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First Minister funding review leads to row
First Minister and Labour leader in Wales, Baroness Eluned Morgan, delivers a keynote speech marking one year to the 2026 Senedd election, at the Norwegian Church in Cardiff, May 6, 2025

FIRST Minister Eluned Morgan called for funding reform today following Chancellor Rachel Reeves’s spending review last week, with the First Minister telling the BBC she does not want to “continue to go cap in hand” to Westminster.

But despite calling for an overhaul of the funding system known as the block grant, Ms Morgan did not say if this was something Westminster, from which the Welsh government receives most of its funding, is considering.

The Chancellor defended her spending plans for Wales, saying she had delivered what the Welsh government had asked for.

But opposition parties say the Welsh Labour government had not put forward spending plans on infrastructure projects, unlike the other devolved nations and regional mayors in England.

Plaid Cymru leader Rhun ap Iorwerth used today’s First Minister’s Questions (FMQs) to welcome the support of a funding review, but said Wales wasn’t receiving additional funding because “you didn’t ask for it.”

Finance Secretary Mark Drakeford had told Westminster there were no projects ready receive funding, the Plaid leader said, before arguing that “without a fundamental review of how Wales is funded, we will continue to see Wales shortchanged.”

The block grant’s size is determined by the Barnett formula, based on how much the British government spends on devolved issues such as health and education in England.

Opposition parties are also criticising the Welsh government for accepting a Westminster decision to administer the latest post-Brexit compensation for Wales.

European Union funds were administered by the Welsh government, but, after Brexit, the Conservative government in Westminster retained those powers.

At the time, then first minister Mr Drakeford told the Morning Star that his government would fight for those funds to be administered by Wales and vowed not to accept a penny less than the EU had spent in the country.

Mr Drakeford said the decision by then prime minister Boris Johnson’s government was proof of the disrespect Westminster has for Wales.

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