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Barnett Formula Reform

Is this devolved to Wales?

Where is this happening?

From Senedd Research Service¹:

The Barnett formula is used to calculate how much budget the Welsh Government gets as a consequential of UK Government spending in devolved areas, and is also used to calculate the (Welsh) block grant.
It uses the annual change in a UK Government department’s budget and applies a comparability percentage based on the extent to which that department’s services are devolved, it also takes into account the relative population of Wales.
Wales also has a block grant floor², set at 115% to reflect Wales’ greater needs. This is designed so that Wales will receive at least 15% more funding per person than England. Currently, funding for Wales is around 20% higher per person than England, meaning the block grant floor has not yet been triggered. As a result, a temporary needs-based factor is set at 105%.

In simpler terms: if spending in a devolved policy area increases in England, Wales can usually expect to receive around 5% of that money as a budget top up (called a “Barnett consequential”), because Wales has around 5% of England’s population.

It has been argued, in Wales at least, that the Barnett formula is outdated. It doesn’t take into account the financial pressures of providing services in an older, more rural country with higher levels of poverty and difficult terrain.

This has led to calls for the formula to be reformed to a “needs-based” one which, on paper at least, could lead to Wales receiving more money (though this is never guaranteed).

Opponents of reforms to the formula have argued that Wales already receives more money per-head than equivalent regions in England and should focus on making better use of this money than asking for more.

On October 6th 2026, the Senedd (motion jointly tabled by Plaid Cymru and Labour) held a binding vote in government time calling for the Welsh & UK governments to work together to reform the Barnett formula, give the Welsh Government greater borrowing powers and commit to an announced £14 billion in spending for rail in frastructure projects in Wales. The vote was approved (more details towards the bottom of the page).

Who has raised this at the Senedd?

Rhun ap Iorwerth MS

First Minister

Elin Jones MS

Finance Minister

Lindsay Whittle MS

Chair: Standards

Kiera Marshall MS

Backbencher

Carrie Harper MS

Chair: Constitution & External Affairs

Alun Cox MS

Backbencher

John Davies MS

Backbencher

Sera Evans MS

Chair: Education & Young People

Elfed Williams MS

Backbencher

Dan Thomas MS

Backbencher

Ben McKenna MS

Shadow Health Minister

Cai Parry-Jones MS

Shadow Finance Minister

Iain McIntosh MS

Shadow Government Efficiency Minister

Paul Marr MS

Backbencher

Huw Thomas MS

Backbencher

Mike Hedges MS

Backbencher

Darren Millar MS

Conservative Group Leader

Andrew RT Davies MS

Senedd Commissioner

Sam Rowlands MS

Chair: Finance

Jane Dodds MS

Backbencher

Anthony Slaughter MS

Backbencher