Part of the debate – in the Senedd at 2:51 pm on 19 February 2019.
Thank you very much for raising this. The issue of school budgets has been one that has been well rehearsed in this Chamber, as has been our frustration with the lack of information forthcoming from the Treasury. Earlier this month, the First Minister wrote jointly with local government leaders to escalate the issue of the increased cost of teachers' pensions directly to the Chancellor, and we have only now had a response to our request for clarity around the UK Government's pension changes and funding for these costs in Wales, following requests that actually date back to last October.
So, the UK Government's response is very late in the day, just as public sector bodies are trying to set their budgets for 2019-20, and I had the opportunity to raise this directly with the Chief Secretary to the Treasury when I met her last Friday. In my discussions with her, she did agree to provide me with some further detail. I am awaiting this, but expect it shortly. When we have that final detail, we'll be able to work through what it means for our public sector bodies, and I hope to provide them with as much clarity as possible as soon as possible. But I would confirm that, as previously indicated, my intention to passport on any funding we receive for this purpose to public sector bodies in Wales to assist them with these costs remains.
I share your ambition for local authorities to be building council houses at scale and at pace, and you'll be aware that, as part of our housing pact with Community Housing Cymru, and as part of our efforts to meet the 20,000 affordable homes target, local authorities are expected to deliver around 1,000 of those new homes. I look forward very much to hearing about the outcomes of the affordable housing review, which will also look at how we can support local authorities to start building at scale and pace.
I know Mike Hedges has raised the issue of the borrowing cap several times in the Chamber, and I'm pleased to confirm that officials have been in contact with our local authorities, and all 11 local authorities who were subsequently subject to the voluntary agreements that enabled them to exit the former housing revenue account subsidy system have now agreed that they would like those voluntary agreements to be terminated. So, I'm very much looking forward to local authorities starting to build at scale and pace.