Don Peebles, Head of Devolved Nations at CIPFA, commented:
“Yesterday’s Budget will see Wales receive an extra £1.2bn in capital funding by 2020. This is welcome news, however, the Welsh Government must be allowed to allocate these resources freely, rather than there being any ring-fencing of funds.
“Data shows that Wales significantly benefits from EU structural and investment funding, more so than any other country in the UK. And so any loss of funding, combined with any constraints on immigration and volatility in tax revenue, could lead to a reduction in Welsh public spending power.
“Because of the risks Brexit poses to Welsh public finances, the chancellor cannot keep ducking the issue, and we that hope in the future he will work with the Welsh Government to ensure the country is equipped with the resources and fiscal powers it needs to sustain any shocks.”
The issue is being discussed today at CIPFA Wales’ Annual Conference, an event that brings together the top figures in public finance in Wales.
CIPFA’s Brexit Advisory Commission for Public Services is set to release analysis later this month that will include recommendations on how best EU funding could be replaced to bridge divides in regional inequalities between devolved nations.
ENDS
Notes to editors
About CIPFA Wales CYMRU
The largest and the main public sector conference in Wales once again returns to Cardiff on 23 November 2017. The CIPFA Wales Annual Conference once again provides its successful blend of inspiring plenary sessions and streamed optional workshops. All of this is supplemented by a new and improved evening programme of entertainment which will feature the inaugural CIPFA Wales Public Finance Awards.