Part of the debate – in the Senedd at 2:50 pm on 2 October 2018.
I also intend to consult, Llywydd, in order to bring forward measures as soon as possible to exempt care leavers in Wales from paying council tax until they are 25. Many local authorities already do this, using discretionary powers. I believe that this should apply right across Wales and intend to legislate accordingly.
Now, Members will be aware that the fiscal framework that was agreed in December 2016 included a commitment that a 105 per cent multiplier should be applied to all Barnett consequentials. That has resulted already in an extra £90 million for Wales, and £71 million of that is reflected in this budget.
Finally in this section dealing with how revenue is raised for the budget, I turn to the use of reserves. I explained to the Assembly last year that I intended to make maximum possible use of the new Wales reserve. Thanks to the close co-operation of my ministerial colleagues, I was able to take that reserve into the current financial year at very near its maximum of £350 million. As a result, I have been able to increase the planned draw-down from the reserve in 2019-20 from £75 million, as originally intended, to £125 million, releasing an additional £50 million for public services here in Wales.
Llywydd, protecting front-line services from the worst impacts of austerity continues to be at the heart of the budget of this Labour Government, and that includes, of course, the national health service. In July, the Prime Minister announced additional funding for the NHS in England to mark the seventieth anniversary of the health service. The headline claimed substantial extra funding for Wales. But, as we have learnt, it was always necessary to look beyond those headlines. We still do not know, Llywydd—the Treasury is still unable to tell us—exactly how much extra money Wales will receive.
But this we do know: that almost half the money has already been spent by the UK Government before it even reached our borders. It must fund pay awards and pension changes—decisions made in Westminster and not in Wales. Nevertheless, taken together with the increase already planned, this draft budget now provides more than £0.5 billion additional for the health and social care system, to provide services for Welsh citizens and to support our long-term plan for a healthier Wales.
Llywydd, this Government recognises the pressures local authorities are facing, and we continue to do all we can to shield them from the worst effects of austerity. At the time of the final budget passed by this National Assembly in January this year, local authorities were facing a 1 per cent cash reduction in funding in the revenue support grant for next year—equivalent to a £43 million reduction. We have worked hard during the preparation of this budget to reduce that gap by more than £28 million, so that it now stands at less than £15 million in 2019-20.
At the same time, we have been able to restore funding to a number of grants and have made a series of other funding decisions from which local government will benefit, which together add up to £84 million. This approach is exemplified through the £13.4 million this budget restores to the early intervention, prevention and support grant. We have also listened carefully to stakeholders about the future of the grant and I can confirm this afternoon that it will appear in this budget as two grants, separating the housing-related elements from the remainder. Further details about these new arrangements will be available to Members tomorrow.
Llywydd, addressing child poverty is a key commitment across this Government. This budget contains a package of £12.5 million to tackle child poverty in Wales. This includes £2 million additional funding to expand the discretionary assistance fund, which is struggling to meet demand, largely as a result of the UK Government’s draconian programme of welfare cuts. That is money that goes directly to the poorest families here in Wales. It also contains more than £3 million to maintain and double the pupil development grant access scheme to help parents meet the everyday costs associated with sending their children to school. Here in Wales, we will provide £7 million additional funding as we move to provide thousands more children with free school meals.
Llywydd, I turn now to capital expenditure. The draft budget before Members today includes both revenue and capital additions to each departmental expenditure limit for 2019-20, including allocations over and above those announced in May of this year alongside the Wales infrastructure investment plan. I now set out the departmental expenditure limits across the Welsh Government.
As a result of today's draft budget, the total health and social services main expenditure group now stands at £8.2 billion, an increase of £330 million on previously published plans, including an additional £287 million for the health and social care system, and an extra £41 million in capital to support NHS improvements and the modernisation of the ambulance fleet.
The total local government and public services MEG stands at £5.4 billion, an increase of £123 million, including an additional £35 million in capital in support of the social housing grant, and £20 million for a local authority road refurbishment programme as part of £60 million over three years to repair the damage associated with a harsh winter and this year's hot summer.
The economy and transport MEG stands at £1.3 billion, an increase of £129 million, including capital funding of £26 million next year as part of a £78 million package for the local transport fund, and £10 million next year for the Tech Valleys programme.
The education MEG stands at £1.9 billion, an increase of £68 million, including more than £30 million additional funding for schools and a doubling of investment, as I said, in the PDG access fund.
The energy, planning and rural affairs MEG stands at £364 million, an increase of £34 million, including an extra £17 million in our waste programme, through a combination of both revenue and capital, and it will allow the Cabinet Secretary concerned to maintain funding for national park authorities across Wales.
Llywydd, as we move through these uncertain times and as the financial difficulties deepen, this Government remains committed to do everything we can to help our public services meet the very real challenges they face today. This is a bread-and-butter budget, focused on sustaining the fabric of Welsh life and using every source of revenue and capital available to us in order to do so. I commend it to Members this afternoon.