6. Debate: Draft Budget 2020-2021

Part of the debate – in the Senedd at 4:02 pm on 4 February 2020.

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Photo of Nick Ramsay Nick Ramsay Conservative 4:02, 4 February 2020

I'm pleased to be speaking in this important debate today, a debate, of course, about the budget, but also about the future of the people of Wales. Let us be quite clear about the context of this budget: yes, the Welsh Government has found itself developing this budget during an exceptionally short time frame, with issues surrounding the recent general election, and we recognise the challenges that that has brought. But all of this is also set against the backdrop of an extra £600 million a year being provided by the UK Government. So, taxpayers in Wales have the right to question some of the Welsh Government's decisions when it comes to investing in the Welsh economy and driving the Welsh economy forward post Brexit.

I see as well that the budget narrative looks back on the achievements and the spending of the Welsh Government on each department since 2016, but there is, perhaps unsurprisingly, little mention of any of the missed targets that Ministers are, of course, aware of, which, I think, at least in part, in the spirit of fairness, the Welsh Government would be wiser to admit to.

The Welsh Government will, of course, blame the UK Government for all its woes, although, to be fair to the Minister, austerity wasn't mentioned in any great depth until quite late in your debate there, so maybe you have listened to some of my criticisms in the past. But the Welsh Government does have to take responsibility for its own financial mistakes. That's part of being a grown-up, devolved Government with far-reaching and growing powers.

So, what do the public expect to see from this budget? What should we expect to see? Well, I would expect to see the Welsh Government investing in the NHS for transformational change. To be fair, you have put £37 billion into the Welsh NHS since 2016. That is quite a difference from the real-terms funding cut that we saw earlier, between 2011 and 2016, although I know that was with your predecessor as Minister, rather than yourself. You are, I think as you mentioned, pressing ahead with an extra £400 million spend on health, which is positive news. All these are increases of money, so that's good.

But, of course, that doesn't mitigate the fact that A&E waiting times have been the worst on record for two months in a row in 2019 and four out of seven health boards are under some form of Welsh Government intervention—Betsi Cadwaladr, as mentioned earlier, in special measures for over four and a half years. That's received around £83 million in turnaround costs, yet it's predicted to end the financial year in deficit. So, it's not just a question of providing more money, Minister, is it? It's a question of what that money is actually achieving, because there's also a value-for-money argument to be spoken about here, too. 

This is, we are told, overall a green budget—a great label, and an admirable way to try and proceed, but the question is raised: is it ambitious enough to really deal with the environmental challenges that we face? Does it adequately deliver on the Welsh Government's promises in calling a climate emergency, for instance? I don't personally think there's anywhere near enough detail here on offering new, innovative thinking when it comes to how the Government will, for instance, meet its target of at least a 95 per cent reduction in greenhouse gases by 2050.

I appreciate, Minister, that these are enormous, bold commitments, and they will take enormous willpower to achieve, but it's not simply a case of relying on yesterday's outdated policies to achieve these goals; it's about delivering a bold, confident vision for Wales, and we need to see a budget that drives a vision, that takes the people of Wales with it, that inspires and motivates the people of Wales. Because these climate change policy targets are going to be tough. I don't think we should be in any doubt about that, and no Government should enter into these commitments lightly. I'm sure you would agree with that.

Interestingly, I was watching the clock earlier and you mentioned the future generations commissioner—I think it was about eight minutes in. Often raised on the Finance Committee over the years I've been on it is this question: during the budget-setting process, is the future generations legislation really at the centre of that policy from the start and throughout, or is it too often perceived to be added as an add-on towards the end of the process? I don't know. I put it out there that I think you do need to justify that the future generations commissioner is consulted at all points in that process, because what is the point, as our late colleague Steffan Lewis used to say, of legislation like this, which sets out a very bold agenda, but actually, when it comes down to the practicalities of policy making isn't factored there early on in the process? So that needs to be addressed.

What about north Wales? It's not specifically my comment today, but of course Labour leadership contender Lisa Nandy has also raised a similar question. Although the budget outlines an additional £20 million for the north Wales metro, to be welcomed, and I've been a big supporter of the investment action on the south Wales metro, and I think good momentum has been started there, but we need to see that followed through in the south. And we certainly need to see momentum in the north, and I think there is a question in the north about whether that has been happening.

Nothing has been said, aside from the metro, about investing in upgrades to the A55, the lifeline to the north Wales economy. I think this is a wasted opportunity. There is a need for a key transport artery from the port of Holyhead to Deeside; a need for that to be fully ready to deliver exports from Ireland to the rest of the UK now we're in the post-Brexit period. And by the way, of course, the UK Government is investing in upgrading part of the A55 to help drive the north Wales economy forward, so, surely, Welsh Government funding in this area would be wisely spent. It's not match funding, exactly, but it almost achieves a similar goal if the UK Government is going to be committing money like that.

Of course, no Welsh Government budget would be complete without some funding for Cardiff Airport, and the budget outlines yet more funding—£4.8 million, I believe you mentioned, of financial transaction capital in relation to this budget in your speech.