Calls for UK Treasury and Senedd to improve relations

A Senedd Committee is calling for a cultural shift in relations between the Senedd in Wales and UK parliament to stop the undermining of the Welsh Government by the UK Treasury.

Peredur Owen Griffiths MS, chair of the finance committee, said, “Too often, politicians in London seem to pretend that devolution doesn’t exist, showing a disregard to the devolved institutions when making spending announcements.  

Too often, politicians in London seem to pretend that devolution doesn’t exist, he said. (Image: File) “Today’s report shows that the relationship between the UK Government and the Welsh Government is strained and often ineffective – but there is hope for the future. 

“The Committee is calling for maturity between the Welsh and UK governments. Informing the devolved governments about spending announcements that affect them should be built into the system, not just up to individual ministers. 

“We’re hoping a new government in London will take the issues raised by this report seriously and reset the relationship to make sure that devolution is respected.” 

The report calls for transparency with future funding announcements and make clear if cash provided to Wales really is “new money” and not funding which has already been previously announced.  

E.g. the High Speed 2 railway between London and Birmingham is allegedly being treated as an England and Wales project, which means Wales isn’t eligible for extra cash. 

The committee is calling for the Welsh Government to have a greater role in the categorisation of big projects like this to avoid the Treasury making subjective calls on decisions that have a significant impact on funding levels in Wales. 

What is devolution?

There has been a devolved parliament in Wales since 1998.

Devolution is the decentralisation of governmental power. Examples of devolution are the powers granted to the Scottish Parliament, the National Assembly for Wales, the Northern Ireland Assembly and to the Greater London and Local Authorities.

A Senedd Committee is calling for a shift in the relationship between the UK and Welsh governments to ensure greater respect for devolution.

The demand for the cultural shift is in response to a ‘lack of mutual respect and parity of esteem’ experienced by the devolved institutions in Wales when trying to engage with the previous UK Government on financial matters. 

In a recent report, the Finance Committee highlighted the need for improved communication and mutual respect, following concerns about how the UK Treasury engages with devolved administrations.

Since the committee began the inquiry, a new UK Government has been elected and there have been numerous changes within the Welsh Government.  

The committee is calling for both sides to take this opportunity to reset their relationship and make sure that processes are put in place to improve long-term communication.