Public Spending Figures for the Nations of the UK

1. Questions to the Cabinet Secretary for Finance – in the Senedd on 5 December 2018.

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Photo of Joyce Watson Joyce Watson Labour

(Translated)

7. What assessment has the Cabinet Secretary made of the most recent public spending figures for the nations of the UK? OAQ53056

Photo of Mark Drakeford Mark Drakeford Labour 2:13, 5 December 2018

I thank Joyce Watson for that. The figures show that investment in health and in social services and in education grew faster in Wales in 2017-18 than in any other UK nation. 

Photo of Joyce Watson Joyce Watson Labour 2:14, 5 December 2018

I was interested to listen to the news bulletins yesterday morning, but dismayed to learn that spending in vital care services for elderly people in England has been cut by 25 per cent per person since 2010. That, of course, hasn't happened in Wales, because the Labour Welsh Government has protected those budgets, and I'm extremely proud of that, and I'm sure everybody would want to join with me in celebrating that fact. But, from next April, a portion of the income tax paid by people in Wales will directly fund Welsh public services. How will that free up Welsh Government to go further in terms of prioritising those vital front-line services?

Photo of Mark Drakeford Mark Drakeford Labour

I thank Joyce Watson for that important question. She's absolutely right—that is what the figures produced by the UK Government demonstrate, that despite the impact of austerity and the very real challenges that that poses for public services, we have protected spending in local authorities and spending on elderly services to an extent certainly not seen across our border, and spending per head on health and social services in Wales combined last year increased by 3.8 per cent, and that was the highest increase of any of the four UK countries.

Joyce Watson is absolutely right to point out that the new fiscal responsibilities we have bring with them some new opportunities. She will be aware of the report of Professor Gerry Holtham, looking at the possibility of a social care levy here in Wales. The Cabinet has a sub-group set up, chaired by my colleague Huw Irranca-Davies, bringing together Cabinet colleagues to see whether it would be practical to take some of that analysis and to put it to work in Wales using our new fiscal possibilities to support our ambitious policy agenda.

Photo of Mark Reckless Mark Reckless Conservative 2:16, 5 December 2018

Could the Cabinet Secretary confirm the funding floor guarantee that the UK Government has provided in respect of spending in Wales, and compare and contrast that to any funding floor that was in place under previous Labour Governments in the UK?

Photo of Mark Drakeford Mark Drakeford Labour

I thank the Member for that. The fiscal framework does include a multiplier—it's 105 per cent. I think the leader of the opposition yesterday suggested it was 120 per cent, but it's actually 105 per cent. For every £1 that is spent in England, we get 105 per cent of that through the Barnett consequentials. That's amounted to £70 million so far for Wales. With the additional money for health—[Interruption.] No—[Interruption.]

Photo of Elin Jones Elin Jones Plaid Cymru 2:17, 5 December 2018

Allow the Cabinet Secretary to answer the question.

Photo of Mark Drakeford Mark Drakeford Labour

I think I'm—[Interruption.] Yes, yes. The point that the Member asked me was whether there is a mechanism in the fiscal framework that guarantees that Wales gets a fixed percentage of the funding that is announced in England. The answer is that it does. That has given us £70 million additional so far, following the signing of the fiscal framework, and, if you take into account the promised additional funding for the NHS over the next few years, that will give us £270 million beyond what we otherwise would have had without the conclusion of that agreement. 

Photo of Elin Jones Elin Jones Plaid Cymru

(Translated)

Question 8, Darren Millar.