Public Expenditure

HM Treasury written question – answered on 10th July 2015.

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Photo of Paul Flynn Paul Flynn Labour, Newport West

To ask Mr Chancellor of the Exchequer, what recent comparative assessment he has made of the adequacy of the level of public spending per capita in Wales to England, Scotland and Northern Ireland; and if he will review the working of the Barnett formula.

Photo of Greg Hands Greg Hands The Chief Secretary to the Treasury

In 2012 the government committed to reviewing levels of relative funding with the Welsh Government at each Spending Review. The latest assessment, conducted at the Spending Round in 2013, found that Wales is not underfunded, and that current levels of relative spending are within the range suggested by the Holtham Commission.

We have committed to introducing a funding floor at the next Spending Review to make sure that this remains the case. This was agreed in the expectation that the Welsh Government would call a referendum on Income Tax powers, and become responsible for raising a greater proportion of the money it spends.

Funding arrangements for the devolved administrations are kept under review, as set out in HM Treasury’s ‘Statement of Funding Policy’. However, we have been clear that the Barnett formula will remain in place.

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