Heledd Fychan Canol De Cymru - South Wales Central

Mark Drakeford has today confirmed that the UK Treasury will apply the Barnett formula to calculate Wales’ share of funding to shield public sector institutions from Labour’s National Insurance rises.

Plaid Cymru says this will leave Welsh public services facing a financial black hole.

Wales has a larger percentage of public sector workers, compared to England and the rest of the UK.

Labour Finance Cabinet Secretary Mark Drakeford said in the Senedd that the Welsh Government “are now as much as £65 million short” on the funding needed to shield the public sector from the tax rises.

Heledd Fychan MS highlighted said this was yet another example of how Wales is deprived of fairness due to the out-dated funding formula.

She called for ‘urgent clarity’ from Labour in Wales on what impact the ‘disastrous decision’  would have on bodies providing essential services in Wales.

 Plaid Cymru finance spokesperson, Heledd Fychan said:

 “Wales is facing a £65 million black hole in our public services’ finances thanks to Labour's NIC rise.

 “This is yet another example, if we needed one, of the "fundamental unfairness" of the funding formula and how Westminster - and Labour - take Wales for granted.

 "England is granted full reimbursement for NICs increases, Wales is not. This is a damning indictment of this so called ‘partnership in power’, as Labour in Wales clearly have zero influence on the whims of their London bosses.

 “Plaid Cymru demands urgent clarity from the Welsh Government as to what impact yet another disastrous decision by Labour will have on those bodies that provide essential services in Wales.”