8. Debate: The Second Supplementary Budget 2018-19

Part of the debate – in the Senedd at 4:42 pm on 5 March 2019.

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Photo of Rebecca Evans Rebecca Evans Labour 4:42, 5 March 2019

Thank you very much, Llywydd, and thank you to everybody who has contributed to the debate this afternoon. I'll do my best to respond directly to some of the points that have been raised in the Chamber today, and I will be responding formally to the committee's recommendations in due course.

There was a great deal of interest in committee scrutiny regarding the well-being of future generations Act, which the Welsh Government is very much committed to ensuring is at the heart of our budget decisions, and there are a number of key allocations within the budget that progress our commitments in 'Taking Wales Forward' and 'Prosperity for All', which, of course, are very closely aligned to those future generations goals, and those will include: additional funding for the local transport fund, for example, and minority ethnic and Gypsy/Roma/Traveller learners, together with funding for free school meals.

I met with the future generations commissioner just last week to discuss our approach to setting budgets, and I'll be meeting with her again, alongside a senior team of officials, to have a round-table discussion on lessons learned from the last planning session for the budget, to explore how we can go about ensuring that we continue to ensure that the well-being of future generations Act is brought to life through our budgetary process. Certainly, I'll be having discussions with each of my Cabinet colleagues as we go about setting the budget in the next year, in terms of how the financial allocations to those departments will be bringing to life the well-being of future generations Act.

I did acknowledge, in my response to the Finance Committee, that embedding the well-being of future generations Act is an evolutionary process, and that the cultural change required won't happen overnight. But we are absolutely committed to ensuring that those five ways of working are very much the foundation that guides all of our activities. We've certainly, since 2016-17, improved the way that we reflect the way that the Act is involved in our spending decisions in every draft budget narrative, and I would certainly seek to ensure that that process continues, and the improvement continues as we move forward.

Several references were made to the spend on the M4, which is referred to in the second supplementary budget—£27.8 million has been made available for the completion of the statutory process and to support essential activities and investigations in the consideration of the project, such as environmental surveys, for example. It will also cover potential activities that will provide value for money contingent preparations should the scheme proceed. So, examples of that type of expenditure, which I was able to give committee during scrutiny, are ecological survey data, which must be continuous for a number of years prior to construction, for example, and utility diversions that involve materials with long lead-in times and pose high levels of risk to the construction programme, and the halting of those contingent preparations with utilities would incur significant costs and programme implications should the scheme proceed, as the resultant time required would delay those works and other subsequent project works that rely on it. Expenditure also covers matters like the planning inspectorate and legal costs to complete the statutory process required on Network Rail interface agreements, reimbursement of NRW costs and necessary support for affected businesses to develop measures to mitigate impacts should the scheme proceed. 

I can confirm that I have had the necessary discussions that you would expect me to have with officials in terms of understanding the project, exploring issues of affordability and value for money, for example, and issues relating to profile so that I am completely au fait with the options should the decision be made for the project to go ahead. 

In terms of the voluntary exit scheme that was discussed during committee, I was able to give only limited detail of that in committee because this is a process that is currently under way, but I will certainly be sure to update committee in due course. 

On winter pressures, this is a discussion that I will certainly have with my colleague the health Minister in our upcoming bilateral, but I would say that, given the nature, timing and duration of winter pressures, they can vary year by year and by health board area, so there does need to remain that element, I think, of flexibility in terms of allocating additional funding to respond to those pressures. But, again, this is a recommendation from the committee that I will be responding to in due course. 

I really do welcome the committee's support for the Welsh Government's position with regard to a potential 'no deal' Brexit and the expectation that we would have on the UK Government for additional funding to come to Wales. I'm disappointed by the lack of clarity that there is from the UK Government in terms of its position. Of course we have the spring statement next week and the Chancellor has said previously that that could become a full fiscal event, but then I had discussions at the finance quadrilateral recently with the Chief Secretary to the Treasury who said that the spring statement would be a purely administrative event. So, there are different messages coming out from the UK Government, but I do welcome the committee's support for our position. 

Finally, Adam Price did say that this is the final budgetary event in our two-year agreement with Plaid Cymru, and I just put on record my thanks for the constructive way in which Plaid Cymru have engaged with us in terms of our shared priorities that we have identified through the budget-setting process, and again thank Members for their contributions.