Wales could suffer from Barnett reform, warns Murphy

Mar 27 2008 by Tomos Livingstone, Western Mail

CAMPAIGNERS for changes in the way Wales is funded from the Treasury should be “careful” of the consequences of reform, Welsh Secretary Paul Murphy said yesterday.

A shake-up of the Barnett formula, which distributes money to Scotland, Wales and Northern Ireland on the basis of population, is an oft-heard demand of Plaid Cymru and the Liberal Democrats.

The system is widely seen to short-change Wales, although public spending per head is £1,000 a year higher than in England.

Many English MPs, particularly in the north-east of England, are now calling for changes, although the even- higher spending levels in Scotland tend to be the focus of attention.

Mr Murphy told Welsh MPs yesterday, “We have to be careful with Barnett, because it could mean we are worse off than we are at the moment.

“Wales gets around £7,000 per head in spending compared with just over £6,000 in England, as an average. Whether our English colleagues would be prepared to accept that [in future] is another matter.”

A committee is being set up in the Assembly to examine the way the formula operates.