We have always looked to protect local government from the worst impacts of austerity. Delivering on the commitment for the best possible settlement, local authorities will receive an extra £200 million through the revenue and capital settlement next year. This brings total investment from the Welsh Government in core revenue funding and non-domestic rates to spend on delivering key services, including schools and social services, to nearly £4.5 billion. This means a real-terms increase for every local authority, acknowledged by the Welsh Local Government Association as an exceptionally good finance settlement. I am grateful to the WLGA for the positive engagement that they've had with Ministers and the co-operation shown in managing a challenging timetable for this year's budget.

Through the local government settlement and through our £1.8 billion education budget, the draft budget supports the national mission for a world-class education system, which includes more than £200 million for our educational infrastructure. Llywydd, with the new money for local government and the additional funding we are providing for schools and social care through other funding streams, we have matched the additional funding we received in the spending round in relation to schools and social care in England and we've gone further.

We have achieved this despite the burden of funding shortfalls delivered by the UK Treasury. I've previously updated Members on the £36 million shortfall that we received this year as a result of the UK Government failing to meet in full the increased public sector pension costs that we face. That shortfall will rise to around £50 million in 2020-1. It is entirely contrary to the UK Treasury's own principles set out in the 'Statement of funding policy', and removes £50 million that I could have otherwise allocated to our public services.

We recognise the vital role that local authorities provide in delivering preventative services. Prevention has been at the heart of the work in relation to our eight cross-cutting priorities of early years, social care, housing, employability and skills, better mental health, decarbonisation, poverty, and biodiversity. These are the areas where early intervention pays dividends, and where it's essential to delivering long-term outcomes. Through the new approach, we worked across Government, and outside traditional ministerial boundaries, to maximise our collective contribution to these priority areas. As a result, we're allocating new funding on top of existing measures, to help protect the future of our planet and to tackle poverty.

We know that there is no greater challenge facing Government, public bodies, businesses and third sector organisations and communities across Wales than climate change. That is why, in the first budget since our declaration of a climate emergency, we are allocating a new £140 million package of capital funding to support our ambitions for decarbonisation and to protect our wonderful environment.

Drawing on the advice of the UK Committee on Climate Change we are investing in the areas where we can have the greatest impact for our environment. This includes investment in active travel and an electric bus fleet, new ways of building homes, enhancing our most ecologically important sites, and the development of a national forest to extend the full length of our country. As recognised by WWF Cymru, this additional investment is a positive step on our journey to a greener Wales.

Llywydd, this draft budget also protects the significant ongoing investments we're making in support of our low-carbon delivery plan. This includes investments in our flagship £738 million investment in the south Wales metro and the additional £20 million we're investing this year in the north Wales metro. We're also making improvements in energy efficiency in 25,000 households through the Nest and Arbed schemes. By investing £240 million in this programme since 2010, we have been able to lift thousands of low-income households out of fuel poverty.

The greatest physical risks posed by climate change are increasingly intense storms, flooding and coastal erosion. In this budget we're committing £64 million to protect communities from the most severe impacts of climate change.

In terms of broader measures, we are also considering a public communications campaign around the climate and ecological emergency and a citizens' assembly, and we'll say more on this as our plans are developed in-year.

Building on existing cross-Government action totalling more than £1 billion, we are allocating an additional £19 million in a package of measures that are specifically targeted to help some of the most vulnerable people living in poverty in our communities. This includes new funding to extend pupil deprivation grant access for uniforms and other school essentials, ongoing funding to tackle period poverty, as well as extending funding for the school holiday enrichment programme.

Our mental health and early years priority work has also delivered extra funding for the whole school approach, to provide counselling and emotional support at school, as well as additional funding for Flying Start, allowing the programme to reach 3,500 more children.

Good-quality housing is central to supporting people in poverty. Together with an extra £175 million capital this year, we will have invested more than £2 billion in affordable housing over this Assembly term. And that is major investment welcomed by Community Housing Cymru.

Building on the steps we have taken in recent years and the 'journey checker' developed by the future generations commissioner, we have published for the first time a budget improvement plan, which sets out how we intend to take continuous steps to embed the requirements of the Well-being of Future Generations (Wales) Act 2015 into the budget process. I welcome the commissioner's statement that Wales should be commended for being at the forefront of a movement towards well-being budgeting.

Despite ongoing austerity imposed at a UK level undermining our ability to deliver the investment our country truly deserves, I am proud to introduce a budget that continues to invest in our vital public services while supporting our ambitions for a more equal, more prosperous and greener Wales. Thank you.