Diolch, Llywydd. I move the motion for the first supplementary budget. This is the first opportunity to amend budgetary plans for the current financial year, which were published and approved by the Assembly in January. 

The first supplementary budget is often quite narrow in scope, and this year is no exception. It regularises a number of allocations from our reserves and transfers between portfolios. It includes adjustments to the overall level of resources available to Wales, reflecting transfers and consequentials received from the UK Government, and it reflects changes in annually managed expenditure forecasts in line with the latest details provided to HM Treasury. It nevertheless represents an important part of the budget and scrutiny process. I’d like to take this opportunity to thank the Finance Committee for its consideration of this budget and I’ll respond to the Chair on the committee’s report in due course.

In-year supplementary budgets build on the plans set out in the draft and final budget. However, supplementary budgets have a greater focus on the pressures and opportunities that arise in-year. Not all will have arisen as a result of the Welsh Government's strategic objectives, but may be things that require interventions that impact on the budget. Indeed, by far the largest allocation made in the supplementary budget of £241 million relates to meeting the additional costs of public sector pension schemes. The costs arose as a result of decisions taken by the UK Government that placed additional financial pressure on our already under-pressure public services from April 2019. On 7 March, I announced that additional funding would be provided to public sector organisations affected by the change. Since then, the UK Government has confirmed the level of funding it will provide is less than the costs that public sector organisations in Wales will have to meet. I have written jointly with the other devolved administrations to the Chief Secretary to the Treasury expressing our deep concerns that the proposed funding does not meet the full costs associated with the self-imposed changes by the UK Government. This is unacceptable and undermines the statement of funding policy and the principles for allocating funding within the UK. 

This budget includes capital allocations of £85 million to provide confidence and certainty to businesses in Wales at a time when both are in short supply as a result of the UK Government's failure to put an end to Brexit uncertainty. It funds a range of projects that can be delivered quickly in-year, providing economic benefits that are aligned to our priorities, and can stimulate wider economic demand at a time when it's needed most. Fifty million pounds is to be invested in local government social housing programmes, delivering up to 650 homes across Wales, making a significant contribution to our key priority of increasing the supply of good-quality affordable housing across Wales. Twenty million pounds is allocated to support local authorities, with whom we will work closely to discuss the best use of funding to provide economic stimulus to the local areas. The remaining £15 million will support the economic action plan through the economic futures fund and the additional funding for transport.

£11.4 million is allocated for 2019-20 from the EU transition fund. Through the fund, the Welsh Government has supported interventions that add value and are in addition to UK Government's obligations, in line with our priorities identified in 'Securing Wales' Future', and will help us identify Welsh solutions to Welsh problems. The fund has been designed to help businesses, public and third sector organisations prepare for Brexit.

As a result of the changes in this supplementary budget, the revenue reserve stands at £178 million, with capital reserves at £100 million for general capital and £191 million for financial transaction capital. Over the coming months, I will, of course, carefully monitor our financial position and continue to explore with colleagues the case for in-year allocations from reserves. This will allow us to respond, where necessary, to possible further pressures on the budget and manage the carry forward of funding through the Wales reserve. Any further allocations from reserves this year will be reflected in the second supplementary budget.  

I'd like to thank the Finance Committee once again for their scrutiny of this supplementary budget, and ask Members to support it.