Assembly backs Welsh Lib Dem motion on financial powers review

12.00.00am BST (GMT +0100) Tue 19th Jun 2007

The Assembly today unanimously voted in favour of an independent investigation into the funding and financial powers of the Welsh Government.

The proposal, put forward by the Welsh Liberal Democrats, received backing from all parties in the chamber. The party used their inaugural debate in the new Assembly to take the first steps towards Wales getting a fair deal when it comes to UK government funding.

Since 1979, Wales has received an annual grant from Westminster calculated using the Barnett Formula. This was introduced as a temporary measure, based on population rather than need, and is widely believed to disadvantage Wales.

Speaking after the debate, Mike German Assembly leader of the Welsh Liberal Democrats said:

"This is a victory for common sense. Opponents of reforming the unfair way that Wales is funded often say that there is insufficient information for change.

"That is why it's so important that we have an independent commission to get the facts. That's why it's so important to have won today's vote.

"There has been a misplaced fear that Wales will lose out if the funding formula is changed. I don't believe in the politics that fears change. An independent commission with representatives of all political parties and wider society looking at the alternatives will provide the evidence for a better way of funding Wales and other parts of the UK.

"The Welsh Lib Dems support greater fiscal powers for Wales. There is much debate in Scotland and Northern Ireland on varying corporation tax and fiscal federalism. We want to see a commission looking into the advantages of the Assembly having greater tools to do the job of stimulating and improving the Welsh economy.

"I welcome the backing from all parties. This was a policy that we insisted on in negotiations for the All-Wales Accord. Labour are late to come to the idea of looking into Barnett and financial powers but their support is to be welcomed."