as a temporary measure, does not reflect the needs of Wales.
The Plaid Cymru leader described the funding formula as a weak, short-term solution from the 20th century based on the needs of another country.
He said: “It has become more and more apparent over the years that the Barnett formula is well past its sell-by date.”
Calling out apathy at Westminster, Mr Iorwerth accused the Conservatives of placing barriers before any attempts to reform and he criticised Labour for refusing to promise change.
He urged the new first minister to stand up for Wales, saying: “I want to hear a Labour first minister putting Wales first and not taking ‘no’ for an answer from Keir Starmer.”
Mr Iorwerth told MSs the Barnett formula has been a cornerstone for a broader pattern of unfairness faced by Wales in recent years.
He raised examples such as a lack of powers over the Crown Estate and £4bn in consequential funding for Wales from the HS2 project being withheld.
The Ynys Mon MS said: “This general theme of injustice that flows through all of those cases, and more, all emerge fundamentally from the failure to have fair and appropriate funding arrangements in place, and the Barnett formula is at the heart of that.”
Peter Fox said Wales continues to receive record funding, with the largest block grant in the history of devolution supplemented by about £440m of levelling-up funding.
The Conservatives’ shadow finance minister agreed that there needs to be a rethink about how the Barnett formula is calculated to better address Wales’ unique challenges.
Mr Fox said some strides were made to make the settlement fairer, with a 115% funding floor agreed between the Welsh and UK Governments in 2016.
He told the chamber: “That ensures the Welsh settlement will never drop below 115% of the money spent on public services in England. But we know currently that that floor hasn’t had to kick in, as the current settlement is delivering 120%, ie £1.20 for every £1 spent.”
Mr Fox stopped short of calling for the Barnett formula to be scrapped, saying it would be unrealistic in the UK context.
Peredur Owen Griffiths, Plaid Cymru’s shadow minister, said the state of the Welsh budget for the financial year from April shows in stark terms how poorly Wales is served.
He warned: “The experiences of the past few months have conclusively demonstrated that Welsh public finances are on an utterly unsustainable trajectory.”
The South Wales East MS argued the Barnett formula is ill-equipped to address the precarious state of council finances, with the threat of bankruptcy looming large.
He told the chamber that Wales’ 22 councils have a combined debt of £5.6bn, according to a UK public accounts committee report, with a £354m funding gap next year.
He said: “It would take a work of fiscal fiction that Jeremy Hunt himself would be proud of to argue the Barnett formula, in its current form, is sufficient to rectify this dire predicament.”
Mabon ap Gwynfor focused on the needs of Wales, saying: “The truth is, it’s more expensive to provide health and social care to older, more rural and impoverished communities.”
He argued replacing the Barnett formula should be regarded as a vital investment in health.
Sioned Williams, a fellow Plaid Cymru MS, said a needs-based model would not be an instant panacea but it would undoubtedly be a necessary step in the right direction.
She said: “We need to be honest with voters that the current arrangements will only keep us standing still on a path to a fairer and more equal society.”
Mike Hedges, a Labour backbencher, pointed out that the local government funding formula shows that a needs-based solution can still be controversial.
“The discussion we need is about how to get a needs-based framework to work,” he said.
Rebecca Evans told the chamber it is clear the UK funding model does not work for Wales.
The finance minister said the funding system for devolved governments is characterised by quick fixes, inconsistency, uncertainty and instability.
Ms Evans called for a new relative needs-based approach, overseen by a body independent of the UK Government and to be agreed by all four nations
She said: “That would be fairer but also more efficient and effective, and it would help reduce the distortions and inefficiencies that arise from the current system.
“It would enable a more rational, transparent allocation of public spending across the UK.”
The Plaid Cymru motion and Conservative amendment were defeated following the debate on March 20. The motion as amended by the Welsh Government was agreed, 37-15.
News
The King’s Christmas message reflects on personal challenges and global struggles
THE KING delivered a heartfelt Christmas message at 3:00pm today, reflecting on his and the Princess of Wales’ battles with cancer, global conflicts, and the enduring power of compassion and hope.
His Majesty spoke from the Chapel of the former Middlesex Hospital in London, now a vibrant community space, sharing gratitude for the healthcare professionals who supported him and his family through illness.
Full text of the King’s speech:
“Earlier this year, as we commemorated the 80th Anniversary of D-Day, the Queen and I had the enormous privilege of meeting, once again, the remarkable veterans of that very special generation who gave of themselves so courageously, on behalf of us all.
“Listening to these once-young service men and women touched us deeply as they spoke of their comrades, drawn from across the Commonwealth, who never returned and who now rest peacefully where they made the ultimate sacrifice. Their example of service and selflessness continues to inspire, across the generations.
“During previous commemorations, we were able to console ourselves with the thought that these tragic events seldom happen in the modern era.
“But, on this Christmas Day, we cannot help but think of those for whom the devastating effects of conflict – in the Middle East, in Central Europe, in Africa and elsewhere – pose a daily threat to so many people’s lives and livelihoods.
“We also think of the humanitarian organisations working tirelessly to bring vital relief. After all, the Gospels speak so vividly of conflict and teach the values with which we can overcome it.
“The example that Jesus gave us is timeless and universal. It is to enter the world of those who suffer, to make a difference to their lives and so bring hope where there is despair.
“As the famous Christmas Carol, ‘Once In Royal David’s City’ reminds us, ‘Our Saviour holy’ ‘came down to Earth from Heaven’, lived among ‘the poor and mean and lowly’ and transformed the lives of those he met, through God’s ‘redeeming love’.
“That is the heart of the Nativity Story and we can hear its beat in the belief of all the great faiths in the love and mercy of God in times of joy and of suffering, calling us to bring light where there is darkness.
“All of us go through some form of suffering at some stage in our life, be it mental or physical. The degree to which we help one another – and draw support from each other, be we people of faith or of none – is a measure of our civilisation as nations.
“This is what continually impresses me, as my family and I meet with, and listen to, those who dedicate their lives to helping others.
“From a personal point of view, I offer special, heartfelt thanks to the selfless doctors and nurses who, this year, have supported me and other members of my family through the uncertainties and anxieties of illness, and have helped provide the strength, care and comfort we have needed.
“I am deeply grateful, too, to all those who have offered us their own kind words of sympathy and encouragement.
“On our recent visit to the South Pacific to attend the Commonwealth summit, I was reminded constantly of the strength which institutions, as well as individuals, can draw from one another. And of how diversity of culture, ethnicity and faith provides strength, not weakness.
“Across the Commonwealth, we are held together by a willingness to listen to each other, to learn from one another and to find just how much we have in common. Because, through listening, we learn to respect our differences, to defeat prejudice, and to open up new possibilities.
“I felt a deep sense of pride here in the United Kingdom when, in response to anger and lawlessness in several towns this summer, communities came together, not to repeat these behaviours, but to repair. To repair not just buildings, but relationships. And, most importantly, to repair trust; by listening and, through understanding, deciding how to act for the good of all.
“Again, listening is a recurrent theme of the Nativity story. Mary, the Mother of Jesus, listened to the Angel who revealed to her a different future full of hope for all people. The message of the Angels to the shepherds – that there should be peace on Earth – in fact echoes through all faiths and philosophies.
“It rings true to this day for people of goodwill across the world. And so it is with this in mind that I wish you, and all those you love, a most joyful and peaceful Christmas.”
News
First Minister urges support for the lonely in Christmas message
FIRST MINISTER Eluned Morgan has paid tribute to those working over the festive season and encouraged people to check in on those who may be lonely in her first Christmas address to the nation.
Baroness Eluned Morgan, who was confirmed as First Minister of Wales following a Senedd vote in August, described the role as the greatest honour of her life. The former health minister, who grew up on a council estate in Ely, became the first woman to hold the office.
NADOLIG LLAWEN
In her address, the First Minister said: “Nadolig Llawen i chi gyd. Merry Christmas everyone.
“I want to wish you all a joyful and peaceful Christmas – wherever and however you’re celebrating.
“I hope you’re able to spend this time with family, friends and loved ones, and find time for some deserved rest.
“I would like to say a ‘diolch o galon’ to the many people who will be working over the festive season.”
HOPE FOR THE NEW YEAR
Baroness Morgan continued: “From our emergency services to our NHS and our local councils – thank you for everything you do to keep us safe at this time of year.
“And of course, to all the volunteers who give up their time for others. That’s the real spirit of Christmas.
“Christmas, we know, can be a lonely time for many, so if you do one thing this Christmas, be sure to check in on others within your community.
“Together, we can all look forward to the new year with hope.
“Nadolig Llawen a Blwyddyn Newydd Dda.”
News
Pembrokeshire County Council invites public feedback on budget plans
PEMBROKESHIRE County Council is calling on residents to share their views on the upcoming budget as it faces significant financial pressures.
The consultation, open until January 5, aims to identify which services are most valued by the community and where savings could be made.
An update on the provisional funding settlement from the Welsh Government was presented to the full council last week. Councillor Joshua Beynon, Cabinet Member for Finance and Efficiencies, noted that while the 3.6% increase—equating to an additional £8.1 million—was more favourable than expected, it still leaves a funding gap of approximately £28.1 million.
Councillor Beynon said: “Difficult decisions lie ahead despite the improved settlement. We need to prioritise services that matter most to our residents.”
Detailed reports on the settlement’s impact and the projected funding shortfall will be discussed by the cabinet and scrutiny committees early next year, before being presented to the full council in February.
Residents can have their say by completing an online response form available on the council’s website. A budget modelling tool is also provided for public use.
Paper copies of the response form can be requested by calling 01437 764551 or emailing [email protected].
All responses must be submitted by January 5.
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