Welsh Labour finance spokesperson Huw Thomas has backed a review of the Barnett formula and greater flexibility over the Welsh Government’s finances, urging negotiations across all four UK nations after the Senedd supported a cross-party fiscal reform motion.
Speaking in the Senedd on 6 October, Thomas said Labour wanted a funding system based on need that worked for every part of the United Kingdom.
Agreement across four nations
He argued that any replacement for the current formula would require negotiation and agreement among all four UK nations, with the Welsh Government making the case for change.
Thomas also supported making permanent the additional flexibility Wales has secured over the use of reserves. He said Welsh Labour would continue to press for needs-based funding and greater fiscal freedom.
What the Senedd backed
The cross-party motion called for a review of the operation of the Barnett formula to improve fairness and transparency, removal of restrictions on the Wales Reserve and delivery of a £14 billion commitment for Welsh rail infrastructure.
Members backed the motion. The vote is a political instruction rather than an immediate change to the funding formula, which would require agreement and action beyond the Senedd.
