Part of 1. Questions to the Minister for Finance and Local Government – in the Senedd at 1:46 pm on 22 March 2023.
I would say that the Barnett formula and the fiscal framework that was agreed by the First Minister when he was in this role with the UK Government actually does provide some advantages to Wales in terms of the fact that the Barnett formula does recognise relative need. I think that's important and that's certainly something that we wouldn't want to move away from. I think that, where there are challenges—as the First Minister, I think, set out in First Minister's questions yesterday—is where the UK Government is the judge and jury in terms of the application of the Barnett formula. I think that that is where some of those real challenges arise, for example the classification of HS2 as an England-and-Wales project when it self-evidently isn't. HM Treasury's own analysis suggests that it will have a disbenefit to south-west Wales. I think that all of those things do lead us to the point where I think a more independent look at the Barnett formula and how it's applied is important. I think that the work that we've done in terms of inter-governmental relations is important as well. When we get to the point of testing some of this through the disputes mechanism, I think it will be an important moment for us to make those arguments quite clearly to the UK Government, using the process that we've agreed.