Senedd Members have backed calls to review Wales’ funding formula to increase fairness and transparency in how the nation is financed.
A cross-party motion tabled by Plaid Cymru MS Heledd Fychan and Labour MS Lynne Neagle called for an overhaul of the Barnett Formula, which determines the size of the Welsh block grant from the UK Treasury.
The motion also called for the removal of restrictions on the Wales Reserve and reaffirmed support for £14 billion pledged for Welsh rail infrastructure by the UK Government.
Speaking in the chamber on Tuesday October 6, finance minister Elin Jones said the debate was about ensuring Wales receives the funding and fiscal flexibility required "to deliver for communities across the country, for every postcode".
She described the demands as "practical, achievable steps" to strengthen the Welsh economy and support public services.
“Little helpers”
Reform's shadow finance spokesperson, Cai Parry-Jones, condemned the debate, claiming the public would not put fiscal reform "anywhere near the top of their agenda".
He said: “What really is the point of tabling this motion today and taking up an hour of Welsh taxpayers' time?
“The motion was co-tabled by the Plaid Cymru government and its little helpers, in a spectacular reversal of roles, Welsh Labour.
“So, unless there is some kind of revolt going to happen on the back benches, we already know what the outcome will be.”
He criticised the “utter vagueness” of the motion, calling on the Welsh Government to specify which fiscal powers it wants to enhance, and to “name them, cost them and explain the safeguards”.
“Party of devolution”
Welsh Labour MS Huw Thomas told members his party has always pushed for increased funding and powers for Wales as part of a strong UK.
Mr Thomas, who is his party's finance spokesperson, described Welsh Labour as "the party of devolution" and said it supports reviewing the Barnett Formula and improving fiscal flexibilities. But he said any reform requires agreement from all four UK nations.
He said: “We know that the Scottish Government continues to evade demands for a system based on need, so I think the Welsh Government has a key role in making the case to secure an agreement across the nations of the UK.”
“Reasonable”
Conservative MS Sam Rowlands told the Siambr the current funding formula is “beyond its shelf life”.
Mr Rowlands said it was “reasonable” to ask after "all these years" whether the Barnett formula remains the “right mechanism” for funding the different parts of the UK.
However, he stressed that any reforms must be evidence-based to create a system that's fair, transparent and reflective of Wales’ needs without putting existing funding at risk.
The cross-party motion was passed by the Senedd with 59 votes in favour and 31 against.
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