4. 4. Statement: Employability

Part of the debate – in the Senedd at 3:29 pm on 15 November 2016.

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Photo of Julie James Julie James Labour 3:29, 15 November 2016

At the risk of appearing like groundhog day, there isn’t any extra money. The Member will be familiar with how the Barnett formula works. So, what the Treasury has done is announce a consequential of one part without showing you what the disconsequential of another part is. So, for example, there’s a 17 per cent cut in the base funding, which is matched against the apprenticeship funding. That’s just one of them; there are several others. So, you will know that a fundamental principle of devolution is that the money comes to the Welsh Government for the Welsh Government to set its priorities. The idea that you can change general taxation for a specific employment tax and then bemoan the fact that it isn’t being ring-fenced is just extremely—well, laughable, quite frankly. It’s not clear either how it will be spent in England. So, whilst it’s true that there will be a voucher system for some employers that pay the levy, it’s not at all clear to me how SMEs who don’t pay the levy will get funding, nor is it clear how public sector bodies paying the levy will be able to spend that funding. So, it’s nothing more than a cut in general taxation, replaced by a specific tax. And I’m afraid, Dirprwy Lywydd, I have no other words to express it. I feel I’ve really said it until it’s been said to death.

In terms of the rest of it, the Member made a reasonable point about the need for businesses to be included in our plans, and, of course, they are. I talked a lot about nationally commissioned and regionally focused schemes. The Member will be familiar with the workings of the regional skills partnerships, and, of course, they have been consulted in the way that we have looked at our national policy, and they will continue to be consulted, and, indeed, they’ve worked very hard on putting their own plans together.