Barnett Floor (Wales)

Carolyn Harris Excerpts

Tuesday 10th November 2015 Westminster Hall

[Nick Thomas-Symonds]

I am grateful to my hon. Friend for that intervention. The Neath Port Talbot example further illustrates and reinforces the point that I made about Torfaen.

The debate deals with an aspect of Westminster funding, the so-called Barnett floor. As Members are aware, Joel—later Lord—Barnett introduced the Barnett formula in 1978, when he was Chief Secretary to the Treasury, in the context of the devolution debate of that era. He did not originally intend that it should become a permanent feature, yet here, some 37 years later, it still governs the Wales-Westminster fiscal relationship.

More recently, in 2009, the interim report of the Holtham commission, “Funding devolved government in Wales: Barnett and beyond”, was published. It suggested that Wales was underfunded.

[Carolyn Harris (Swansea East) (Lab)]

Does my hon. Friend agree that, despite the 2009 Holtham report suggesting the implementation of a floor, it is frustrating that six years later we have still not seen it happen?

[Nick Thomas-Symonds]

My hon. Friend is entirely right. I will come to that in a moment.

The report suggested that Wales was underfunded by £300 million a year compared with how much English regions would receive were the Barnett formula applied to them. In 2010, when the final Holtham report, “Fairness and accountability: a new funding settlement for Wales”, was published, the underfunding gap was even wider, at about £400 million a year, using a needs-based formula.

As my hon. Friend has just pointed out, to prevent a further decline in relative funding per head for Wales, the Holtham interim report had called for a Barnett floor as a temporary solution until a new needs-based formula could be agreed.

--- Later in debate ---

[Alun Cairns]

The figures of £7 billion to £16 billion have been repeated time and again, but Holtham identified that during that period Wales’s relative position was worse. As I have said, the changes made over the past five years have put current spending in Wales within the Holtham range, as acknowledged by the Welsh Government.

[Carolyn Harris]

Will the Minister assure this Chamber that Wales will not be further disadvantaged in the upcoming spending review?

[Alun Cairns]

The spending review is a matter for the Chancellor. We, as a Conservative Government, are delivering on our commitment to introduce the Barnett floor, as we have announced, alongside the spending review. That commitment was repeated in our manifesto and the floor will be introduced, as announced.

Oral Answers to Questions

Carolyn Harris Excerpts

Wednesday 16th September 2015 Commons Chamber

[Stephen Crabb]

The information the hon. Lady refers to was used for illustrative purposes only. I think it is actually helpful to provide information based around real-life case studies so that people can understand how changes we make affect families in different circumstances.

[Carolyn Harris (Swansea East) (Lab)]

6. What discussions he has had with the Secretary of State for Transport on the completion date for electrification of the Great Western line.

[The Secretary of State for Wales (Stephen Crabb)]

I have regular discussions with my right hon. Friend the Secretary of State for Transport. He and I share a total commitment to the electrification of the Great Western line all the way through to Swansea. Both he and the Prime Minister have been clear about the priority we all place on this strategic project.

[Carolyn Harris]

Earlier this week, the Secretary of State told the Welsh Affairs Committee about Sir Peter Hendy’s stakeholder consultation. Are all the stakeholders committed to the project and, more importantly, did he share the UK Government’s commitment to the project with Sir Peter?

[Stephen Crabb]

What matters above all else is our commitment, from the Prime Minister downwards, to completing the project. Opposition Members have expressed a lot of concern about the progress of the project. If they do not believe it is happening, I would encourage the hon. Lady and her colleagues to walk the length of the route, because they will see work happening right now to deliver this really important project.

Oral Answers to Questions

Carolyn Harris Excerpts

Wednesday 17th June 2015 Commons Chamber

[Susan Elan Jones (Clwyd South) (Lab)]

3. What recent discussions he has had with the Chancellor of the Exchequer on the level of funding received by the Welsh Government.

[Carolyn Harris (Swansea East) (Lab)]

5. What recent discussions he has had with the Chancellor of the Exchequer on the level of funding received by the Welsh Government.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

11. What recent discussions he has had with the Chancellor of the Exchequer on the level of funding received by the Welsh Government.

--- Later in debate ---

[Stephen Crabb]

We are aware of the situation in the hon. Lady’s constituency. We stay in close touch with Jobcentre Plus and the Welsh Government to find ways to support those who face uncertainty over their jobs. We have just been through an election campaign in which responsibility over finances was at the heart of the debate. The fact that she is standing here today, saying that the Welsh Government should somehow be immune from shouldering any of the responsibility for getting on top of our national finances, shows that she has learned nothing from the past five years.

[Carolyn Harris]

Wales did not benefit from Barnett consequentials from the Olympics. Will the Secretary of State tell the House whether south Wales will benefit from HS2? If it will not, will there be a Barnett consequential?

[Stephen Crabb]

I welcome the hon. Lady to the House. HS2 is a strategic project that will benefit the whole United Kingdom. It will benefit Wales, not least through the new hub station at Crewe, which will increase the potential for electrification in north Wales. On that basis, there is no argument for a Barnett consequential.