The Welsh and Scottish Governments have described their current funding arrangement as not fit for purpose.
Following a meeting with Chief Secretary to the Treasury Rishi Sunak, Finance Minister Rebecca Evans and Scotland鈥檚 Finance Secretary Derek Mackay said that Wales and Scotland did not have the necessary financial arrangements to deal with the economic consequences facing both countries as a result of what they described as the 海角视频 Government鈥檚 chaotic management of the 海角视频鈥檚 EU exit.聽
Ms Evans said: 鈥淚 am disappointed that the Chief Secretary failed to provide us with the clarity, honesty and commitment that we have repeatedly called for from the 海角视频 Government.
鈥淒espite being promised a three-year Comprehensive Spending Review at our last Finance Ministers鈥櫬爉eeting, we now face a one-year spending round next week. That review cannot leave us short-changed again.
"After nine years of austerity our Welsh Government budget is 5% lower in real terms than it was back in 2010.
鈥淲e currently face the prospect of a no deal Brexit, and in those circumstances we know that the economy in Wales is likely to be around 10% smaller in the long term. This would be reflected in real incomes that, in today鈥檚 terms, would be up to 拢2,000 lower per person than otherwise. There was little comfort in today鈥檚 meeting in helping us deal with that.鈥
Mr Mackay said: 鈥淭he actions of the 海角视频 Government in attempting to shut down Parliament to force through a no deal outcome means that the 海角视频 stands on the cusp of an economic crisis.
鈥淎longside my Welsh counterpart, I made it abundantly clear to the Chief Secretary to the Treasury the impact that a no deal Brexit will have on Scotland鈥檚 economy and jobs. I also urged him to provide a cast-iron guarantee that all lost EU funding will be replaced in full by the 海角视频 Government.
鈥淭he Chief Secretary failed to provide those assurances and so I challenged him to work with us to agree a new framework for future funding allocations. With a no deal scenario looking increasingly more likely, the current financial arrangements are not fit for purpose. We need a new agreement to ensure that the Scottish and Welsh governments have the necessary powers to help mitigate, as best we can, the damage caused by the 海角视频 Government鈥檚 no deal actions.
鈥淭he decision to only part-fund聽additional costs resulting from changes to public sector pensions further demonstrates the need for a聽new framework so that the 海角视频 Government聽fairly respects devolved administrations."
