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 even before he enters Downing Street.
The new Labour MP is expected to make a speech about devolution and the economy next week, with a spokesperson saying he would put Wales and Scotland "at the centre" of any government he runs. But BBC Wales has been told that the plans would not include changes to the Barnett formula, the mechanism that determines the amount of cash the Welsh government receives based mainly on share of population.
“Andy Burnham has no plan to reform Wales' funding system if PM, disappointing Plaid Cymru.”
Comments by Burnham in a book two years ago — in which he said it was time to "tear up" current funding arrangements — had resurfaced this week in The National newspaper, leading Plaid Cymru to vow on Wednesday to "hold" Burnham to his previous words. On Thursday, Plaid Cymru First Minister Rhun ap Iorwerth said it "was not a great start."
"This is not a great start even before he starts in the job," ap Iorwerth said. "It does not give me an awful lot of confidence in seeing something that is rather important to Wales being somehow cast aside before Andy Burnham even gets the chance to become prime minister." He added that Burnham should not "duck out of" dealing with funding and repeated his calls for more powers over borrowing, taxation, rail, policing, justice and the Crown Estate.
Less than a year ago the Welsh Labour conference passed a motion calling for reform, a call rejected two months later by Chancellor Rachel Reeves. Critics have long argued the Barnett formula underfunds Wales, despite Wales receiving more funding per head than England, because the Welsh population is relatively older and more infirm.
Burnham's spokesperson said: "Andy has spent his whole political career fighting for the nations and regions of the United Kingdom – he will put Wales at the centre of any government he runs, radically pushing power down and out of Westminster and Whitehall."
Meanwhile, 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's what the business community wants.
Former foreign secretary David Miliband, meanwhile, hailed Burnham's "openness and energy" — though he ignored a question over whether he was interested in a return to government if Burnham becomes prime minister.
Ap Iorwerth said the two men are yet to speak, but that it would need to happen "very soon" if Burnham takes over in Downing Street.