Burnham's Position on Wales Funding
Andy Burnham, the new Labour MP and sole contender to replace Sir Keir Starmer as prime minister, has indicated he does not intend to reform the primary funding mechanism for the Welsh government if he assumes office, according to BBC Wales.
Burnham is anticipated to deliver a speech next week addressing devolution and the economy. A spokesperson stated that he would place Wales and Scotland "at the centre" of any government he leads.
Context of Previous Comments
Comments made by Burnham two years ago in a book, where he advocated for "tearing up" the existing funding arrangements, have recently resurfaced in The National newspaper.
Plaid Cymru First Minister Rhun ap Iorwerth described this as
"not a great start". On Wednesday, Plaid Cymru committed to "holding" Burnham accountable to his earlier statements.
However, these expectations appear to be unmet even before Burnham has assumed office at Downing Street.
Barnett Formula and Funding Plans
BBC Wales has been informed that Burnham's plans do not include alterations to the Barnett formula, which determines funding for Wales and Scotland.
His spokesperson emphasized:
"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."
Reactions from Welsh Leadership
In response, Rhun ap Iorwerth commented:
"This is not a great start even before he starts in the job.
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.
There are real issues that we are facing in Wales, and I am hoping that Andy Burnham's experience of working in a devolved context in Manchester would help him to understand what those issues are."
Ap Iorwerth further urged Burnham not to avoid addressing funding concerns and reiterated calls for enhanced powers over borrowing and taxation for the Welsh government, alongside devolution of rail, policing, justice, and the Crown Estate.
He noted that the two have yet to communicate but stated such discussions would need to occur "very soon" if Burnham assumes the premiership.
Understanding the Barnett Formula
The Barnett formula calculates additional UK government funding for Wales, largely based on population share.
Critics argue it underfunds Wales despite the nation receiving more funding per capita than England, citing Wales's relatively older and more infirm population.
Welsh Labour also supports reforming the funding formula. Less than a year ago, the Welsh Labour conference passed a motion advocating reform, a proposal rejected two months later by Chancellor Rachel Reeves.
The last significant assessment of Wales' needs was conducted by economist Gerry Holtham in 2010.
Burnham's Previous Work on Funding and Inequality
In 2024, Burnham co-authored a book with Steve Rotheram, his Liverpool counterpart, outlining strategies to address inequality and reform public money distribution.
They proposed a
"new formula covering the whole of the UK and including the English regions as separate entities"with funding allocated based on social factors and levels of need.
The book metaphorically compared the UK to a "rambling stately home" with power unevenly distributed:
"He likened the 'main living room' where the lights worked well to Greater London, said that Scotland was the main bedroom where the 'lights flicker' and that: 'down end of the landing, there are two smaller bedrooms where the lights work but are much dimmer. I think you know where this is going – they are Wales and Northern Ireland'."
They also suggested abolishing the Treasury's "Green Book," the official UK government spending guidelines, which critics claim favor investment in the south east of England to the detriment of Wales and English regions.
Burnham's Past Statements on Wales Funding
During his 2015 Labour leadership campaign, Burnham acknowledged awareness of Wales receiving an unfairly low share of UK spending during his tenure as a Treasury minister eight years prior.
"I believe Wales has been short-changed and as leader I would take steps to correct that."
He stated he was unable to change government policy at the time.
Current Political Context
Burnham recently returned to the House of Commons after winning the Makerfield by-election last week and remains the only candidate to succeed Sir Keir Starmer, who announced his resignation on Monday.
If no other challengers emerge, Burnham could become prime minister as early as 17 July.
UK Government and Local Reactions
The UK government's Wales Office minister, Bangor Aberconwy MP Claire Hughes, was asked on BBC Radio Wales Breakfast about the implications of a Burnham premiership for Wales.
She described it as "early days" but expressed "genuine excitement" regarding reports in the Financial Times about plans to relocate some of the Number 10 operation to Manchester.
However, she emphasized that it is "up to Andy Burnham to set out his policy platform and his thoughts around devolution for Wales when, [and] if, he becomes prime minister."
