Why does the Wales budget deficit discussion generate more heat than light?

Wales can’t possibly consider Independence with such a huge budget deficit.

Spending more than it raises in taxes.

A deficit of billions of pounds, that an Independent Wales would have to address by tax rises or service cuts.

So the narrative goes.

But how do we know this?

It first came to prominence in a 2019 financial report by the Wales Governance Centre of Cardiff University.

They in turn used the data from the ONS [ Office for National Statistics ] who decided in the previous year to produce a new set of financial data called the Country and Regional Public Sector Financial Reports, laying out the financial positions of the nations and regions of the UK.

It was introduced, says the ONS by popular demand, although Scotland produces their own data as does the UK Treasury and although you would think that such calculations would be a function of government, Wales does not.

This was introduced after almost two decades of devolution and it didn’t look good for Wales.

The Wales Governance Centre produced a similar conclusion. Not surprising as they used the same figures.