Barnett Formula

Funding deal can end threat of the “Barnett Squeeze”

The UK Government and the Welsh Government are currently discussing the future of a ‘funding floor’ for Wales, designed to protect the relative level of government spending per head in Wales. A new report by researchers from Cardiff University’s Wales Governance Centre and the Institute for Fiscal Studies assesses three options for the floor, and considers how such a floor might interact with the Welsh block grant after taxes are devolved to Wales from April 2018.

The government’s detailed proposals for introducing English Votes for English Laws (EVEL) into the House of Commons are a significant moment in our constitutional history, say Michael Kenny and Daniel Gover, but there is good reason to think that EVEL is unlikely to represent a sufficient answer to the English question.
 
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Wales has been squeezed harder than Scotland under the Barnett Formula. The challenge now facing First Minister Carwyn Jones is to explain to the Welsh electorate why it is fair that poorer Wales receives less privileged treatment that that given to more prosperous Scotland, writes Richard Wyn Jones.

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