Covid: UK ministers criticised over Welsh funding claims
- Published
The UK Government has been criticised for announcing Wales would get £227m in "additional funding" on Tuesday.
The funding is part of £5.2bn already guaranteed since the beginning of the pandemic as a result of extra spending in England, and is not new cash.
Labour Rhondda MP Chris Bryant said there was not a "single extra penny for Wales".
Conservative Welsh Secretary Simon Hart responded he was "sorry" if this was not clear.
On Tuesday the Chancellor Rishi Sunak announced new funding to support business grants in England.
The Treasury said, as part of the announcement, the devolved administrations would receive "additional funding" as a result of these announcements - £375m for the Scottish Government, £227m for the Welsh Government and £127m for the Northern Ireland Executive.
Wales minister David TC Davies tweeted on Tuesday: "This announcement from the Chancellor means an extra £227m in funding for Wales."
But it was later clarified that the £227m for Wales was part of the £5.2bn extra funding already guaranteed for Wales as part of the latest funding top-up announced on 23 December.
Business support is devolved and typically the devolved governments receive proportional extra funding from the Treasury as a result of additional spending on devolved areas in England - which they can spend as they choose.
But during the pandemic most additional funding has been given upfront in lump sums rather than in response to individual spending announcements in England.
The £227 million is part of the £5.2 billion given by UKG to WG to help with Covid. This is “up front” unlike how Barnett normally works. Sorry if that wasn’t clear. Perhaps you could now ask WG why over a billion of that remains unallocated at a time business really needs it?
— Simon Hart (@Simonhartmp) January 5, 2021
Welsh Finance Minister Rebecca Evans MS said on Twitter: "This funding is part of our existing Covid funding guarantee and is not new money."
Scottish Finance Secretary Kate Forbes said: "We are both surprised and disappointed that the UK Government's announcement of additional funding for businesses in England will not - despite the initial indications - generate further new funding for the Scottish Government or other devolved administrations."
Labour Rhondda MP Chris Bryant said: "There isn't a single extra penny for Wales today to fund similar measures for Welsh businesses as apply in England."
The UK Government's Welsh Secretary Simon Hart responded to Mr Bryant on Twitter: "The £227 million is part of the £5.2 billion given by [UK Government] to [Welsh Government] to help with Covid. This is 'up-front' unlike how Barnett normally works.
"Sorry if that wasn't clear. Perhaps you could now ask WG why over a billion of that remains unallocated at a time business really needs it?"
What has the Treasury said?
The Treasury said the money referred to additional funding being provided to the devolved administrations as part of the upfront Barnett formula guarantee.
They said the total amount of extra funding given to the devolved governments since the start of the pandemic was increased by £800m to a total of £16.8bn on 24 December.
And they added this figure was likely to increase shortly to take into account any further expected increases in support in England.