Andy Burnham Does Not Plan to Reform Wales' Funding Formula as PM

Andy Burnham, sole Labour leadership candidate, does not plan to reform Wales' funding formula if elected PM, despite past calls and Plaid Cymru's demands to address funding inequalities.

Andy Burnham Remains Sole Labour Leadership Candidate

To date, Andy Burnham is the only candidate for the Labour leadership.

The BBC has learned that Andy Burnham has no intention of reforming the primary funding method for the Welsh Government if he becomes Prime Minister.

He is expected to deliver a speech on devolution and the economy next week, with a spokesperson stating he would place Wales "at the heart" of any government he leads.

Two years ago, Burnham stated in a book that it was time to "tear up" the current funding arrangements.

This prompted Plaid Cymru—who have long argued for a revamp—to promise to "hold him to his words," but it now appears reform is ruled out.

Calls to Address Wales' Longstanding Funding Shortfall

Liz Saville Roberts, leader of Plaid Cymru in the House of Commons, said:

"In his book, Andy Burnham called for a 'new arrangement that is fair to everyone'.

Any reform he undertakes to ensure fairer funding for northern English regions must also address Wales' longstanding funding shortfall."

However, Plaid Cymru's hopes seem to have been dashed even before Burnham reaches Downing Street.

BBC Cymru has been told the plans will not include changes to the Barnett formula for Wales and Scotland.

'Devolving Power Away from Westminster'

A spokesperson said:

"Andy has spent his entire political career fighting for the nations and regions of the United Kingdom – he will place Wales and Scotland at the heart of any government he leads, pushing power down and out of Westminster and Whitehall in a radical way."

The Welsh Government has been asked for a response.

Understanding the Barnett Formula

The Barnett formula determines the level of public spending in Wales, Northern Ireland, and Scotland by allocating funds based on population size and devolved powers.

The amount of money depends on whether the UK Government increases or decreases funding for departments covering devolved areas such as health and education.

Critics have long argued it underfunds Wales, despite Wales receiving more funding per capita than England, due to Wales' relatively older and generally less healthy population.

Labour in Wales also supports revamping the funding formula.

Less than a year ago, the Welsh Labour conference passed a motion calling for reform of the formula—a call rejected two weeks later by Chancellor Rachel Reeves.

Origins and Assessments of the Formula

The formula was named after the Treasury's Chief Secretary in the 1970s, the late Joel Barnett, who devised it.

The last major assessment of Wales' needs was conducted by economist Gerry Holtham in 2010.

Burnham's Regional Funding Proposals

While Mayor of Manchester, Burnham co-authored a 2024 book with Liverpool Mayor Steve Rotheram outlining how they would address inequality and revamp public funding distribution.

They stated the need for "a new formula covering the entire UK and including English regions as separate entities," with funding "allocated to regions and nations based on social factors and levels of need."

The book compared the UK to a "mansion block" where power was concentrated in a few rooms.

They likened the "large living room" with working lights to London, the "large bedroom" with flickering lights to Scotland, and "down the landing, two smaller bedrooms where the lights work but have dimmed" to Wales and Northern Ireland.

They concluded: