Source · Select Committees · Welsh Affairs Committee

Recommendation 10

10 Accepted

Devolution principle requires Welsh Government autonomy over its budget, free from ring-fencing.

Conclusion
It is a fundamental principle of devolution that decisions affecting Wales should be made in Wales and that the Welsh Government should have autonomy over its budget, without ring-fencing imposed by the UK Government. (Conclusion, Paragraph 66)
Government Response Summary
The government confirms that agriculture and fisheries funding is no longer ringfenced and devolved governments, including Wales, now have autonomy to decide how to spend this funding from 2025-26.
Government Response Accepted
HM Government Accepted
Agriculture and fisheries funding from 2024–25 has been added to the devolved governments’ baseline funding from 2025–26, meaning the funding amount will be maintained in cash terms. Funding is no longer ringfenced and the devolved governments can choose how to spend this in devolved areas. In Wales, the Welsh Government will be responsible for decisions on how to use the funding and are accountable to the Senedd for those decisions. In future, the Barnett formula will apply in the normal way to agriculture and fisheries funding provided to the Department for the Environment, Food and Rural Affairs in England.