6. Finance Committee Debate on the Government's spending priorities

Part of the debate – in the Senedd at 5:15 pm on 25 September 2019.

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Photo of Dawn Bowden Dawn Bowden Labour 5:15, 25 September 2019

I thank the Finance Committee for bringing forward this report. I'm not a member of the committee, but, obviously, I have an interest and remain concerned that there are a number of uncertainties that continue to surround the recent UK spending round—for example, the fact that a long-term solution to the funding of social care was, once again, not addressed by the UK Government. While we seek to find our own solutions to that challenge, it would help to know exactly what the long-term funding plans of the UK Government are in that respect. I think that is a major failing of the recent UK spending plan, and it casts a shadow over one of the key long-term challenges that we face here in Wales.

However, here in Wales I do welcome the indication given by the Minister in the Chamber only last week that, in addition to the priority that we're rightly giving to the Welsh NHS, we do intend to look carefully at the best possible settlement for local government. There are many discussions about the ways in which money is spent on local services, but it's apparent to all of us that, despite far more generous settlements in Wales compared to England, our councils are, nevertheless, under severe pressure, and we must take further steps to seek to sustain local services. Sadly, we know that a one-year UK spending plan is all about short-termism, ditching long-term strategy and ambition for a few short-term populist announcements. So, in spite of what stakeholders told the Finance Committee, from what I read we may still be facing some of the limitations on our actions due to that UK plan only covering the year 2020-21. 

Now, as others have already said, we know that focusing on prevention in health and care, and looking to longer-term planning in our public spending, is an established track record on which the Welsh Government can build. So, alongside the uncertainties that we face, perhaps this forthcoming Welsh budget can drive further shared priorities between the Welsh Government and local government. Because if both believe that spending for a clear long-term purpose is the right thing to do, then clearly a new bargain should be made in order for us to make that common purpose with local government, whether that lies in the debate around school and education or the demands for social care, including looked-after children, or the provision of vital leisure services that can deliver things like social prescribing, which, in the longer term, helps to alleviate some of the ever-growing pressures on the NHS. If there's a common purpose, then let it be a common bargain to deliver those priorities through local government.

Now, because of the short-term nature of the funding settlement that we're facing this year, now may not be the time to consider this, but I do wonder whether we should start thinking more about health and social care not just as an integrated portfolio for a Minister, but also in the reality of joint budgets to deliver a more agile, responsive solution in those vital health and care services. I think that was the point that Rhun was alluding to in his contribution, in terms of how we deliver those integrated services. As I say, this may be a longer-term consideration that we have to come back to, but today I think the overriding message for this budget round has to be to give local authorities the ability to not only function, but to start recovering and deliver those local services that have been so badly hit by the harsh years of austerity. We might only be able to start that process this year, but even the longest journey has to start with a single step.