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Funding from the UK Government

The Welsh Government determines spending priorities for Wales from the funding made available to it by the UK Government under the Barnett formula arrangements.

The Barnett formula is a non-statutory mechanism used by UK central government to apportion public expenditure changes to Wales, Scotland and Northern Ireland.  It is based on population, not need. 

The formula determines the change to the inherited level of spending for each of the devolved administrations in Wales, Scotland and Northern Ireland. 

If new money is announced by the UK Government then Wales will receive a consequential proportion of that new money under the Barnett formula.  It is for the Welsh Government to decide on use of that money.

This means that budget announcements by the UK Chancellor of the Exchequer about additional resources for education may or may not apply to Wales depending on whether they involve new money for which Wales receives a consequential.  If there is a consequential, it will still be for the Welsh Government to decide how it spends that money.