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Labour would 'address under-funding', says Jones Labour would 'address under-funding', says Jones
(35 minutes later)
Labour will address "under-funding" of the Welsh government if it wins next year's general election, First Minister Carwyn Jones has assured AMs.Labour will address "under-funding" of the Welsh government if it wins next year's general election, First Minister Carwyn Jones has assured AMs.
The three main UK party leaders have pledged to keep the current funding system for the devolved governments.The three main UK party leaders have pledged to keep the current funding system for the devolved governments.
In a letter in a newspaper they promised to keep the Barnett formula if there is a Scottish no vote this week.In a letter in a newspaper they promised to keep the Barnett formula if there is a Scottish no vote this week.
But Mr Jones said Mr Miliband had "made it clear" he would deal with Wales' funding issue if he wins office.But Mr Jones said Mr Miliband had "made it clear" he would deal with Wales' funding issue if he wins office.
Under the current system, Scotland gets more spending per head than the UK average.Under the current system, Scotland gets more spending per head than the UK average.
Plaid Cymru leader Leanne Wood said the formula, which determines how public cash is distributed, is unfair to Wales. Plaid Cymru leader Leanne Wood said the formula would leave Wales £300m poorer each year and the first minister had "failed to win for Wales on funding reform".
Ms Wood, who is campaigning for a yes vote in Scotland, said the pledge by David Cameron, Ed Miliband and Nick Clegg would leave Wales £300m poorer each year.
She said a new formula, based on the genuine needs of Wales' population, could "unlock an additional £300 million a year for our public services".
Ms Wood added the first minister had simply "failed to win for Wales on funding reform".
But, answering questions in the Senedd, Mr Jones said: "Ed Miliband has made it clear, and this is something I agreed with him, Wales' under-funding will be addressed under a Labour government."But, answering questions in the Senedd, Mr Jones said: "Ed Miliband has made it clear, and this is something I agreed with him, Wales' under-funding will be addressed under a Labour government."
He said his own calls for a convention to address the UK constitution had been "ignored" by the UK government for two years, but had now gained support.He said his own calls for a convention to address the UK constitution had been "ignored" by the UK government for two years, but had now gained support.
"The old Union will not work from Friday onwards," said Mr Jones."The old Union will not work from Friday onwards," said Mr Jones.
He said later the idea of 'Home Rule' - suggested a century ago by Lloyd George - was something he "wholeheartedly" supported. He said later the idea of 'Home Rule' - suggested a century ago by Lloyd George - was something he "wholeheartedly" supported and the Senedd was "rapidly becoming the Parliament of Wales".
The first minister added that the Senedd was "rapidly becoming the Parliament of Wales".
What could an extra £300m buy the Welsh Government?What could an extra £300m buy the Welsh Government?
The letter from the three party leaders, which appeared on the front page of the Scottish newspaper the Daily Record on Tuesday, outlined the future of Scotland if there is a no vote in Thursday's referendum.The letter from the three party leaders, which appeared on the front page of the Scottish newspaper the Daily Record on Tuesday, outlined the future of Scotland if there is a no vote in Thursday's referendum.
It promised "extensive new powers" for the Scottish Parliament "delivered by the process and to the timetable agreed" by the three parties.It promised "extensive new powers" for the Scottish Parliament "delivered by the process and to the timetable agreed" by the three parties.
Welsh Conservative leader Andrew RT Davies said "nationalists" in Wales needed to "stop bellyaching" about the Barnett formula.Welsh Conservative leader Andrew RT Davies said "nationalists" in Wales needed to "stop bellyaching" about the Barnett formula.
"It's not a silver bullet," said Mr Davies. "The parties of the left all say 'we need more money' out of HM Treasury. "...you can't use it (the Barnett formula) as the only way to address the shortfalls in Wales' income as otherwise you will always be in that dependency culture," he said.
"I would love more money to come to Wales and that case needs to be made, and will be made in the context of the settlement that comes after the referendum on Thursday. Last month the Liberal Democrats said the formula should stay, but that Wales should receive top-up payments.
"But you can't use it (the Barnett formula) as the only way to address the shortfalls in Wales' income as otherwise you will always be in that dependency culture". On Tuesday, Welsh Lib Dem leader Kirsty Williams confirmed that her party would seek to pursue the policy, if it is in government in Westminster after next year's general election, and challenged the Conservatives and Labour to say how they would resolve the funding issue.
Last month, the Liberal Democrats said the formula should stay, but that Wales should receive top-up payments.
On Tuesday, Welsh Lib Dem leader Kirsty Williams confirmed that her party would seek to pursue the policy, if it is in government in Westminster after next year's general election.
She said the "challenge" was now for the Conservatives and Labour to say how they would resolve the funding issue.
The Barnett formula, named after former Chief Secretary to the Treasury Lord Barnett, was devised in 1979 as a way of adjusting block grants to Scotland, Wales and Northern Ireland to spend on devolved policy areas, on the basis of population.The Barnett formula, named after former Chief Secretary to the Treasury Lord Barnett, was devised in 1979 as a way of adjusting block grants to Scotland, Wales and Northern Ireland to spend on devolved policy areas, on the basis of population.
Previously, First Minister Carwyn Jones called for funding reforms, and in 2009 visiting professor at the Cardiff Business School Gerald Holtham headed a commission that prepared a report on the Barnett formula. In 2009 visiting professor at the Cardiff Business School Gerald Holtham headed a commission that prepared a report on the Barnett formula.
The economist said underfunding could reach £8.5bn by 2019 and described the system as "arbitrary" and in "urgent need of reform". He said underfunding could reach £8.5bn by 2019 and described the system as "arbitrary" and in "urgent need of reform".
Prof Holtham told BBC Wales that people hoping to see the end of the Barnett Formula can "forget it". On Tuesday, Prof Holtham told BBC Wales that people hoping to see the end of the Barnett Formula can "forget it".
He added: "One of the things the Welsh government has been pressing for is a very small change to the Barnett Formula that wouldn't affect the Scots, so I suppose it's just about possible that they might get that, but the formula as a whole looks like it's going to be here for some time yet. He added: "One of the things the Welsh government has been pressing for is a very small change to the Barnett formula that wouldn't affect the Scots, so I suppose it's just about possible that they might get that, but the formula as a whole looks like it's going to be here for some time yet."
"No UK party has actually promised to reform Barnett, in fact they've generally said they wouldn't, so this really reaffirms their long-held position."