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