Andy Burnham, a leading contender to replace Sir Keir Starmer as leader of the Labour Party and potentially Prime Minister, has stated he does not intend to reform the primary funding system for the Welsh government. Burnham, who recently returned to the House of Commons after winning the Makerfield by-election, is currently the sole declared candidate, with a potential leadership handover date set for July 17.
Burnham, along with his counterpart Steve Rotheram, previously co-authored a book in 2024 advocating for a new formula for distributing public money across the entire UK. This proposed formula would include English regions as distinct entities and allocate funds based on social factors and levels of need. The book critiqued the existing system, likening the UK to a "rambling stately home" where power and resources were unevenly distributed, with areas like Greater London functioning well while Wales and Northern Ireland were likened to dimmer rooms.
The proposal also suggested discarding the Treasury's "Green Book," which provides official guidelines for UK government spending, a system critics argue disadvantages Wales and English regions in favor of southeastern England. Burnham had previously expressed during his 2015 Labour leadership bid that he recognized Wales's perceived underfunding while serving as a Treasury minister, stating that he would take steps to rectify this if he were leader.
When asked by BBC Radio Wales Breakfast about the implications of a potential Burnham premiership for Wales, Wales Office minister Claire Hughes acknowledged it was "early days." She noted "genuine excitement" surrounding reports of plans to relocate parts of the Prime Minister's office to Manchester. However, Hughes emphasized that it would be up to Burnham to articulate his policies on devolution for Wales should he assume the premiership.