Wales' First Minister Rhun ap Iorwerth has said Wales has "won the argument" on securing Scotland-style borrowing and financial flexibility powers, following a meeting with Prime Minister Andy Burnham at the National Economic Council in Glasgow.
Mr ap Iorwerth told WalesOnline he was leaving Scotland having made "a number of really positive and definitive gains", though he acknowledged there was still work to be done on rail funding.
Meeting with leaders
The First Minister met Mr Burnham alongside leaders from Scotland and representatives from Northern Ireland to discuss handing regions more powers to control employment support and funding for reindustrialisation.
Following the meeting, Mr Burnham said he wanted to ensure no part of the UK was "left behind" and stressed the importance of the four nations moving at the same pace together to see improvements in employment and living standards.
Borrowing and fiscal flexibility
Speaking on his way home from Glasgow, Mr ap Iorwerth said he had been assured that getting parity with Scotland on borrowing and financial flexibility was now "a matter of when and how, not if".
Wales can only borrow up to £150m a year, with total debt capped at £1bn, while Scotland can borrow up to £472m a year with total debt capped at £3.14bn. Wales also lost £155m to the Treasury in 2023 because it did not spend it within a certain timeframe and has no power to move funds between capital and revenue spending.
Mr ap Iorwerth said: "On borrowing powers for Welsh Government and the fiscal flexibilities that we have been making the case for so that we can spend our money in a better way, I was assured now that this is a matter of when and how, not if. That's a very important win for us in Wales."
An increase in fiscal flexibilities would give the Welsh Government more control over how and when they spend money. For example, they are currently restricted from using leftover money from their capital budget on day-to-day pressures on the NHS, but increased powers would allow the devolved administration to make that call.
Other discussions
Mr ap Iorwerth also said there were "very worthwhile discussions" on the UK Treasury granting the tax exemption needed to progress the Cynnal pilot - the £10 weekly payment to the families most in need.
The First Minister also said Mr Burnham recognised underfunding of Welsh rail needed to be addressed, though this week's budget had shown a "woeful inadequacy" on the issue. He added that there was still work to do on the devolution of policing and justice.
Mr ap Iorwerth said he was given a real assurance that Westminster would not intervene in devolution in Wales, and he would hold the UK Government to that assurance.
After the meeting, Mr Burnham said they had a good discussion on reindustrialisation and the offer of more devolution of innovation funding to the regional level, as well as employment support, particularly for young people, noting there are too many young people out of work in Scotland, Wales, and England.
