This is the second in a series of reports by researchers from Cardiff University’s Wales Governance Centre and the Institute for Fiscal Studies on the 2016-17 Fiscal Framework Negotiations for Wales. A previous report outlined options for adjusting the Welsh block grant after tax devolution, demonstrating that hundreds of millions of pounds are at stake for the Welsh budget. This report focuses on the expenditure side, namely the Barnett formula and how a funding floor might interact with the block grant after taxes are devolved to Wales from April 2018.