MSs clash over funding formula as Reform call for government to abandon plans

Senedd Members clashed over plans to review Wales’ funding formula, following the Welsh Government’s defeat in its pursuit of change.

Constitution minister Dafydd Trystan Davies defended the Welsh Government’s stance amid Reform calls for the plans to be abandoned.

On Tuesday July 14, Reform’s Cai Parry-Jones said Plaid Cymru had experienced a “crushing defeat” last week when they were “refused” permission from the Senedd to argue for a different funding model for Wales.

He said: “Reform, with the support of Labour and the Conservatives, potentially saved £1.5 billion annually for the Welsh Government’s budget. You’re welcome.

“Now that the Senedd has spoken, will you abandon your plans to argue for a change for the funding model for Wales?”

Responding with a simple “no”, Dr Trystan Davies said: “What has become very clear in assessing the financial situation facing Wales is that we need fair funding for Wales and funding that reflects the needs of the population. Wales has nothing to fear from a review of that kind.”

Reform’s shadow finance and government efficiency minister pointed to Plaid’s manifesto promises – much of which Mr Parry-Jones described having “hinged on an optimistic change of the funding model”.

He said: “Now that the Senedd has rejected your calls to change the funding model, what changes have you made to your programme for government?”

Dr Trystan Davies responded: “I hope that colleagues across this Senedd will work to ensure that the Welsh Government and the public sector in Wales work at their most effective and that we, over the next four years, can identify more funding that can be invested in the priorities of the people, to support childcare, to support the economy, to support the health service.”

“Huge concerns”

Huw Thomas – Labour’s spokesperson for finance and democracy – questioned the minister on Plaid’s funding formula review.

The former Cardiff Council leader revealed he had received a written response from local government minister Sian Gwenllian, who said that as part of the government’s funding formula review it is “reviewing the data on primary indicators” such as “those relating to deprivation and sparsity of population”.

Mr Thomas said there are “huge concerns” in parts of Wales that Plaid will “copy what Rishi Sunak did in England and redistribute funding via the funding formula away from poorer urban areas towards relatively wealthier rural ones.”

The Caerdydd Penarth MS asked the minister what issues he has identified in the “underlying data and indicators” that have prompted this review.

In response, Dr Trystan Davies said: “As with all official statistics, the government keeps a close eye on the accuracy and effectiveness of that data to ensure that they are clearly and accurately reflected in the formulas.

“The spokesperson himself [Mr Thomas] comes from Aberystwyth and he knows full well that there are areas of significant poverty in rural Wales as well as industrial Wales.”

He continued: “Setting those communities against each other is a disappointing approach from the spokesperson, I would suggest.”

Mr Thomas noted in response that he “didn’t hear” the minister share “what figures had pushed [him] to hold that review.”

“Little substance”

Calls for a Welsh Covid inquiry came from both the Reform and Conservative benches in Tuesday’s plenary.

Following his questions on Plaid Cymru’s plans to argue for a change to the funding model for Wales, Mr Parry-Jones pressed the minister to confirm what actions his government will take to bring about a Welsh Covid review.

He said: “Responding to the Covid inquiry’s fifth report today, the First Minister rather vaguely said that Plaid remains committed to reviewing the Wales Covid response.

“In March, Plaid said it would hold a short, sharp and focused review of the Welsh Government’s Covid response, a far cry from the full-fat all-Wales inquiry Plaid previously called for for years, including during your 2024 manifesto.

“Now, following that u-turn, nobody knows what your review actually is – not when it’s happening, not for how long, not even what elements of the Covid response it would focus on.

“Surely, Minister, now is the time to make it clear to bereaved families what actions exactly your government is going to take.”

Dr Trystan Davies said the government is committed to conducting a Covid review. He said: “That’s what we said in our manifesto and that’s what we intend to do.

“I’m pleased to say that I have already been in correspondence with the Covid Bereaved Families on our intentions and hope to arrange a meeting with them soon, because it’s important that the voices of those who have suffered are part of that discussion and feed in to the work of government.”

Andrew RT Davies, Welsh Conservative MS for Pen-y-Bont Bro Morgannwg, also pressed the minister on his inquiry plans.

Mr Davies said it was “vital” the government “sticks to their commitment” and “enacts a Covid inquiry – not a review”.

He called on the minister to confirm that “the government’s thinking, whatever emerges, will be set up under the Inquiries Act 2005, which would compel witnesses to come before that inquiry and give evidence”.

Dr Trystan Davies reiterated that work is “progressing” on the government’s Covid review and noted he will be “liaising closely” with the bereaved families.

The Conservative MS thanked the minister for his “warm words” but described the response as of “little substance”.

Mr Davies said: “The reality is that we found out, with the Covid committee that was set up in the previous Senedd term, that unless witnesses were compelled to give evidence, that committee was thwarted in its endeavours to get to the truth.

“Today, for example, the Covid inquiry reports that, on the FFP3 respirator masks that we were told Wales was well stocked with prior to the Covid pandemic in its emergency allocation, there wasn’t a single mask in Wales available for the health service to use.

“These are the things we need to get to the core of as to what was not provided, what was mislaid, what was deliberately not ordered to save money, and what was not acted on on the emergency planning trials that were held prior to the Covid pandemic.”

He called on the Welsh Government to “stick to your guns, stick to your morals, stick to the votes that you made prior to the Senedd election and have a full-blown inquiry that gets to the truth and, ultimately, prepares Wales for any future pandemic.”

Responding, Dr Trystan Davies said: “Reading the most recent module report on Covid brings home the sobering impact of Covid right across this country.

“Those lessons must be learnt, and the review that we are committed to undertaking must have the ability to address those precise issues that you have set out and that is what we will seek to do.”