6. Debate: The Final Budget 2019-20

Part of the debate – in the Senedd at 4:41 pm on 15 January 2019.

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Photo of Nick Ramsay Nick Ramsay Conservative 4:41, 15 January 2019

Can I thank the Minister for her contribution to today's debate—and, indeed, the briefing that you provided me with earlier in the footsteps of your predecessor? I appreciate you've come in almost towards the end of this budget-setting process, so I don't expect you to be an expert on everything. It was good to see, however, that the blame game with the UK Government continues apace as it did before. No Welsh Government debate seems to be complete without blame towards the UK Government and what's happening in England, but there we are.

It won't surprise you to hear that the Welsh Conservatives will not be supporting this budget today. On the bright side, this year, the Welsh Government will be in control of the biggest budget since devolution, at over £16 billion by 2020. Even before adjustments for tax devolution, the Welsh Government has more scope to spend money where it matters. For the first time, the Welsh Government will be able to raise £2.1 billion in taxes, as we've heard from the Minister. The abolition of the Severn bridge tolls will benefit the south Wales economy by over £100 million a year. Those aren't my figures; that's the Welsh Government's own estimates. The fiscal framework agreement between the UK and the Welsh Governments is delivering for Wales. Within the 2018 budget, more than £550 million of extra money has been pledged to the Welsh Government, as well as over £100 million for a north Wales growth deal, which will generate investment, jobs and prosperity in the region. And, of course, we've got continued support for a mid Wales growth deal.

Now, whilst we accept that the Welsh Government ship has been sailing through challenging times, Government is about priorities and it is now the role of the Welsh Government to ensure that consequentials from the UK Government's budget do find their way to the areas that matter, and, most importantly, to the front line. The Minister mentioned the NHS, the Welsh people's priority, and our priority too—at least, it should be here. The Welsh Government are finally heeding Welsh Conservative advice from a number of years ago that we should be increasing funding to our health service. We know that between 2011 and 2016 the health budget was not protected in real terms and, as a result, we are playing catch-up. But we are where we are. The Welsh Government will receive an additional £550 million in their budget. As I say, there will be an NHS funding uplift along with increased pay for NHS staff and a pay award for staffing there.

The final budget does not fully address the significant concerns outlined by committees. We've heard the comments from the Chair of the Finance Committee. I do welcome the additional funding for Natural Resources Wales. We know the difficulties that that organisation has been through over recent years, having its accounts qualified for yet another year running. Can we have an assurance that this money comes with conditions, and that the Public Accounts Committee's recommendations will be fully implemented so we can avoid some of the havoc that we've seen over recent years in that organisation?

The Minister has outlined some of the changes between the draft and the final budgets, and I'm pleased that the Welsh Government has decided to spend some extra £13 million on the local government settlement—you mentioned that would be coming up later—which provides local authorities with some more money. Still, in many cases, these are cash-flat settlements. We're not looking at real-terms protection. But, nonetheless, it is finance that will be welcomed by local government across Wales.

You've mentioned support for businesses. There are UK Government consequentials available for high street rates relief. I know we've had discussions in this Chamber about the form that that relief might take. We have had numerous warnings and reports over recent years on the state of our high streets and the problems that they face, so we look for assurances that the Welsh Government will provide the sort of fair rate relief that businesses have been crying out for.

If I can just mention social care, whilst there has been additional funding for social care, which is to be welcomed, this falls far short of what we all believe is needed to keep pace with demand over future years. Projections suggest that there will need to be a near doubling of spend on local authority social services for older people between 2015 and 2030. The WLGA estimates that there will be £344 million-worth of service pressures in social care by 2021-22, the subject of a recent Finance Committee report and debate in this Chamber.

Briefly, on housing, I welcome the new self-build proposals that you mentioned to me earlier, Minister; that's really innovative and to be welcomed. I think we all agree that in the light of recent debates on housing, we certainly need to increase the housing stock available in Wales and the level of appropriate housing as well. So, we welcome innovative proposals. Whatever happens, we do need to see an increase in the housing stock, and most importantly in housing stock of the affordable housing variety.

I haven't mentioned the future generations legislation—I know I haven't got time to—and you mentioned the commissioner. In the past, we've called for budgets that tie in with the future generations legislation and put Wales on a sustainable footing for the future. We do need to see budgets do more of that over the future, so I urge you and the Welsh Government to make sure that budgets here are sustainable both now and into the future.