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Public Expenditure

Volume 496: debated on Thursday 16 July 2009

To ask the Secretary of State for Wales whether the draw-down by the National Assembly for Wales of its allocation under EU structural funds on top of its Barnett-determined budget resulted in a reconciliation deduction in the overall block grant for Wales in each year since 2005. (287273)

Until 2005-06 departmental expenditure limits only included the expenditure element of EU structural funds and additions were made to the Wales departmental expenditure limit beyond the Barnett Formula. The receipts were paid separately to the National Assembly for Wales and were therefore identified separately in the calculation of the block grant.

From 2006-07 the budgeting arrangements for EU receipts changed and departmental expenditure limits were expressed net of EU receipts. Thus no deduction is now necessary. The receipts continue to be paid into the Welsh Consolidated Fund and are additional to the block grant.