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| No big funding changes for Welsh government, says David Cameron | |
| (about 2 hours later) | |
| David Cameron has ruled out making major changes to the way the Welsh government is funded from Westminster, in the wake of the Scottish referendum. | |
| He renewed his call for Wales' first minister to take advantage of new powers and hold a referendum on devolving some control over income tax. | He renewed his call for Wales' first minister to take advantage of new powers and hold a referendum on devolving some control over income tax. |
| Carwyn Jones has said Wales needs a better financial settlement first. | Carwyn Jones has said Wales needs a better financial settlement first. |
| Mr Cameron accused Mr Jones of making a political argument, rather than doing "the right thing" for the Welsh people. | Mr Cameron accused Mr Jones of making a political argument, rather than doing "the right thing" for the Welsh people. |
| The prime minister told BBC Wales: "There aren't plans for some huge change in the formula distribution. | The prime minister told BBC Wales: "There aren't plans for some huge change in the formula distribution. |
| "It's up to different parties to make clear what happens next. For my part, as a Conservative, I want the Welsh assembly to have these powers in order to do more for the Welsh people. | "It's up to different parties to make clear what happens next. For my part, as a Conservative, I want the Welsh assembly to have these powers in order to do more for the Welsh people. |
| 'Separate issues' | 'Separate issues' |
| "I do not really understand the first minister's thinking here, because surely it makes more sense for the Welsh assembly, whatever the level of grant it gets, to have the power to be able to raise and spend more of its own money? | "I do not really understand the first minister's thinking here, because surely it makes more sense for the Welsh assembly, whatever the level of grant it gets, to have the power to be able to raise and spend more of its own money? |
| "It sounds like he is making quite a political argument rather than just thinking: 'These are separate issues, let us do the right thing for the Welsh people and have devolution' - which is my view." | "It sounds like he is making quite a political argument rather than just thinking: 'These are separate issues, let us do the right thing for the Welsh people and have devolution' - which is my view." |
| Mr Jones has refused to call a referendum on tax raising powers unless the UK government addresses what he claims is a funding shortfall under the Barnett Formula, that distributes money from the Treasury to the devolved governments of Wales, Scotland and Northern Ireland. | Mr Jones has refused to call a referendum on tax raising powers unless the UK government addresses what he claims is a funding shortfall under the Barnett Formula, that distributes money from the Treasury to the devolved governments of Wales, Scotland and Northern Ireland. |
| A spokesman for the first minister said: "This is the exact sort of U-turn we warned against following the referendum in Scotland. | |
| "The prime minister previously said he would address the fair funding issue, and now he appears to be going back on that. | |
| "What he is proposing would leave Wales worse off, and we cannot accept that. | |
| "We know that we are being underfunded by £300m a year and this must be addressed without further delay." | |
| On Tuesday, the UK government published changes to proposed legislation which would give the Welsh government greater flexibility if it agreed to take partial control of income tax. | On Tuesday, the UK government published changes to proposed legislation which would give the Welsh government greater flexibility if it agreed to take partial control of income tax. |
| But that appears a remote possibility, after the prime minister indicated his reluctance to offer any more money to the Welsh government. | But that appears a remote possibility, after the prime minister indicated his reluctance to offer any more money to the Welsh government. |