Peter Hain ensures Wales gets a fair deal

Rt Hon Peter Hain

New funding arrangements for Wales will ensure a fair deal for the people of Wales for years to come. Under the deal negotiated with the UK Treasury the UK will take action if Wales becomes disproportionately disadvantaged by the Barnett formula.

Mr Hain said “This commitment is a major breakthrough for Wales. The Barnett formula has served Wales well over the years but action was needed to ensure that funding did not fall below what Wales needs”.

“The financial situation is tough right now but we must not forget our principles. I am committed to the devolution process. For it work the right level of funding is needed. This shows the Government is committed to making devolution work. Next year the Welsh budget will rise to almost £15.5 billion, helping to ensure the delivery of front-line services that the people of Wales need. This deal will ensure Wales will always get the best possible deal in the future”.

Mr Haid added ” The Holtham commision made clear that, if we do not take action, spending could decline relative to the rest of the UK. That is not acceptable. And that is why I have fought so hard for this new commitment from the Treasury to assess the impact of future spending reviews in Wales. If a spending review results in a bad deal for Wales, if Wales is disproprtionately disadvantaged compared to other parts of the UK, then we now have a mechanism to take action”.