Andy Burnham has no intention of reforming the main way the Welsh government is funded if he becomes prime minister, BBC Wales has been told — dashing Plaid Cymru hopes before he has even entered Downing Street.
The new Labour MP and sole contender to replace Sir Keir Starmer is expected to make a speech about devolution and the economy next week. His spokesperson said he would put Wales and Scotland "at the centre" of any government he runs. But when pressed on the Barnett formula, which determines the Welsh government's funding based on share of population, the answer was clear: no changes are planned.
“Andy Burnham rules out Barnett formula reform for Wales; Peter Kyle warns next PM must respect fiscal rules.”
The news came as a blow to Plaid Cymru First Minister Rhun ap Iorwerth, who had vowed earlier this week to "hold" Burnham to his previous words. In a book two years ago, Burnham said it was time to "tear up" current funding arrangements — comments that resurfaced in The National newspaper. But ap Iorwerth told BBC Wales it "was not a great start even before he starts in the job", adding that it did not give him "an awful lot of confidence" and that Burnham should not "duck out of" dealing with funding. He repeated calls for more powers over borrowing, taxation, rail, policing, justice and the Crown Estate, and noted the two men are yet to speak — something that would need to happen "very soon" if Burnham takes over.
The Barnett formula has long been criticised for underfunding Wales, despite Wales receiving more per head than England, because of its older and more infirm population. Even Welsh Labour backs reform: less than a year ago its conference passed a motion calling for overhaul, a call rejected two months later by Chancellor Rachel Reeves.
Meanwhile, the UK's new trade deal with India comes into effect next month — a welcome distraction for a government still in office but waiting for its next leader. Yet Business Secretary Peter Kyle warned that any new course must still respect the current fiscal rules. Speaking exclusively to Channel 4 News, he insisted that is what the business community wants.
Burnham now faces the challenge of reconciling his devolutionary ambitions with the fiscal constraints set by his own party — a tension that is likely to define his early premiership if he succeeds.