4. Will the Cabinet Secretary make a statement on the budget allocation to the environment portfolio? OAQ(5)0075(FLG)

I thank Joyce Watson for that. As set out in the 2017-18 budget, approved yesterday, the budget allocation for the environment and rural affairs portfolio next year is nearly £384 million.

I thank you, Cabinet Secretary, for that response. As you know, in recent years many of my constituents have been catastrophically affected by flood events caused by severe weather, and many still remain at risk because of where they live. Therefore, the £33 million capital funding that has been allocated for flooding schemes, in addition to the £150 million innovative coastal risk management scheme, which is due to start next year, comes as very good news for those people indeed. It does demonstrate that the Welsh Government is serious, and also proactive, when it comes to protecting people’s homes and businesses from flooding, and that is critical as future severe weather events are predicted more frequently. Bearing this in mind, will the Welsh Government commit to supporting flood defence schemes, like it has in the past, in the future?

I thank Joyce Watson for that. When we published the draft budget back in October we had some difficult decisions to make on capital investment in order to live within the means that we had available to us. I said to the Finance Committee in my first scrutiny session with them that, if any additional capital were to become available in the autumn statement, my first priority would be to revisit those portfolios where some of those difficult decisions had to be made. I was very pleased—and had a series of discussions with the Cabinet Secretary involved to impress this very firmly on me—to restore the £33 million for flood defence purposes. I was very pleased indeed to be able to do that.

I’m grateful to the Member for pointing to the £150 million innovative coastal risk management scheme, because you do have to see these two things together. It follows on from Suzy Davies’s question earlier about using the whole range of tools that we have available to us to promote capital investment for important purposes in Wales. The Welsh Government is now working with NRW and local authorities to prepare a pipeline of future schemes for investment using that £150 million, and I’m very pleased to be able to give the Member the assurance she seeks that we will continue to work hard in this area to obviate the difficulties that some of her constituents have faced.

Cabinet Secretary, I must say that in yesterday’s final budget debate I was very pleased to hear you refer to the Well-being of Future Generations (Wales) Act 2015, but I have to say, when the environment budget was before the committee, it seemed to me in our scrutiny of the budget line that the Act was used much more to interpret the existing budget than to actually shape it. I do hope in the future we will be able to see how lines differ and go up and down and programmes end or get expanded, relating to the priorities in what I think is a very, very useful Act.

Can I thank the Member for that? I read very carefully what a range of scrutiny committees had to say on the budget. It was a theme in a number of committees—looking for greater evidence of impact that budget decisions were being shaped through the lens of the Act. I was very willing to accept, in front of the Finance Committee, that there is more to do and, as we shape next year’s budget, I will be looking for ways, internally, that we can strengthen the way in which the lens of the Act is making a difference to our budget decisions, to then be able to demonstrate to Assembly Members that our budget allocations are being shaped by that Act.

In relation to prevention of flooding in the future, I think there is a whole series of ways in which you can see the goals of the Act, and the five ways of working that it comprises, reflected in these investment decisions.

I’m also very pleased to see the funding being restored to the environment portfolio in terms of flood prevention and mitigation. But, I would like to ask you specifically today about another additional allocation, which is the £40 million over four years of capital funding that you have allocated for energy efficiency. If I recall correctly, you said yesterday that this would be sufficient for 25,000 homes. So, I’d like to ask you more about what the Cabinet Secretary for climate change has asked you for. Is this a scheme for homes only? Does it cover businesses and the public sector too? How can we as an Assembly monitor the success of this scheme in terms of energy efficiency and the number of properties that are safeguarded in this way, and the energy savings and the financial savings that accrue to the community?

The additional funding involves more than just homes. There is work to be done in the area of housing and to assist those people who live in poverty. But, on Monday, the Cabinet Secretary made a statement referring to more than just work with regard to housing. She outlined the things that she wants to do with regard to green growth in Wales, and I’m sure that when there are questions here at the Assembly, and in other opportunities, the Cabinet Secretary will feed back on the schemes that she can now prepare with this additional funding.