Scottish referendum: Economist says funding formula 'to stay'

A pledge by the three Westminster party leaders to keep the current funding system for Scottish, Welsh, Northern Ireland governments and English departments has been criticised by a leading Welsh MEP.

A letter from David Cameron, Ed Miliband and Nick Clegg in a Scottish newspaper pledged to retain the formula in the event of a no vote.

Under the system, Scotland gets more spending per head than the UK average.

Plaid MEP Jill Evans says Wales will continue to lose out and the pledge is a sign of panic.

Economist Professor Gerry Holtham, who chaired the Welsh government's commission looking at devolution finance in Wales, said what had been pledged effectively means the formula is to be here some time yet and reaffirms a long term position.

He told BBC Radio Wales' Oliver Hides that Wales does not have much of a bargaining position.