Part of the debate – in the Senedd at 4:58 pm on 25 September 2019.
We know that we’ve lived through a period of huge financial pressures, but what that means in reality is that, when it comes to setting priorities and trying to ensure that we are able to deliver on those priorities, to channel the funds in the right way to the right place in order to deliver against those priorities, it means that we will need to be more sophisticated in terms of how decisions are taken.
Back in July, the finance Minister noted eight priorities for the Welsh Government for 2020-1. Those included social care, tackling poverty, decarbonisation—I wouldn’t disagree with those priorities, but it’s one thing to identify a priority verbally, but it’s another thing to ensure that funds are channelled towards delivering the ambitions set.
Now, the Welsh fiscal analysis does show that there will be an increase in block grants for next year, and that will allow the Government to increase funding for more of its priorities, given that they take the right decisions. But, of course, we know from previous years that the ability of Government to respond to a range of its priorities will depend, to a great extent, on how much money the Government decides to allocate to the health service once again. It’s difficult to escape that fact. The fiscal analysis has outlined three scenarios that look at how much goes to health and how much that leaves for other devolved public services, and every time there is an announcement of additional funding from the Treasury for England, there’s always pressure from those who perhaps lack a little imagination in this place for any funding spent in England on health—for the equivalent to be spent on health in Wales, but it’s not that simple, of course, and this question of prevention has to be at the core of fiscal decisions made. The WHO, we were reminded this week, has said that 80 per cent of those things that keep us healthy are things that happen or are influenced by things outwith the NHS budget. So, we must ensure that the preventative side is maintained, and here I move immediately to local authority budgets. Now, local Government in Wales can’t face more cuts. They can’t take any more flat settlements because that will be a retrograde step.