As agreed by the terms of the October 2012 joint statement on funding reform, the Welsh Government and UK Government completed a joint review of the pattern of convergence in Welsh relative funding in advance of the 2015-16 spending round.
In the run up to the spending round, Welsh Government and Treasury officials tested alternative spending scenarios for 2015-16 which were then assessed for their impact on Welsh relative funding levels. Based on this analysis, both Governments were able to conclude that no convergence is forecast during the 2015-16 spending period. That conclusion was formally recorded in an exchange of letters, between the Welsh Finance Minister and me, that took place ahead of the spending round announcement.
Following the spending round announcement yesterday, I am now able to confirm the relative funding trend for Wales up to 2015-16. There will be a small degree of divergence in Welsh relative funding during 2015-16 as shown in the table below:
This work was taken forward collaboratively with the Welsh Government and is a good example of the two Governments working together for the benefit of Wales and the rest of the UK. The review process will be repeated ahead of the next formal spending review and I look forward to continuing to work closely with the Welsh Government on this process in the future.