Senedd Committee accuses UK Treasury of undermining devolution

Emily Price

A Senedd Committee is calling for a cultural shift in relations between Cardiff and London to stop the undermining of the Welsh Government by the UK Treasury.

The demand is in response to what the Committee described as a "lack of mutual respect and parity of esteem" experienced by the devolved institutions in Wales when trying to engage with the previous Conservative UK Government on financial matters.

The report published today (October 14) found that the "whims or personalities" of Treasury ministers has been the overriding factor when it comes to communication between London and Cardiff.

Since the Committee started their probe, a new Labour UK Government has been elected and there have been numerous changes within the Welsh Government.

The Committee is now calling for both sides to take this opportunity to reset the relationship between administrations and ensure that processes are put in place to improve long-term communication.

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HS2

Since the General Election, Labour at both ends of the M4 have insisted the relationship between both governments has been adjusted.

But the report has urged the UK Government to be more transparent with future funding announcements and make clear if cash provided to Wales is "new money" and not funding which has already been previously announced.

The Committee has highlighted the issue of the HS2 rail link which was classified an England and Wales project despite it not crossing the border.

It's classification by the Conservatives meant Wales wasn't eligible for extra cash despite Scotland and Northern Ireland both receiving proportional funding.

The Committee is calling for the Welsh Government to have a greater role in the categorisation of big projects like HS2 to avoid the Treasury making subjective calls on decisions that have a significant impact on funding levels in Wales.

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Impact

The Committee is also demanding that the dates of UK spending announcements are published in advance to enable the Welsh Government to plan its budget more effectively and to allow more time for the Senedd to scrutinise such decisions.

The report found that funding decisions by the UK Treasury undermine inter-governmental relations by treating the Welsh Government like another UK Government department rather than a devolved government.

Committee members say that the ‘Finance Interministerial Standing Committee’, which brings together the governments of the UK, Wales, Scotland and Northern Ireland, should be used to share financial information to the devolved governments in advance of spending announcements.

The Senedd Finance Committee also said it was frustrated with the "lack of engagement" from the UK Treasury.

Members said that because budgetary decisions in the UK and Wales are closely linked the refusal of Treasury ministers to appear before the Committee hampered its work.

The report called for new Labour ministers to "show more respect" and engage with the Senedd in the "spirit of openness and transparency".

'Disregard'

Peredur Owen Griffiths MS, Chair of the Finance Committee, said: "Too often, politicians in London seem to pretend that devolution doesn’t exist, showing a disregard to the devolved institutions when making spending announcements.

"Today’s report shows that the relationship between the UK Government and the Welsh Government is strained and often ineffective – but there is hope for the future.

"The Committee is calling for maturity between the Welsh and UK governments. Informing the devolved governments about spending announcements that affect them should be built into the system, not just up to individual ministers.

"We’re hoping a new government in London will take the issues raised by this report seriously and reset the relationship to make sure that devolution is respected."

A Welsh Government spokesperson said: "Since the committee started this inquiry, a new UK Government has been elected which has provided a welcome re-set in relations between Wales and Westminster with two governments now working together on a shared vision for Wales’ future.

"We appreciate the committee’s support on many of the Welsh Government’s key areas of focus, and look forward to working alongside the new UK Government to take these forward.

"We thank the committee for its report and recommendations, which we will now consider in detail."