Barnett review group members announced

PR on the Barnett Review

CHAIR OF COMMISSION ON
FUNDING AND FINANCE ANNOUNCED

One of the UK’s most respected investment fund managers and economists has been appointed to chair the Assembly Government’s Commission on Funding and Finance. Aberdare-born Gerald Holtham, will chair the Commission which, in the first instance, will examine the present allocation of public expenditure to the Welsh Assembly Government through the Barnett Formula.

The appointment was announced today by First Minister Rhodri Morgan in a special media briefing with Deputy First Minister Ieuan Wyn Jones to mark the first anniversary of the signing of the One Wales agreement. The review of funding and finance is a One Wales commitment and the appointment marks a significant milestone for the Assembly Government.

The First Minister hailed the appointment as a major coup for Wales. He said: “There are few people as qualified to lead this review as Gerald Holtham who is one of the UK leading financial experts and a passionate Welshman. He already serves on Economic Research Advisory Panel (ERAP) which advises the Assembly Government on economic research and provides evidence for public policy making. His appointment marks a significant step forward in delivering one of our key One Wales commitments.”

Deputy First Minister, Ieuan Wyn Jones said, “In the One Wales programme of Government both Labour and Plaid Cymru agree that the Welsh Assembly Government should receive “a fair allocation of funding so that people across the nation can see enduring differences and real outcomes. This Commission is an important step forward in reaching our aims and I wish Gerald Holtham well with this important work”.

Gerald Holtham said: “Reviewing the current funding formula is an exciting and challenging task but very worthwhile. I look forward to work starting in earnest in September when other panel members are appointed.”

The tasks set for the Commission on Funding and Finance are in the first phase to review the Barnett Formula, before looking to broaden its work in phase 2 to consider other issues including tax varying powers and borrowing powers. There is also a requirement to develop a thorough and robust evidence base to ensure a well informed debate on the issues.

The Commission will:
look at the pros and cons of the present formula-based approach to the distribution of public expenditure resources to the Welsh Assembly Government; and
identify possible alternative funding mechanisms including the scope for the Welsh Assembly Government to have tax varying powers as well as greater powers to borrow.

The Commission will be a small expert panel. It is expected to begin work in September and report back to Ministers with an interim report on Phase 1 of the work by the summer of 2009. The interim report would be published and debated in the Assembly prior to undertaking more detailed work towards the end of the year.

It is expected that the Commission’s work will run in parallel with the Calman Commission in Scotland and that both Commissions would be able to liaise over their respective work programmes and, where relevant and appropriate, share research papers.

Note to Editors:

Gerald Holtham is current Director of Cadwyn Capital LLP, a Director of the Institute of Welsh Affairs and a visiting professor at Cardiff Business School where he is co-director of the Investment Management Research Unit. He has wide experience of conducting and applying economic research on a range of public policy issues and was previously the Chief Investment Officer of Morley Fund Management – one of the largest active fund managers in the UK. He was Director of the Institute of Public Policy Research and was a member of the OECD for 10 years where he was Head of the General Economics Division. He was also Chief Economist at Lehman Brothers and an ex-fellow of Magdalen College, Oxford. He is a member of Glas Cymru and serves on the Welsh Assembly Government’s Economic Research Advisory Panel (ERAP). He was born in Aberdare and divides his time between his homes in London and Nantymoel.