3. Statement by the Cabinet Secretary for Finance: The Draft Budget 2019-20

Part of the debate – in the Senedd at 3:05 pm on 2 October 2018.

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Photo of Nick Ramsay Nick Ramsay Conservative 3:05, 2 October 2018

Okay. Turning to the all-important spending commitments, I welcome the news that the NHS is the top priority for the Welsh Government. I’m glad that the Welsh Conservative message has finally hit home after years of us saying—and Angela Burns saying—that the NHS should be properly funded, and not just in cash terms as in the past but in real terms that mean the proper protection of the health budget that we need to see. The NHS is the people’s priority and it should be ours as politicians too. If I can ask you about the seventieth anniversary NHS cash injection that has been promised in England, have you had discussions with the Treasury about what this will mean for Wales in terms of consequentials? The same question applies to the extra funding for social care, which it appears the UK Government is committing across the border. If we don’t know until pretty late what the sums are then surely it will make it difficult to make the most of that money in the coming financial year, when we would like to see it implemented. 

If I can turn to your comment on transport and motorists across Wales, we'll welcome the additional—I think it was £60 million that you pledged in funding for roads over a three-year cycle. I think we're all aware of the problems that local roads are facing and the shortage of funding in local authority gaps to deal with the problem. Two questions relating to this: will this extra cash be ring-fenced for roads, and, if local authorities are facing cuts to their RSG, which we know they inevitably are, then how will you ensure that road budgets will not be cut elsewhere and you will not, effectively, be giving with one hand and taking with the other?

You mentioned the fiscal framework. Along with you, I warmly welcome the apparent uplift in the Welsh budget due to that. It was limited, admittedly, but it's better than the position that we were in before, and I think it's to be welcomed that that agreement between you and the UK Government is now delivering for Wales and delivering—albeit modest in the early stages, it is delivering an uplift that will stand the Welsh budget and Welsh economy in better stead in the future. I'm delighted to hear of the success of that.

I'm also delighted to hear the announcement with regard to care leavers and removing them from council tax, putting that on a statutory footing. That is to be warmly welcomed, a great decision. I'm a little bit more concerned about your proposal to remove charitable rate relief from independent schools and private hospitals, not that I either attended an independent school or have private healthcare, I should point out. However, I would point out that my concern is more in relation to the state sector, because we know full well that the private sector takes some of the strain that otherwise might be borne by the state sector—[Interruption.] Well, it does. And, in that case, I just want to ask: what consultation are you having with that sector before finalising this decision to make sure that there will not be unforeseen consequences? I think that's important.

If I could just move to close by talking about the broader point about today’s budget—. It's called 'A Budget to Build a Better Wales', the latest in many titles we've had in many budgets over the years, which haven't always delivered exactly what they promised. There’s very little indication of how these draft budget proposals fit in with the Welsh Government’s programme for government, its longer term strategy, or indeed the future generations legislation, which we are all supposed to be paying great heed to. Now, I appreciate that planning has been complicated by the Brexit timetable leading up to next March and also, as you said, this is phase 2 of a two-year budget-setting process, but a budget should be more than just a tidying-up exercise; it should set out a pathway to the future and it should provide vision and ideas. Some more details on the development of the metro, for instance, and infrastructure projects would be welcome—and also the possibility of a north Wales metro as well. 

Now, perhaps, after 20 years in Government, a degree of malaise may well have set in or perhaps, Cabinet Secretary, you are holding back—[Interruption.] I wasn't looking at you, Alun. Perhaps you are holding back some of your best ideas until December; that's understandable. Whatever the reason, I think we would all appreciate more of a long-term plan and less of a knee-jerk reaction to spending pressures. That’s going to be particularly important in dealing with pressing issues, such as social care.

So, in conclusion, Presiding Officer, whilst Welsh Conservatives welcome aspects of this budget, such as the funding for the NHS and our transport infrastructure—those are much needed and to be welcomed—there are some very big question marks over this budget, this bread-and-butter budget, as you called it, which is on offer today, and I think the big question is: will it really be followed by jam tomorrow?