Plaid Cymru Finance spokesperson Chris Franks AM has renewed his party’s call for the failing funding formula which sets the size of the Welsh budget to be replaced immediately by the “ConDem” coalition in London. Mr Franks made the call in response to the final report of the independent Holtham Commission which was set up to review the way Wales is funded.
The report sets out the need for the funding system (the Barnett Formula) to be replaced with a formula based on need, which would ensure a fair level of funding for Wales from Westminster. In light of the ConDem Coalition’s refusal to take action to replace Barnett since it came to power, the report calls for a ‘floor’ mechanism, which would reduce underfunding in the short term pending further reform. The report also supports Plaid’s call for the Welsh government to be responsible for raising its own funds through taxation and borrowing.
The South Wales Central AM said that the refusal of the Conservative/Lib Dem government to act on this important issue was all the more shocking, considering the fact that both parties had called for it to be addressed while in opposition.
Plaid Finance Spokesperson and AM for South Wales Central, Chris Franks, said:
“The independent commission has identified the clear need for the funding of Wales by Westminster to be sorted out as a matter of urgency. Before the election, the Lib Dems and Tories agreed with Plaid that the underfunding of Wales needs addressing yet they now refuse to take any action at all.
“There is a moral duty on both the Conservatives and the Lib Dems to take some firm action on this issue in light of their view before entering government and now the recommendations of this clear independent report. To continue to refuse would be a breach of trust and a demonstration of a clear decision to ignore what’s best for Wales. This report has shown that Wales’ underfunding can be remedied, while saving money for the UK government at the same time.
“What the Holtham Commission has done is put together a positive vision for how public services and the workings of government in Wales should be funded. The Welsh government should not only be responsible for spending money, it should be responsible for raising money too and more importantly, it should be accountable to the people of Wales for its actions in doing both.
“However, such important pieces of independent work should not be left on shelves to gather dust. I would urge the UK government to realise the importance of the issues raised in the report and respond positively, allowing this Welsh government to continue its work for the good of our communities.”
