§ Mr. TimmsTo ask the Chancellor of the Exchequer what arrangements will be made for determining changes to the budgets of the Scottish Parliament and National Assembly for Wales under devolution; and if he will make a statement. [20062]
§ Mr. DarlingThe Government set out their position on the funding of the budgets for the Scottish Parliament and National Assembly for Wales in the White Papers published in July (Cm 3658 and Cm 3718). The key to these arrangements is block budgets which the devolved Administrations, like the Secretaries of State now, will be free to deploy between the functions under their control in response to local priorities. Changes in these block budgets will be linked to changes in equivalent English spending plans by the Barnett formula which gives Scotland and Wales a population-based share of planned changes in comparable spending in England.
In order to help inform debate about these arrangements during the passage of the Scotland and Wales Bills, the Government published yesterday a statement of the principles which govern the existing block/formula arrangements and which will continue to do so under devolution. A copy of the statement is appended. Copies were placed yesterday in the Libraries of both Houses and referred to by my right hon. Friend the Secretary of State for Wales when he opened the Second Reading debate on the Government of Wales Bill.
Although the block and formula arrangements have operated for nearly 20 years, this is the first time that these principles have been spelt out in public.