6. Debate: The Final Budget 2019-20

Part of the debate – in the Senedd at 5:08 pm on 15 January 2019.

Alert me about debates like this

Photo of Rebecca Evans Rebecca Evans Labour 5:08, 15 January 2019

Thank you very much, Deputy Presiding Officer and thank you to everybody who's contributed to the debate this afternoon. I think there have been several key themes that have come to the fore during the debate. Of course, the first would be austerity, because the pressures inflicted upon us by almost a decade of the UK Government's state-shrinking austerity ideology have been extremely damaging. There are firm shackles on our ability to invest in our much valued public services. We have used what little additional funding the UK Government has provided, but we of course haven't seen the end to austerity, as was promised by the Prime Minister. 

In response to Nick Ramsay, I can provide assurances that we have used consequential funding from the UK Government specifically to open up and widen our rates relief schemes, which we do provide for small businesses, because we recognise how important they are, not just to the high street but to local economies more widely. I would refute any suggestion that there is a blame game here, because the fact remains that when you ask people are they feeling the brunt and the effects of austerity in their lives, I think you don't need to have to go any further than the food banks that are popping up, up and down our country, to talk to people who are absolutely most definitely feeling the effects of austerity. They're not interested in a blame game, they're interested in what's best for their families and how they can meet their families' needs without struggle.

We often hear from the Conservatives how we have the biggest budget in cash terms. Of course it is true that the 2019-20 budget is the highest ever in cash terms, but it is a completely meaningless statement because since 1948—so, the past 70 years—public sector expenditure across the UK has increased in cash terms every single year except for one, so, in that way, every single year almost is a record-breaking year for UK public spending on that basis. However, by contrast, the UK budget allocation to Wales has actually seen cash reductions in three of the last 10 years, so that does put the challenges that we face into some kind of perspective.

The second theme, really, would be about Brexit, which we've talked about a lot over the course of the afternoon. And a decade of austerity combined with the increasingly grave threat of a 'no deal' Brexit will have a disastrous impact on Wales. We've heard today of some of the ongoing planning but also about some of the ongoing uncertainty, which really does hamper our ability to plan for next year and beyond. But we will do everything in our power to protect businesses and communities from the potential impact on our country. And, of course, I've announced some further investments this afternoon.

A third theme, really, is uncertainty, and the uncertainty surrounding Brexit is compounded by wider uncertainties stemming from the UK Government's lack of action and foresight. We don't have a funding settlement beyond next year, and obviously we face then the prospect of a comprehensive spending review and, potentially, an emergency UK Government budget. So, that clearly does restrict our ability to plan ahead and to provide stability for people and organisations who depend on our support.

And the fourth theme, which I think has come out very strongly in this debate, is about investing in our public services. Despite these challenges, we do continue to deliver in difficult times, and the motion before Members today will secure a budget that provides some protection for our public services, because we are investing in our priority areas: health and social care, education and local government. And I completely recognise the challenges that local government is facing, and I know my colleague Julie James will be talking on this next in the Assembly.

But I have to say that the debate really in terms of health and local government as being in opposition to one another I don't think is helpful, because the two things rely completely on each other. I'm very grateful to Huw Irranca-Davies for mentioning regional partnership boards and the important work that's going on there about pooling budgets and making the most of resources and thinking creatively and doing things in a different way. And I think that that's where we should be turning more of our attention to in the future.

I fully take on board the points that the Chair of the Finance Committee has made in terms of the timing of Government responses to committee scrutiny, and I'd be happy to have a further conversation on that. I know that the Finance Committee has indicated that they would prefer to continue the current practice that we have of publishing the draft budget ahead of the autumn budget. I know that Welsh Government has said that they're happy to consider suggestions from the Finance Committee if they'd prefer to do it in a different way, although I think that, in Scotland, for example, they publish their budget after the autumn statement. Our concern would be that that kind of delay might make things more difficult for the partners that we have, but, irrespective of that, we do need to ensure timely responses to committees.

So, Llywydd, I look forward to tackling the opportunities and the challenges that we face together and, in doing so, I'd be very keen to continue the engagement that the First Minister has had with the Future Generations Commissioner for Wales in terms of setting budgets for future years. I know that they had some good discussions this year and they've been working together on how we define 'preventative spend', for example. I know that that's something that we're interested in right across Government.

So, to conclude, this is a budget that meets the needs of the people of Wales, and it does reinforce our vision to build a better Wales, a Wales that is prosperous and secure, healthy and active, active in learning, united and connected, with prosperity at the heart of everything that we do. It's a budget that provides protection in the face of the harmful policy of austerity and a budget that provides stability in the face of the continuing uncertainty and the prospect of a catastrophic 'no deal' Brexit. It is a budget that values and invests in our public services and a budget that I hope the Assembly will endorse this afternoon. I commend the motion to you.