Toque on "Call for evidence on Welsh finance"

Toque — Thu, 09 Oct 2008 14:12:34 +0100

Over the last few weeks Hansard has a couple of Welsh MPs pointing out that the Big Lottery Fund (which apparently opperates a semi-official needs-based formula) gives Wales 6.5% of the national pot.

This compares favourably to the 5.38% that they get in 07/08 under the Barnett Formula, and their 4.9% of the UK population.

Call for evidence on Welsh finance, Tom Griffin

Tom Griffin — Thu, 09 Oct 2008 13:34:03 +0100

Tom Griffin (London, OK): The Independent Commission set up to examine the funding of the Welsh Assembly Government began its work this week.

The Commission's call for evidence from interested parties comes as rising inflation is forcing the Government to dip into its reserves to cover its spending plans.

It will take over £200m from reserves, cutting them to 1% of the total budget, as spending rises to £15.2bn.

The money released will fund priorities including £60m over two years for the Foundation Phase education for three-to-seven-year-olds.

But opposition parties said local government was being "clobbered".

Over at the Institute of Welsh Affairs blog, James Foreman-Peck of Cardiff Business School argues that the Commission should consider the option of greater borrowing powers:

Devolving borrowing powers will be resisted by the Treasury on the grounds that there is an implicit Treasury guarantee to such borrowing although they cannot control the amount. The UK central government would be obliged to pick up the tab if the Welsh Assembly Government defaulted. But are we not seeing something like this for our big commercial banks at the moment? Anyway the Treasury’s point will need addressing in any recommendation for greater powers.

open Democracy News Analysis - Call for evidence on Welsh finance, Tom Griffin - Comments

Toque on "Call for evidence on Welsh finance"

Call for evidence on Welsh finance, Tom Griffin