3. Statement by the Cabinet Secretary for Finance: The Wales Infrastructure Investment Plan Mid-point Review 2018

Part of the debate – in the Senedd at 2:49 pm on 1 May 2018.

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Photo of Mark Drakeford Mark Drakeford Labour 2:49, 1 May 2018

Dirprwy Lywydd, I thank the Member for those questions. Let me take the two general ones first. As far as public spending constraint is concerned, the choice that faced the Government ought not to have been between steeper, swifter cuts and the long, slow strangulation of the UK economy, which they have embarked upon; the choice ought to have been to use counter-cyclical investment, particularly of an infrastructure sort at a time when the costs of borrowing had never been lower. And instead, George Osborne, rather than doing what was done in the United States of America and on the continent of Europe to take that opportunity to stimulate economic growth, chose the most inopportune moment you can imagine to reduce capital investment right across the United Kingdom. Now, of course, I entirely agree with what Nick Ramsay said: the UK Government is not to blame for the Brexit decision and I didn't suggest that they were. What I am reflecting in my statement is what private sector businesses and organisations tell this Government and tell the UK Government all the time, which is that the uncertainty about Brexit is having an impact on their ability to plan investment into the future. I believe that there are steps that the UK Government could have taken to have provided greater certainty in the way that they have gone about Brexit, but it is an unavoidable fact, for the UK Government as well as ours, that a major change of this sort, whatever view you may take of it, brings huge uncertainty with it, and that is making an impact on investment decisions of private businesses not just in Wales, but across the United Kingdom.

Can I briefly deal with the more specific questions the Member raised? I appreciate very much what he says about the twenty-first century schools programme. Monmouth local authority, like all local authorities in Wales, has benefited significantly from band A. We're now moving into band B and the five-year time horizon for band B of the twenty-first century schools programme remains unchanged.

I am confident that the capital investment we are making in affordable housing—the single greatest investment we will make as a Government—in order to achieve the 20,000 affordable homes that we want to see built during this Assembly term, provides the investment necessary and that we are on track to make sure that it is changed into the provision of that badly needed housing on the ground.

The point that the Member made about the previous phases of the Heads of the Valleys road has been well rehearsed here. There are genuine topographical challenges in that part of the construction. What I've announced today are the further steps we are taking to complete the whole of the Heads of the Valleys road using our mutual investment model.

I didn't mention, he's quite right, the critical care centre, Dirprwy Lywydd, because that is already catered for in funding terms in the plans that the Government has already announced.