5. What discussions has the Minister had with UK Ministers on the need for an emergency budget in the event of a no-deal Brexit? OAQ53515

I met the Chief Secretary to the Treasury on 15 February and pressed for clarity on Brexit-related financial issues, including the possibility of an emergency budget. The message was clear: a full fiscal event is not on the agenda, adding to the uncertainties facing us.

I welcome the fact that both the Minister in front of us and her Scottish counterpart have both now raised it directly with Liz Truss, the relevant Minister, in their discussions, but I'm very disappointed with the response. Back on 28 October last year, Philip Hammond, the Chancellor, made it clear in response to an interview that there would indeed be need for an emergency budget in the case of a 'no deal' Brexit. Because the economy is expected to contract—we don't know how much, but it will contract—there will need to be an expansionary budget. It is not for the Welsh budget to pick up the pieces of that; it's for the UK Treasury to pick up those pieces. Now, if Philip Hammond feels that—and he surely would be the person that knows, although I note that within 24 hours No. 10 had slapped him down—then, surely, as part of the 'no deal' planning, the UK Government, the Treasury, Ministers and others must be working through the options of a 'no deal' could also mean the case that they have to pump money into the economy. It seems ridiculous that they're not considering that possibility. 

Thank you, and I completely agree with every word that you say, and I would be horrified if they were not working through every possibility in terms of the measures that the UK Government could take in terms of supporting the economy in the event of a disastrous 'no deal' Brexit. We've been clear, time and time again—and I'm grateful for the support of the Finance Committee, and for yourself and for Members of the Assembly who have been making the case to the UK Government—that an emergency budget must be forthcoming, additional funding must be forthcoming, in the event of a disastrous 'no deal' Brexit.

Well, Minister, I have to say I find it a bit rich that you're warning about the disasters that would follow from a 'no deal' Brexit. I agree there would be incredible dislocation and we don't know how deep that would be, and I would never take that risk, but the only way to prevent that is to have a deal. There's only one deal that's been negotiated by the British Government and—remember—by the European Union, and, if that deal doesn't go through, then the sort of disaster that you're predicting is going to be more and more likely. Your duty is to row behind the UK Government at the moment, and get this deal through.

With respect, I think our duty as a Welsh Government is to ensure the best possible future for the people of Wales. A 'no deal' Brexit certainly isn't that. Welsh Government, alongside Plaid Cymru, worked very quickly following the referendum to set out what a best possible Brexit would look like for the people of Wales in 'Securing Wales' Future'. The UK Government has only managed to deliver on a small part of what we set out would be the best possible way forward, and, actually, our plan has remained incredibly robust in terms of the kinds of challenges that we're facing and the discussions I think the European Union would have been open to having, had the UK Government had the sense to follow our plan.