Part of 1. Questions to the First Minister – in the Senedd at 2:00 pm on 5 November 2019.
What a contorted line of argument, Llywydd. Let me start: the Member was correct in what he said at the beginning—that those HMRC figures show that £12 billion more is spent on public services in Wales than is raised in Wales. That's £4,000 for every family in Wales. Where I don't think he is right is in saying that these things are not thought about or considered.
Let me, for a moment, pay tribute to David Gauke, then the Chief Secretary to the Treasury, now the discarded Conservative member, who negotiated the fiscal framework with the Welsh Government that provides a 105 per cent multiplier for any expenditure that comes through for English purposes until such time as the floor that Gerry Holtham talked about in his report has been achieved. So, I think a lot of work went on early in this Assembly term to look at those financial arrangements. We said at the time—we say it again now—that, while that was welcome progress, what is really needed is a fundamental reform of the way that financial arrangements happen around the UK so that there is a needs basis to it, and Barnett has no basis in need at all.