7. What discussions has the Cabinet Secretary had with the new UK Government regarding fair funding for Wales? OQ61481

I had a constructive call with the Chief Secretary to the Treasury last Wednesday, during which we touched on several topics, including fair funding for Wales. There will be the opportunity for a more substantive discussion with the Chief Secretary in the near future.

Thank you for that.

Welsh public services and authorities are facing staggering budget gaps. Merthyr Tydfil council is forecasting a gap of £8 million, and it was reported earlier this year that Caerphilly was looking to save £30 million to set a balanced budget. Now, none of that is inevitable. We've had years of cruel austerity, but Wales's economic woes are compounded by the disastrously unfair funding formula we're trapped in—this Barnett stranglehold in which our economy is gripped. So, I'm glad to hear that you've had that initial discussion. Could you tell me, please, when those further discussions—I would consider them to be urgent—when those urgent further discussions will happen with Keir Starmer's UK Government, to establish a needs-based funding formula for Wales to kick the cruel austerity at last, because all of these budget cuts and the cruelty—because it is a cruelty that will ensue—ultimately stem from political choices.

Well, we are hoping to have the first meeting of the Finance: Interministerial Standing Committee before the end of this month. It will be hosted in Belfast this time, because one of the strengths, I think, of the inter-governmental machinery around finance is that we do move between all of the countries in order to have those discussions. So, that will happen before the end of the month, and I will obviously have a bilateral with the Chief Secretary at that particular meeting.

Cabinet Secretary, all parties in the Welsh Parliament clearly agree that Wales should receive its fair share of HS2 consequentials. It's a matter I raised directly with the previous Westminster Government, and I know some of my colleagues have as well. However, since taking office within the last few weeks, the Labour Secretary of State for Wales, Jo Stevens, has refused to provide and give any further information on this additional funding. When the Birmingham to Manchester leg of HS2 was scrapped, the UK Conservative Government decided to pump £1 billion of that saving into electrification of the north Wales main line. Since Keir Starmer entered Downing Street, there has been no mention whatsoever of what Labour is going to do when it comes to this important electrification project. I also take into account the fact that in the King's Speech nothing of this was mentioned. I heard your response to my colleague Janet Finch-Saunders about the Welsh rail board, so I'd like to know what is your—as the Welsh Labour Government here in Wales—priority for the Welsh rail board going forward, and I'd also like to know are indeed you going to be pushing for fairer funding in relation to HS2 here in Wales, or are you going to be backing down now since your party has made it to No. 10? Thank you.

I think an important point to make is that, even though the previous UK Government referred to funding for the electrification of the north Wales main line, no actual funding was ever identified for that, so I just think that's important to get on record. In terms of the work of the board, insofar as it relates to north Wales, I think that what we want to see, really, is a properly developed plan for investment in north Wales. And we think that, in the first instance, it would be infrastructure priorities, rather than electrification, because those are the things that can bring more people back to using rail. So, those are the priority areas, and we're keen to work with the UK Government and others on that piece of work.