Funding deal announced

The UK and Welsh Governments say they've reached a deal to stop further cuts in Wales' share of public spending. They've also agreed in principle that the Welsh Government should have borrowing powers.

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  1. Nick Powell

Former cabinet colleagues clash over deal with Treasury

Finance Minister Jane Hutt received broad support from Conservatives and Liberal Democrats when she spoke in the Senedd about today's announcement of the Welsh Government's deal with the Treasury on funding and borrowing. But the former Deputy First Minister, Ieuan Wyn Jones was highly critical.

I can't join in this love-in. This is an awful deal. The Treasury have taken you to the cleaners

– Plaid Cymru Finance spokesperson Ieuan Wyn Jones AM

I have to ask -would you have got the Treasury on side? Get real, come on board.

– Finance Minister Jane Hutt AM

Today's statement from the two governments says a new funding settlement to replace the 30 year old Barnett formula is 'an essential precondition for any significant devolution of taxes' but that any borrowing powers will be subject to there being tax -or other- revenue to repay the loans.

Mr Jones claimed that the Welsh Government had failed to secure a key objective set out by the First Minister, that borrowing powers and tax raising powers would not be linked. Earlier, Ms Hutt had confirmed that discussions on paying for improvements to the M4 are 'at the top of the agenda'.

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