Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether she plans to provide additional support to devolved governments for public sector pay costs.
Answered by James Murray - Chief Secretary to the Treasury
Public sector pay is a devolved responsibility. This means it is for the devolved governments to decide how to allocate the funding they receive across their areas of responsibility, including public sector pay.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of planned reductions in departmental spending after 2028 on the Welsh block grant during the next Senedd term.
Answered by James Murray - Chief Secretary to the Treasury
As a result of decisions at Budget 2025, the Welsh Government will receive an additional £320 million RDEL and £185m CDEL through the operation of the Barnett formula on top of the record settlement provided at Spending Review 2025. This means that the Welsh Government’s settlement continues to grow in real terms between 2024-25 and 2028-29.
The Welsh Government are free to allocate Barnett consequentials as they see fit across their devolved priorities
Where policy changes will take effect in years beyond the existing Spending Review 2025 period, the Barnett formula will apply when departmental budgets change at the next Spending Review.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of front-loaded Barnett consequentials on the Welsh Government’s medium-term financial planning.
Answered by James Murray - Chief Secretary to the Treasury
As a result of decisions at Budget 2025, the Welsh Government will receive an additional £320 million RDEL and £185m CDEL through the operation of the Barnett formula on top of the record settlement provided at Spending Review 2025. This means that the Welsh Government’s settlement continues to grow in real terms between 2024-25 and 2028-29.
The Welsh Government are free to allocate Barnett consequentials as they see fit across their devolved priorities
Where policy changes will take effect in years beyond the existing Spending Review 2025 period, the Barnett formula will apply when departmental budgets change at the next Spending Review.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, to publish a breakdown of the spending decisions in England that generated the £508 million of Barnett consequentials for Wales at the 2025 Autumn Budget.
Answered by James Murray - Chief Secretary to the Treasury
As a result of decisions at Budget 2025, the Welsh Government will receive an additional £320 million RDEL and £185m CDEL through the operation of the Barnett formula on top of the record settlement provided at Spending Review 2025. This means that the Welsh Government’s settlement continues to grow in real terms between 2024-25 and 2028-29.
The Welsh Government are free to allocate Barnett consequentials as they see fit across their devolved priorities
Where policy changes will take effect in years beyond the existing Spending Review 2025 period, the Barnett formula will apply when departmental budgets change at the next Spending Review.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will publish the Treasury’s analysis of how far the uplifts to Welsh Government borrowing and reserve limits restore the real-terms value of those limits since they were set a decade ago.
Answered by James Murray - Chief Secretary to the Treasury
As announced at Autumn Budget 2025 there will be a 10% increase to annual and cumulative capital borrowing limits and the Wales Reserve overall and annual drawdown limits in 2026-27 which will increase the real value of the Welsh Government’s budget management tools.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether the proposed high-value property surcharge in England will generate Barnett-related consequentials for devolved administrations.
Answered by James Murray - Chief Secretary to the Treasury
There were no changes to UK Government DEL budgets as a result of the High Value Council Tax Surcharge so this policy did not result in Barnett consequentials.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions she has had with the Welsh Government on the impact of the income tax threshold freeze on Welsh Rates of Income Tax revenues.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028
As agreed between the UK and Welsh Governments, under the existing fiscal framework, the Welsh Government is responsible for 10p in income tax rates, whilst income tax thresholds in Wales remain reserved to the UK Government.
The UK Government has regular discussions with the Welsh Government on their fiscal framework, including the impact of UK Government tax policy changes.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate she has made of the number of Welsh taxpayers who will be brought into (a) paying income tax, (b) the higher rate band and (c) the additional rate band as a result of the threshold freeze to 2030–31.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if she will make an estimate of the number of people in Wales that would be moved into higher rates of tax as a result of freezing of tax thresholds by 2030.
Answered by Dan Tomlinson - Exchequer Secretary (HM Treasury)
The previous Government made the decision to maintain income tax thresholds at their current levels from April 2021 until April 2028.
The number of people forecast to pay tax by marginal rate can be found in Table 3.19 in the OBR’s November 2025 Economic and fiscal outlook – detailed forecast tables: receipts, linked below:
Asked by: David Chadwick (Liberal Democrat - Brecon, Radnor and Cwm Tawe)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, how much funding her Department plans to provide through the National Wealth Fund for steel projects; and how businesses can access that funding.
Answered by James Murray - Chief Secretary to the Treasury
This Government has a vision for a strong, resilient, productive steel industry in the UK that is primed for long-term success, driving growth in communities. The NWF will commit at least £5.8 billion over this Parliament to priority sub-sectors, which includes green steel. Businesses seeking the NWF’s finance or support from should contact them directly via their website:
https://www.nationalwealthfund.org.uk/contact-us