Response due on public cash call

http://news.bbc.co.uk/go/rss/-/1/hi/wales/wales_politics/8380124.stm

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The UK government will respond later to a report calling for a big increase in the amount of public money allocated to Wales.

The Holtham Commission, which examined the formula by which funding is given to the devolved nations, said it should be "fundamentally reformed".

It said Wales would receive hundreds of millions of pounds more under a "fairer system".

The commission called for a needs-based system to be used instead.

The independent commission was set up by the Welsh Assembly Government to examine the Barnett formula which is currently used to allocate money.

Chaired by Aberdare-born economist Gerald Holtham, it suggested Wales received less than it would do if it was funded by the UK government using the same formulae that applies within England.

It takes into account the need for public services and the cost of providing them.

In the absence of reform, the commission said the formula meant that Wales could be underfunded by up to £8.5bn by the end of the next decade - £2,900 per person.