10. Debate: The Draft Budget 2019-20

Part of the debate – in the Senedd at 6:25 pm on 4 December 2018.

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Photo of Mark Drakeford Mark Drakeford Labour 6:25, 4 December 2018

Dirprwy Lywydd, I know that Members across the Chamber are interested in support for rates paid by small businesses. Three quarters of businesses already receive help with these costs from the taxpayer here in Wales. In his budget on 29 October, the Chancellor of the Exchequer announced that he intended to introduce a scheme of high street relief, a scheme, of course, that we have had in place in Wales for the last two years. The introduction of a scheme in England, however, brings with it a funding consequential for this National Assembly. I confirmed to the Finance Committee last week that I intended to apply the full £26 million consequential to support businesses in Wales next year.

Today, Dirprwy Lywydd, I can go further to inform Members that I intend to use the bulk of that money to provide an expanded and more generous development of the existing Welsh scheme, retaining the basic parameters, which I agreed at the outset with the then finance spokesperson of Plaid Cymru. I expect to be in a position to announce the full details of the scheme very soon. And, Dirprwy Lywydd, because I recognise that any national scheme may leave some anomalies at a local level, I also intend to increase the funding to local authorities further to boost their ability to respond to particular needs of ratepayers in their localities through the discretionary rate relief scheme that local authorities operate in every part of Wales.

Finally, Dirprwy Lywydd, in this part of what I have say, to note a further element in the agreement we have with Plaid Cymru in this second year of the two-year budget agreement we reached on a package of measures last year, where we have mutual policy interests. The draft budget of 2 October contained an additional £2.7 million to upgrade both Urdd camps at Glan-llyn and Llangrannog. 

Today, I can let Members know that I intend to double the amount of capital funding set aside in next year's budget to take forward the results of feasibility studies agreed between our two parties, from £5 million to £10 million. I do so because of the progress made in producing those studies. The culture Minister last week updated the Assembly about the feasibility studies for a new contemporary art gallery for Wales and a new football museum. The feasibility study for a national archive for Wales will be available by spring next year. Both our parties want that work to be able to be taken forward and this significant additional capital, which I announce this afternoon, will help to make that happen.

Finally, Dirprwy Lywydd, to the third part of what I'm going to say in this part of the debate and, particularly, to provide a preliminary response to the recommendations of the Finance Committee. I will, of course, provide a formal written response to the committee in advance of the vote on the final budget in January next year. This afternoon, I wanted to say immediately that I accept the first of the recommendations of the Finance Committee's report that we retain the current practice of a two-stage budget process for next year. I intend, additionally, to follow the committee's advice in relation to Her Majesty's Revenue and Customs and the Office for Budget Responsibility, and will be pleased to provide the committee with any renewed memorandum of understanding in relation to independent tax forecasting as the committee's report suggests. 

Dirprwy Lywydd, much attention has been given during the scrutiny process across Assembly committees to preventative spend. I hope the definition of prevention, arrived at in consultation with third sector bodies, Public Health Wales, the fire service and others, has helped in this year's round, and I look forward to further refinements of it in discussions with committees and others. It is certainly not intended to be the last word on this matter, and I'm confident that the scrutiny process will allow us to take that definition further. The future generations commissioner has taken a particular interest in prevention, alongside other aspects of the budget, and I thank her and her team for the advice provided on the application of the Well-being of Future Generations (Wales) Act 2015 to the budget-making process, and therefore to the Finance Committee for their recognition of the additional steps taken this year to bring about the cultural change necessary within the Welsh Government to embed the Act in all we do.

Llywydd, the final recommendation of the committee returns me to where I began this debate this afternoon, by noting the need for budgetary flexibility in response to Brexit, and of course I agree with that recommendation. The next few weeks could see decisions made that will have a deep and lasting impact on the resources available to this National Assembly to discharge the responsibilities devolved to Wales. That uncertainty has hung over the whole of the budget process this year, even as we in the Government remain committed to doing everything that we can to help our public services meet the very real challenges of today, while acting to improve the prospects for Welsh citizens in the future. That's what this budget does, and I ask Members to support it this afternoon.