Wales asks for funding reform and delivery of £14bn rail pledge

Wales is asking UK finance ministers to review how its funding settlement works, give the Welsh Government more room to borrow and hold reserves, and change the Barnett formula.

Cabinet Minister for Finance Elin Jones is taking the requests to a meeting in Cardiff of the Finance Inter-ministerial Standing Committee. The committee brings together finance ministers from the UK Government, Wales, Scotland and Northern Ireland.

A review of the 2016 funding framework

The Welsh Government has formally proposed a joint review of the 2016 Wales Fiscal Framework. That framework covers Wales's tax powers and fiscal tools, including borrowing. Jones is also seeking more flexibility over reserves so money can be planned and carried across spending periods more easily.

Reform of the Barnett formula is another Welsh priority. The formula is used to calculate changes in funding for devolved public services when UK Government spending in England changes. The announcement says the system should better reflect need, but does not set out a replacement formula.

Rail, living costs and capital spending

Welsh ministers will press for delivery of what the announcement describes as a £14 billion UK Government commitment to rail investment in Wales. The Welsh Government also wants further UK-wide cost-of-living support and more capital spending for Wales in the Autumn Budget, including investment in hospitals and affordable housing.

Funding for coal-tip restoration and contaminated-land remediation is also on the list. Jones is due to discuss Wales-specific issues in a separate meeting with the Chief Secretary to the Treasury.

What has and has not been agreed

These are the Welsh Government's negotiating priorities. The announcement does not record an agreement by UK ministers, a timetable for a Fiscal Framework review or an outcome from the Cardiff meeting. It also contains no response from the other governments attending.