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Carwyn Jones calls for 'new funding system' for Wales Ditch 'Blu Tack and cardboard' funding system, says Jones
(35 minutes later)
First Minister Carwyn Jones has called for a new funding system that meets the needs of public services in Wales.First Minister Carwyn Jones has called for a new funding system that meets the needs of public services in Wales.
It sets him against Downing Street and his own party's leadership, which has said it will keep the existing system.It sets him against Downing Street and his own party's leadership, which has said it will keep the existing system.
The UK government uses the Barnett formula to decide the size of its funding to the Welsh government.The UK government uses the Barnett formula to decide the size of its funding to the Welsh government.
Mr Jones said the formula, devised in the 1970s, was "the constitutional equivalent of fixing a hole in the roof with Blu Tack and cardboard".
Labour has said it would make adjustments to help Wales, but Mr Jones again called for a new formula based on the UK nations' and regions' needs.Labour has said it would make adjustments to help Wales, but Mr Jones again called for a new formula based on the UK nations' and regions' needs.
In a speech in London on Wednesday, Mr Jones said the Barnett formula, devised in the 1970s, was "the constitutional equivalent of fixing a hole in the roof with Blu Tack and cardboard". 'Drop of a hat'
He added: "Scotland gets promises made to it at the drop of a hat. In Wales we have to wait more than a year." In a speech in London on Wednesday, Mr Jones said: "Scotland gets promises made to it at the drop of a hat. In Wales we have to wait more than a year."
The Welsh government has said it is short changed by around £300m a year under the current arrangement.The Welsh government has said it is short changed by around £300m a year under the current arrangement.
Prime Minister David Cameron recently told BBC Wales: "There aren't plans for some huge change in the formula distribution."Prime Minister David Cameron recently told BBC Wales: "There aren't plans for some huge change in the formula distribution."
Meanwhile, Labour has said it would meet the Welsh government's call for "fair funding", but has ruled out scrapping the Barnett formula.Meanwhile, Labour has said it would meet the Welsh government's call for "fair funding", but has ruled out scrapping the Barnett formula.
Together with the Conservatives and the Liberal Democrats, Labour committed to retain the formula as part of the Scottish independence referendum campaign.Together with the Conservatives and the Liberal Democrats, Labour committed to retain the formula as part of the Scottish independence referendum campaign.
'New mindset' Analysis by political correspondent Daniel Davies
Carwyn Jones is trying to come up with an argument that gets him taken seriously in Westminster. But what leverage does he have?
Alex Salmond represents a very real threat to Westminster. On Tuesday, he said Scots felt betrayed and warned Labour and the Tories would pay the price at the ballot box.
The Welsh Labour leader doesn't have that option. Instead, he has to keep prodding Downing Street and the upper echelons of his own party. His record so far - on funding, for example - is mixed.
Tuesday's cross-party statement in the assembly called for talks on topping up Welsh funding. But now the first minister is making it clear he thinks that's only a first step.
The Welsh government has been calling for this since 2009, and yet the three big Westminster parties have ruled out the change Mr Jones wants: a new needs-based formula to replace Barnett.
Will his appeal for a 'new mindset' bring about a change of heart?
But Mr Jones said a more fundamental overhaul for the whole of the UK was required.But Mr Jones said a more fundamental overhaul for the whole of the UK was required.
He said it was not a case of "special pleading or saying to Scotland 'give us your money'".He said it was not a case of "special pleading or saying to Scotland 'give us your money'".
He added: "It's very difficult to make a logical case for the retention of Barnett as it is.He added: "It's very difficult to make a logical case for the retention of Barnett as it is.
"In the meantime I would say - selfishly - fine, as long as we've got the money in Wales then we're fine... (but) at some point in time there's going to have to be an examination of Barnett.""In the meantime I would say - selfishly - fine, as long as we've got the money in Wales then we're fine... (but) at some point in time there's going to have to be an examination of Barnett."
It was a "fundamental principle of the Union that money is distributed to where it's needed at that time", he said.It was a "fundamental principle of the Union that money is distributed to where it's needed at that time", he said.
His speech called for a "new Union mindset" and "more federal thinking in the UK".His speech called for a "new Union mindset" and "more federal thinking in the UK".
Mr Jones attacked moves towards English votes for English laws in the Westminster Parliament, and said further devolution promised to Scotland during the referendum campaign had to be honoured.Mr Jones attacked moves towards English votes for English laws in the Westminster Parliament, and said further devolution promised to Scotland during the referendum campaign had to be honoured.
Also on Wednesday, his predecessor Rhodri Morgan delivered a speech in Cardiff calling for a new funding system and an elected House of Lords.
He said the principle of the funding formula should form part of a new written constitution for the UK.