Diolch, Dirprwy Lywydd. I very much welcome today's debate, and I thank the Children, Young People and Education Committee, the Equality, Local Government and Communities Committee and the Finance Committee for their joint report assessing the impact of budget decisions. I also thank all Members for I think what has been a really constructive debate, and certainly plenty of challenge and lots for me to think about as we start through the process of setting our budget for next year. We've long been committed to improving how we assess and maximise the impact of our budget decisions and, as Members know, I've accepted in full or in principle all of the recommendations. I welcome this opportunity to discuss them in the Chamber. 

So, Welsh Government was the first Government in the UK to publish an equality impact assessment of our spending plans back in 2011, and it was a step beyond our statutory requirements and was a demonstration of our determination to continue to strengthen and improve our approach, one that means we've taken an increasingly sophisticated approach to considering impacts. Building on feedback from both the Finance Committee and the budget advisory group for equality, we developed a strategic integrated impact assessment, or SIIA, which we first published with the draft budget in 2015-16. 

The SIIA was developed to consider spending decisions through a number of lenses, to understand their impacts on different groups of people, and these include: children's rights; Welsh language; socioeconomic disadvantage; and sustainable development. The introduction of the Well-being of Future Generations (Wales) Act 2015 has also shaped our approach since its introduction in 2015. Through taking an integrated approach, our aim has been to develop a wider understanding of the cost-cutting pressures and opportunities that exist across key service areas, in line with our priorities and target funding then when it's most needed.

I recognise the reference to the work that has gone on in New Zealand. We've taken a close interest in that, and our officials have spoken to officials in New Zealand. I do have to say there is already a great deal of similarity in terms of our approach through our well-being of future generations Act, and what we do through our strategic integrated impact assessments—very similar in terms of the decision making and the duties that are on us in terms of things that we must look at.

Our approach has evolved too as we've embedded the new fiscal landscape. We've set out our approach to tax and its principles for Welsh taxes in the tax policy framework, and these include the key principle that Welsh taxes should raise revenue to support public services as fairly as possible. They should be developed through collaboration and involvement, and contribute directly to the well-being of future generations Act goals.

It's also important to acknowledge how the SIIA fits within the wider impact assessment landscape, and there is of course an impact at the level at which we set the outline budget, but it is at the level of detailed decisions that are taken by Ministers that link more closely to the impacts that people and communities will feel. That's why for the first time last year we published an SIIA to accompany both our outline and our detailed budgets. 

Effectively assessing the impact of policies from an early stage and throughout their development is a central part of policy making, and in this context the Welsh Government has worked to develop and streamline existing impact assessments into a single integrated framework to guide policy and legislative development. Framed by the well-being of future generations Act, this work led to the launch of the integrated impact assessment tool in 2018, and that tool helped decision makers understand the potential impact, both positive and negative, of policies from an early stage and throughout their development. And I have to say, there's been very good feedback in terms of how the tool is being used and the way in which it has challenged thinking as policies have been developed, and it's being used at an early stage in order to make sure that the decisions that Ministers are asked to make are well informed and well developed in terms of the impact they might have on different groups. This, though, is very distinct from the role of the strategic integrated impact assessment of the budget, which sets out how impact considerations have informed the strategic budget allocations that have been taken as part of the annual budget process. But we do remain committed to evolving our approach, and as we further integrate our tax and borrowing powers, we're exploring how different approaches can better inform our consideration of impact, including assessments of the impact on households and individuals in Wales, and these are some of the ideas that we're taking forward as we consider what we can do to continue to improve the way in which we address this work.

Aligned with our gender equality review, for example, as part of the budget preparations for this year, we're looking at gender budgeting. Learning from the Nordic nations, we're exploring how a gender budget approach could help us better understand the impacts of our decisions. Additionally, we're exploring how we can use a working definition of 'prevention', which was agreed with the future generations commissioner in the 2019-20 budget to help us shift activity upstream in terms of our budget decisions.

The Welsh Revenue Authority has also been developing a preventative approach through working with representatives, partner organisations, taxpayers and the public to make it easier for people to pay the right amount of tax first time. And as we've heard, this year we're also reviewing the process of our integrated impact assessment tool on policy decisions, and as part of this review, we will continue to engage with those external bodies and commissioners who have been involved in the development. I'm intending to meet with commissioners as we go about setting our budget for the next year, so I'll make sure that I take those opportunities to discuss with them what more we can do to improve our impact assessments.

I've had a good meeting already with the Equality and Human Rights Commission, and we had some good discussion as to what improvements could be made. I know that they continue discussions with officials. The symposium that John Griffiths referred to was attended by my colleague the Deputy Minister and Chief Whip, and I know that she'd be very happy to provide you and all Chairs with an update on the discussions that were had there.

We had the opportunity yesterday to discuss the outlook for public finances and the unprecedented challenges that we face as we develop our spending plans for the future. And with the very real prospect of continuing spending constraints and a 'no deal' Brexit potential outcome as well, it's more important than ever that we appraise the impacts, both positive and negative, of changes on our spending plans, to help us target our increasingly scarce resources on those actions that we know will have a maximum impact on people and their well-being in Wales. So, I really welcome what has been a really constructive conversation, and I know that the engagement will continue as the budget process evolves this year.