4. Debate: The Final Budget 2018-19

Part of the debate – in the Senedd at 4:39 pm on 16 January 2018.

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Photo of Jane Hutt Jane Hutt Labour 4:39, 16 January 2018

Well, it was very helpful, when we met with the future generations commissioner, that she looked at very practical examples of, for example, the preventative agenda, and pointed to the integrated care fund, as part of that, fitting very well into the aims of the future generations Act.

But I just continue to say that, as a result of third sector engagement, we've got co-location of a third sector service, with the Vale Community Resource Service at Barry Hospital, and that results in the streamlining of referrals and social prescribing. Of course, those are the examples that we need to give, which also will help respond to the review.

It is very important that we address the question of who pays for social care, and I was pleased that the Cabinet Secretary included Professor Gerry Holtham's proposal to explore a levy to support social care as part of the four new tax ideas. I hope that this will be pursued, even if it isn't a new tax option that will be tested with the UK Government. Gerry, of course, commented recently on this in the context of increased spending on the NHS and the pressures.

The Cabinet Secretary made housing a priority in his draft budget plans, approved by the Assembly, of course, and in the draft budget, there was of course additional capital and revenue investment, including £20 million to tackle homelessness, and I do welcome the additional £10 million to target youth homelessness. Again, a clear priority of this Welsh Labour Government. This budget is about priorities and principles and I'd like to commend the finance Secretary on his approach to our new fiscal powers. It's good to learn that the impact of these new fiscal powers provides an additional £17 million revenue as a result of the permanent funding floor, and £30 million as a result of decisions taken with regard to income from devolved taxes. Capital spending will also receive a boost as a result of our extended borrowing powers and also, of course, we have that welcome capital injection announcement today.

When we received evidence from the Office for Budgetary Responsibility director, Robert Chote, in the Finance Committee in December, he commented positively on the approach taken by the Welsh Government in setting the rates and bands of the new land transaction tax. Of course, following the announcement by the Cabinet Secretary that more homebuyers will benefit from his changes to land transaction tax, with people buying homes in Wales for less than £180,000 paying no tax under the changes to LTT and the taxes devolved in April, Robert Chote reflected on Wales nudging the system more in a progressive direction. This is consistent with the Cabinet Secretary's aim to make tax fairer and contribute to a more equal Wales, and I welcome this evidence of putting principles into practice with our important new tax fiscal powers in Wales.

So, I want to finish by adding to the statements made by the Cabinet Secretary and colleagues today on the fiscal impacts of austerity. It's disabled people, single parents and women who've been amongst the biggest losers under seven years of austerity. And since the coalition Government imposed austerity in 2010, of course, we resisted those very early cuts, but those cuts have risen to over £1 billion over the past eight years. This Welsh Government has provided a shield in Wales to mitigate against austerity and the cuts. So, the Cabinet Secretary has unveiled a new budget for Wales, reflecting the Welsh Government's new tax and borrowing powers. He's using these new powers to deliver the priorities that will benefit health, social care, education and housing, and underpin the economy in a fair and robust way, and I commend this budget.