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Government of Wales Bill

: I am disappointed to hear the hon. Member for Chesham and Amersham (Mrs. Gillan)—who has been gracious, as ever—say that, unfortunately, the Conservatives will not support the new clause, despite the spirit of revisionism that seems to be blowing through their party as we speak. This is an opportunity for us to raise the hugely important question of the Barnett formula, which is a non-statutory formula. Indeed, this is one of the few opportunities that we have had in recent years to force a vote on this issue, which, notwithstanding law-making powers and the various other important matters that we have been discussing, is probably the single most important determinant of the Assembly’s and the Assembly Government’s ability to improve the lives of the people of Wales. The Barnett formula is a convergent formula: over time, it results in a fall in the relative position of public expenditure per capita in Wales, compared with England. For example, only six years ago—in 1999–2000—the public expenditure per capita index figure for devolved services in Wales was 115. Now, it has fallen to 112, which is a very significant relative fall over that period. That process will continue until we reach the point at which Wales and England are exactly the same, even though there is no guarantee that the level of need in Wales and England—the economic and social position—will be identical. That is why we must support the principle of a needs-based formula.