Andy Burnham is the clear frontrunner to replace Sir Keir Starmer as prime minister. He is also already disappointing his potential partners in Cardiff.
Despite previously calling for a total overhaul of how the UK distributes public money, Burnham has no intention of reforming the Barnett formula if he enters Downing Street. The news, confirmed to BBC Wales, effectively shelves a long-standing demand from Welsh political leaders before the leadership contest has even truly begun.
The Resurfaced Promise
Two years ago, Burnham co-authored a book with Liverpool Mayor Steve Rotheram that took a sledgehammer to the status quo. He described the UK as a "rambling stately home" where power and light were concentrated in London, while Wales and Northern Ireland were left in "dimmer" rooms at the end of the landing. He argued then that it was time to "tear up" existing arrangements and replace them with a system based on social factors and actual need.
That rhetoric now sits in direct opposition to his current position. The Barnett formula, which determines Welsh funding primarily based on population share, remains the bedrock of the Treasury's approach. It is not changing. Not under a Burnham government.
A Strained Relationship
For Plaid Cymru First Minister Rhun ap Iowerth, the pivot is a major red flag. "This is not a great start," he said on Wednesday. He argued that the issue is too important to be cast aside by a candidate who has not yet taken office.
Ap Iowerth is now demanding a meeting. He wants more than just a funding debate; he is pushing for devolved control over policing, justice, and the Crown Estate. He believes Burnham’s experience as mayor of Greater Manchester should have fostered a deeper understanding of the frustrations inherent in the current devolution settlement.
The Political Calculus
Burnham’s spokesperson insists that the candidate remains committed to "radically pushing power down and out of Westminster." The strategy appears to be a focus on decentralization rather than a total rewrite of the fiscal rulebook.
It is a pragmatic retreat. Reforming the Barnett formula is a political minefield. Any move to increase funding for Wales or Scotland would inevitably trigger demands for similar adjustments across the English regions. It would also invite a backlash from Treasury officials who view the current system as a stable, if imperfect, mechanism for managing the union’s finances.
Key Takeaways
- Formula Remains: Burnham will not reform the Barnett formula, despite his past calls to "tear up" the system.
- Plaid Cymru Reacts: First Minister Rhun ap Iowerth has criticized the move, calling it a poor start to a potential premiership.
- Focus on Power: Burnham’s team is pivoting toward decentralization and pushing power out of Whitehall rather than changing the core funding distribution.
Burnham is currently the only contender for the Labour leadership. If no other challenger emerges, he could be in Downing Street by July 17. He will arrive with a mandate, but he will also arrive with a growing list of unresolved tensions in Cardiff. The question is no longer whether he will change the system. It is how he plans to manage the fallout from those who expected him to.