As agreed by the terms of the October 2012 joint statement on funding reform, the Welsh Government and UK Government completed a joint review of the pattern of convergence in Welsh relative funding in advance of the 2015-16 Spending Round.
In the run up to the Spending Round, Welsh Government and Treasury officials tested alternative spending scenarios for 2015-16 which were then assessed for their impact on Welsh relative funding levels.
Based on this analysis, both Governments were able to conclude that no convergence is forecast during the 2015-16 spending period.
Jane Hutt said:
“While further convergence was unlikely on this occasion due to our extremely tight funding settlement, I’m pleased that we have successfully completed a joint review of convergence.
“It was the first test of the commitments made in the October joint statement on funding reform, and the process operated smoothly. A review of this kind will take place prior to each Spending Review and if convergence is forecast to resume in the future the issue will be addressed by both Governments.”