"Brown's Budget Must Bite The Bullet On Barnett" - Öpik

9.00.00am UTC (GMT +0000) Mon 20th Mar 2006

Wales is missing out on vital money for public services

Lembit Öpik, MP for Montgomeryshire and Leader of the Welsh Liberal Democrats, has called on Gordon Brown to use his budget on Wednesday to radically reform the way Wales is funded.

Lembit said the Chancellor should scrap the Barnett Formula which dictates the size of the Welsh block grant, and establish a new funding mechanism for Wales.

Lembit said: "If Gordon Brown really believes in social justice, why is he short-changing Wales in such a major way?

"Eight years after Labour came to power promising a fairer Britain, the Chancellor still hasn't lifted a finger to change this grossly unfair funding system.

"The Barnett formula calculates how much money Wales should get by doing a rough headcount. It takes no account of people's needs. Barnett basically treats the millionaire and the miner in the same way. It's like giving the same amount of money to Mayfair and Merthyr Tydfill.

"Wales has a high demand for its public services. Because of its geography and demography, public services here are more expensive to provide than in other parts of the UK. In short, Wales has greater needs, and these needs will continue being ignored and neglected as long as the Government keeps using the Barnett formula.

"The shortfall caused by Barnett could be used for vital services, but instead of getting extra doctors, teachers and nurses, Wales is missing out because the Chancellor has been too timid to tackle this fundamental issue.

"Even Joel Barnett, the man who created the Barnett Formula in the 1970s, thinks it is now outdated and should be killed off. In 2007 a comprehensive spending review will take place. This is the perfect time to review our funding system and put something fairer and better in place.

"Gordon Brown must bite the bullet and use his budget this week to give Wales the fair funding system it needs and deserves."