Thank you, Llywydd. Whilst this first supplementary budget is relatively limited in nature, representing as it does—if you don't include the pensions money—just over 0.5 per cent of the Welsh Government's budget, it is nonetheless an important part of the budget process, allowing changes to be reported and scrutinised by the Assembly.

I'll turn first to the issue that was raised by most speakers, and that is the issue of the pensions and the £36 million funding gap that exists in terms of the money that was handed down from Westminster. As I mentioned in my written statement to colleagues, I have written to the Chief Secretary to the Treasury expressing deep concerns that the proposed funding doesn't meet the full costs associated with those changes. I did so in partnership with Scotland and with the Permanent Secretary of Northern Ireland. We were very clear that the transparency and engagement that there has been relating to this decision has in no way lived up to the statement of funding policy that has been agreed by the nations. Mike Hedges mentioned the appeals procedure that has been set out. Well, we were very clear in our letter that if a meeting wasn't forthcoming very quickly to discuss these issues with the Chief Secretary to the Treasury then we would jointly be seeking to use that appeals process to take this matter further forward. None of this lives up to the kind of relationship that we were promised that we would have with the UK Government in terms of funding and transparency. It's for that reason that I can't confirm future years' funding either for pensions, because that will be discussed as part of the comprehensive spending review.

Issues were raised around in-year monitoring of the devolved tax forecasts. The Welsh Government will be monitoring the in-year tax receipts information from the Welsh Revenue Authority to inform our developing view of the likely full-year position for 2019-20, and that forms part of our overall in-year financial management system. But, there is little information in-year available at this point to inform revised forecasts, and the situation will develop as the year progresses. The Office for Budget Responsibility will publish revised forecasts for 2019-20, both for devolved taxes and for the associated UK taxes in the autumn. The impact of these revisions on the tax revenues and block grant adjustment will then be taken into account, and you will see them reflected in the second supplementary budget later on.

The issue of the Scotland income tax black hole was also raised. Based on current forecasts, the Scottish Government budgets over the last few years have overstated the net position between devolved income tax revenues and the associated block grant adjustments. As a result, there will be reconciliation payments over the next few years. There was some interest in this during committee scrutiny, and I was able to say that we are in a different position to Scotland in the sense that we have different powers devolved to us in relation to income tax. So, we are less exposed in some ways, and also we have the Office for Budget Responsibility doing our forecasts, as they do across England. So, we shouldn't have that divergence in methodology that is involved in those forecasts. That said, I would not seek to overstate the situation because, clearly, we would want to keep a very close eye on it.

With regard to the M4, the situation is that £20 million was earmarked in reserves this year for the M4, should the decision have been made to make the orders, and that £20 million remains in reserves now to be deployed elsewhere, in terms of meeting our Government priorities. So, there are no additional allocations made in this supplementary budget for costs associated with future steps. However, current estimates are that, for the fast-track measures that the First Minister set out to alleviate congestion on the M4 around Newport, including additional traffic officers, increased live journey time information and a behaviour awareness campaign, the cost will be between £4 million and £5 million over the next two years. We'll be keeping this under review, allocating 2019-20 funding again at the second supplementary budget. I was very clear in committee that the First Minister has made it clear that the commission will have first call on the funding that had been previously earmarked for the M4. Clearly, the commission is about to start its work, so I couldn't be in the position in the first supplementary budget to allocate further funding, or to be clearer in terms of where the funding might be deployed in future in terms of meeting the recommendations of that commission.

There was a great deal of interest in the debate and also in committee scrutiny in terms of the Well-being of Future Generations (Wales) Act 2015, and how we are ensuring that that's very much embedded in our budget-setting process. Of course, the draft and final budgets set out our Government spending plans for 2019-20 and the first supplementary budget builds on those plans and the delivery of our commitments. I'll give you an example of the additional funding for the economy futures fund. One of the streams in that fund is specifically related to decarbonisation, and I know that the Minister has taken a close interest in that in terms of considering how he will deploy those funds. So, it is very much at the centre of our thinking. I've already met with the future generations commissioner in terms of how we improve our consideration of the well-being of future generations Act in our future budget setting, and we're working on developing a journey checker, which, again, I know is something that the Finance Committee has taken a strong interest in, and that work is ongoing. And I've taken an interest, again, in the commissioner's suggestions for additional funding that she would like to see deployed in 2020-21 and I look forward to meeting with her to discuss her proposals further and understanding where she would see those additional funds coming from across Government in terms of refocusing priorities and also understanding better what the carbon savings would be from each of the measures that are proposed. I look forward to continuing those discussions with her.

But, just to close, Llywydd, looking forward, the UK Government indicated previously that it would set budgets for three years through a comprehensive spending review. Our current revenue settlement doesn't extend beyond this year, although we do have a capital budget for next year. But what this supplementary budget does is put in place a firm foundation for the current year. The public finances and terms of our settlement from the UK Government remain uncertain and it could mean that there might be more difficult budgetary decisions lying ahead. Thank you.