Plaid Cymru yesterday seized on comments made by Alastair Darling on a visit to Wales this week at which he promised to keep the Barnett formula as it is “because it works”.
Plaid Cymru’s Elfyn Llwyd said that Mr Darling’s two claims that Labour ‘will maintain it (the Barnett formula)’ and ‘will make sure that Wales is not disadvantaged’ were completely incompatible and also completely contrary to promises made by Peter Hain.
The controversial Barnett formula, the means by which a block granted is allocated to the devolved administrations, has long been condemned as out-dated and unworkable, by Lord Barnett himself and more recently by several independent commissions.
The Holtham Commission for one found that under the crude way in which the Barnett formula operates, Wales will lose out by up to £3billion over the next three years.
Plaid’s Westminster leader Elfyn Llwyd said:
“It is now widely accepted that the Barnett formula, the crude method by which the Welsh Assembly Government receives funding from Westminster, is completely outdated. As Lord Barnett himself admits, it was only ever meant to be a short term solution, and now four independent reports later, Mr Darling is still refusing to face facts.
“To say that such a system “works” is an insult to the voters’ intelligence and to the integrity of these findings.
“Wales has been severely under-funded and will lose up to £3billion over the next three years alone. Plaid has called for the formula to be scrapped and reformed for years, and now leading economists are backing ours concerns.
“What is incredible too is that even though Labour has tried to avoid the issue, once we finally get a vague admission from the Secretary of State for Wales that it needs to be reviewed – his Chancellor has now ignored him too.
“On Mr Hain’s own website, it reads that he is now insisting that the Barnett formula be reformed to deliver a better deal for Wales – another turn out for the books!
“Labour needs to stop playing with crucial issues such as these – the voters deserve honesty. Wales desperately needs its fair share – money that pays for our school, hospitals and other vital frontline services.
“Who are we to believe when two members of the Cabinet cannot agree over the central question lying over Welsh funding?
“It is becoming ever more apparent that this election will be dominated by one key question – who do you trust most? Plaid Cymru MPs will only ever put Wales and its communities first.”
