Wales: Council Tax Debate

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Department: Wales Office
Thursday 27th October 2011

(12 years, 7 months ago)

Lords Chamber
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Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, I can readily understand where my noble friend is coming from in asking that question. The consequentials were made available because of the funding made available in England to freeze the council tax to help hard-pressed families. Indeed, many Welsh families might wonder why they are the only households in Great Britain that will not be having their council tax frozen. But the essence of devolution in the Acts that were passed by this Parliament in devolving power to Wales, including power over local government finance, means that it must be a matter for the Welsh Ministers and for the Welsh Assembly to determine what their priorities are. Importantly, Welsh Ministers will be accountable to the Welsh Assembly for their spending decisions and through the Assembly to the people of Wales. That is where the proper accountability should lie.

Lord Wigley Portrait Lord Wigley
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My Lords, does the Minister not agree that while the Barnett formula may have been fairly generous to Scotland, it has been shown to be some £300 million light in Wales in meeting the level of expenditure to keep services up to the same standard as in other parts of these islands? Given that, is it not totally reasonable that the Welsh Government should use these resources to spend on health and education, which are very much in need of further resources in Wales?

Lord Wallace of Tankerness Portrait Lord Wallace of Tankerness
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My Lords, as I made clear in answer to my noble friend on the consequentials and the block grant given to the Welsh Government, it is a matter for the Government there to determine their priorities and to be accountable for these priorities. If they choose to spend it on health and education, they will clearly be accountable for that expenditure. Separate bilateral discussions are continuing between the UK Government and the Welsh Government on all proposals arising from the Holtham commission, including the idea of a funding floor and the commission’s wider proposals for reform.