WILLIAMS SLAMS TREASURY NON-ANSWER ON BARNETT

2.52.30pm GMT Wed 16th Dec 2009

Commenting on the Government's response to the Lords Select Committee on the Barnett Formula, Liberal Democrat Shadow Secretary of State for Wales Roger Williams MP has blasted the Government's failure to back a needs-based replacement for the Barnett Formula.

The Lords Committee suggested an allocation system based on the Australian Grants Commission, but in response the Government said:

We note the Committee's views on the desirability of establishing an independent UK Funding Commission, notwithstanding the potentially substantial costs of establishing and running such a system, but currently have no plans to set up such a body.

Commenting, Roger Williams said:

"We've waited months for this response, and yet the best the Government can come up with is 'No, but we're not going to tell you why.'

"The Committee put forward a serious proposal on a needs based system, and yet this has been dismissed without any reasoning whatsoever, which frankly is an insult to all of those who have worked hard to put the Committee's Report together.

"It's no secret that the Treasury are determined to carry on with Barnett, but having been repeatedly and comprehensively informed of the funding gap faced by Wales, we should expect a lot more than a shrugging of the shoulders.

"Along with Peter Hain's flawed funding scheme, this inspires no confidence that we will get a full and constructive response to Holtham, let alone a solution that would give Wales the funding it deserves.

"The Labour Government are clearly worried that an independent allocation system would deliver rational and not political judgements on funding for Wales. The Government has dismissed the idea precisely because it makes too much sense."

Notes:

Government response is available here:

http://www.official-documents.gov.uk/document/cm77/7772/7772.pdf