Andy Burnham, the only declared candidate to replace Sir Keir Starmer as Labour leader and Prime Minister, appears to have reversed his stance on reforming the Barnett formula that funds Wales. In his 2024 book 'Head North: A Rallying Cry for a More Equal Britain', co-authored with Steve Rotheram, Burnham described the formula as a short-term fix from the 1970s that unfairly skews money across the UK.
Burnham's Previous Criticism of Barnett Formula
In the book, Burnham used a metaphor of a rambling stately home with uneven lighting to illustrate regional disparities. He wrote that the Barnett formula was only meant to be a temporary solution to political problems and is now highly unfair, particularly to the north of England. He recounted a meeting with Joel Barnett, the formula's creator, who urged him to scrap it.
Burnham argued for a new UK-wide funding formula based on social factors and need, similar to how the EU allocated infrastructure investment. He warned that without reform, the north-south divide would widen.
U-Turn on Reform Plans
However, a spokesperson for Burnham told BBC Wales that his plans would not include changes to the Barnett formula for Wales and Scotland. The spokesperson said: 'Andy has spent his whole political career fighting for the nations and regions of the United Kingdom – he will put Wales at the centre of any government he runs, radically pushing power down and out of Westminster and Whitehall.'
This contradicts his earlier call for a new formula covering the whole UK, including English regions. The Barnett formula determines the block grant for devolved administrations, funding nearly 80% of the Welsh Government's budget for public services like health and education.
Political Context and Reactions
Plaid Cymru has long demanded replacing the Barnett formula with a fairer system. Leader Rhun ap Iorwerth raised the issue with Keir Starmer in their first phone call. Wales' finance minister Elin Jones also made it a key priority in her meeting with the UK Government's Chief Secretary to the Treasury.
Burnham's nomination period runs until July 15, with a special conference on July 17. If unopposed, he would become Prime Minister that day. His apparent U-turn has sparked debate over his commitment to Welsh funding reform.
