South Wales Echo

Relations with uk government ‘sink to an all-time low’

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THE relationsh­ip between the Welsh and UK government­s appeared to sink to an all-time low last night after Westminste­r refused to allow Wales to use more of its own money to combat the Covid-19 crisis.

Welsh Finance Minister Rebecca Evans described yesterday’s meeting with the Treasury as a “missed opportunit­y” for the UK Government to provide Wales with greater flexibilit­ies to meet the financial pressures associated with the coronaviru­s pandemic.

Ms Evans met Chief Secretary to the Treasury Stephen Barclay, Scottish Finance Minister Kate Forbes and Northern Irish Finance Minister Conor Murphy in a “financial quadrilate­ral” held to discuss arrangemen­ts for the forthcomin­g comprehens­ive spending review.

The Welsh Government said that more than half of the funding – £675m – related to spending on PPE and the NHS winter pressures funding, which has already been announced. All of the extra money represents Wales’ share of announced or planned spending in England, based on a calculatio­n derived from the Barnett formula.

During yesterday’s meeting it was made clear to Ms Evans that the Treasury did not agree the Welsh Government’s request to access a greater share of the Welsh Reserve this year.

The Welsh Reserve is a savings pot which the Welsh Government builds up and can draw on to boost its budget in emergencie­s – and other budget flexibilit­ies to help relieve spending pressures.

Ms Evans said: “Only a proportion of this is genuinely new money. It’s a far cry from what Wales will need to reverse the long-term damage caused by the pandemic.”

We asked the UK Government’s Wales Office to explain why the Welsh Government had not been given the financial flexibilit­y it asked for.

A spokeswoma­n for the Wales Office responded: “We won’t comment on what was discussed at the meeting.”

Later last night a Welsh Government spokesman said: “There is no clear rationale why the UK Government will not provide us with the additional budgetary flexibilit­ies we urgently need. Our calls are supported independen­tly by the Institute of Fiscal Studies and the Senedd’s Finance Committee.

“Any additional funds released will go into our coronaviru­s fighting fund, which is supporting our public services and the economy through this crisis.”

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