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The future of the UK is at “threat”, a major House of Lords report warns today.

Peers criticise the refusal to introduce a funding system which would address the needs of the poorest regions.

Successive UK Governments have taken a “piecemeal and incoherent” approach to devolution, according to the Constitution committee.

Its members argue that governments have taken the union “for granted” and demonstrated a“haphazard approach” to the constitution.

These are the key points from the report:

1. Fair funding must be provided

The authors press for a change to the way the devolved governments are funded.

They say: “In our view, to perpetuate the use of the Barnett Formula, which takes no account of relative need, makes a mockery of the Government’s duty to ensure a fair distribution of resources across the UK.

"We recommend that the UK Government reconsider its use of the inadequate Barnett formula and establish a mechanism that takes into account the relative needs of different nations and regions in allocating funds.”

In the final stages of the Scottish referendum campaign, the UK Conservative, Labour and Liberal Democrat leaders signalled that the Barnett formula – which is widely seen to benefit Scotland – would remain in place.

But Welsh leaders say it locks in inequality

In his evidence to the committee, First Minister Carwyn Jones said: “Our fear is that as we take on income tax-varying powers, unless Barnett is dealt with we will basically lock in what for us is inequality in our funding.”

The committee criticises the pledge to keep Barnett.

They write: “The commitment by the pro-Union party leaders to retain the Barnett Formula... clearly underlines the piecemeal and incoherent approach that has characterised successive UK Governments’ decision-making in relation to devolution.”

The UK Government last year moved to address concerns with the announcement of a funding “floor” to protect levels of Welsh funding.

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2. Don't devolve welfare

(Image: Philip Toscano/PA Wire)

The report warns against devolving welfare, stating this “risks damaging the common, UK-wide welfare system that is a key element of the social union.”

The peers found “no evidence of strategic thinking in the past about the development of devolution”.

Arguing that an “inattentive” attitude must come to an end, the peers demand that proposals for further devolution should be considered within a set of principles to “safeguard the integrity of the union”.

The warning comes on the heels of months of controversy about the draft Wales Bill, with a refreshed set of proposals to transfer powers to the Assembly expected in the near future.

The committee states that it does not think the passing of the next Wales Act will mean “all the pieces for a stable constitutional settlement will be in place”.

3. A new mindset is needed

The report flags up a “lack of public understanding” about devolution.

It warns: “Amongst the devolved nations, it seems particularly acute in Wales with its complex conferred-powers model of devolution (albeit a model which is less complex than that used in 2006-11).”

Calling for a “new mindset” at “all levels of government”, the authors say the devolved institutions, such as the Assembly, must be recognised as “established components of the UK’s constitution”.

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4. Governments need to work together

They call for the UK Government to abandon a “devolve and forget” attitude and instead “engage with the devolved institutions across the whole breadth of government policy, co-operating and collaborating where possible.”

The Joint Ministerial Committee – which brings together ministers from across the different governments “should be reformed to promote co-operation and collaboration, rather than grandstanding and gesture politics.”

The report also stresses the importance of the role played by the BBC and other public service broadcasters play in maintaining “a common British identity”.

It states: “It is vitally important that independent public sector broadcasters continue to provide a common UK-wide service in addition to regional and local coverage, particularly in relation to topics such as news and current affairs.”

Here's the UK Government response

A UK Government spokesperson said: “We thank the Committee for its report and contribution to the debate and will respond fully in due course.

“The UK Government is committed to maintaining and strengthening the United Kingdom. It also has a clear programme to provide further devolution and decentralisation to the nations and regions of the United Kingdom in line with local opinion and has addressed concerns about the impact of devolution on democracy in England by implementing English Votes for English Laws.

“Together this ambitious programme will deliver an enduring constitutional framework to support and strengthen our democracy.”