In the wake of yesterday’s statement by Jim Murphy on Scotland, Peter Hain, determined not to be outdone, today announced, with considerable fanfare and flourish, that he had secured from the Treasury a commitment that Wales would receive a “fairer funding agreement” than that provided by the Barnett formula:
The new arrangements are as follows:
- the Government agrees that the Barnett formula could lead to convergence to an extent that would be regarded as unacceptable although further convergence is not currently expected in the coming years;
- the Government will make a full assessment of the extent of convergence with consideration of Wales’s position relative to other parts of the United Kingdom as part of each spending review; and
- following this assessment the Government would be prepared to take action if appropriate to ensure Wales is not disproportionately disadvantaged.
Now call me a troublesome old nit-picker, but the “new arrangements” are nothing of the sort. All that Peter has announced in reality is that at the time of the next spending review the Government will think about whether or not Wales is disadvantaged and then may, just may, take some unspecified action.
Or not.
Peter Hain is clearly a man who knows how to drive a hard bargain.
