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Politics

Calls for ‘outdated’ Barnett funding formula to be replaced

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THE SENEDD has called on the UK Government to replace the “outdated” Barnett funding formula with a new needs-based way of setting public spending in Wales.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.

 

Business

New facilities at Haverfordwest Target Shooting Club agreed

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A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.

A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”

It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”

It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.

It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.

“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”

It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”

The application was conditionally approved by planners.

 

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News

Watchdog criticises health board over £10m GP contract checks

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A HEALTH board has been criticised by Audit Wales after GP contracts worth more than £10m were awarded without sufficient due diligence checks.

Aneurin Bevan University Health Board allowed a GP partnership associated with eHarley Street Primary Care Solutions to take on eight GP contracts in south-east Wales, with a combined annual value of around £10.1m.

Audit Wales said the board should have carried out greater scrutiny before approving the arrangements, including checks on financial resilience, workforce plans, business risks and the partnership’s ability to manage several practices at once.

However, the watchdog found no evidence of fraud and noted the board was dealing with significant pressure in general practice, including vacant contracts and limited interest from other bidders.

The report said weaknesses in governance and scrutiny contributed to later disruption and uncertainty for patients and staff when problems emerged.

Concerns included financial and workforce pressures, unpaid invoices, and issues relating to tax and pension payments. Some contracts were later handed back, requiring the health board to step in to protect services.

Natasha Asghar MS, Welsh Conservative Shadow Cabinet Minister for Health and Social Care, said the findings were “deeply concerning”.

She said: “Patients and staff were left facing disruption and uncertainty because proper scrutiny was not carried out before these contracts were awarded.

“The Welsh Conservatives believe lessons must be learned to ensure robust checks are in place, protect frontline services and restore confidence in primary care across Wales.”

Aneurin Bevan University Health Board accepted the recommendations and said it had already strengthened its processes.

Audit Wales said the case highlighted the need for stronger checks before GP contracts are transferred, particularly when a single partnership is taking on multiple practices in a short period.

 

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News

Welsh Conservatives demand clarity over EHRC guidance in schools

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THE WELSH CONSERVATIVES have called on the Welsh Government to clarify whether new Equality and Human Rights Commission guidance will be implemented in schools across Wales.

Shadow education minister Sam Rowlands MS has written to Cabinet Minister for Education and the Welsh Language Anna Brychan MS following the UK Supreme Court ruling on the Equality Act.

Mr Rowlands said schools, teachers, governors and parents needed clear answers on how the guidance would apply in practice, including on single-sex spaces, safeguarding, changing facilities and sports participation.

He said: “Parents, teachers and pupils deserve clarity from the Welsh Government.

“Schools cannot be left in limbo while ministers avoid making a decision on such an important safeguarding and legal issue.

“The Equality Act applies in Wales, and schools now need clear guidance on what this means in practice.”

In his letter, Mr Rowlands asks whether updated guidance will be issued to schools in Wales, whether schools will be expected to amend existing policies, and what advice will be given to headteachers on safeguarding and compliance with the Equality Act.

He also asks whether the Welsh Government intends to diverge from the approach set out by the EHRC.

The letter says schools and parents require “clear and consistent guidance” to ensure the rights, dignity and safety of all pupils are respected.

 

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