9. Debate: The Second Supplementary Budget 2019-20

Part of the debate – in the Senedd at 5:52 pm on 3 March 2020.

Alert me about debates like this

Photo of Rebecca Evans Rebecca Evans Labour 5:52, 3 March 2020

I'm grateful for the contributions from the two members of the Finance Committee and, again, I'm grateful for the work of the Finance Committee and I look forward to responding in some detail to those recommendations and accepting them. One of the recommendations was about making detail available as soon as possible following the March UK budget in terms of any impacts on the Welsh Government budget, and it's something we explored in the final budget debate today and, of course, I'd be very happy to provide the update as soon as I'm able to do so. 

HS2 was raised during the course of the discussion on the second supplementary budget for 2019-20 and, of course, we would expect to receive our fair share of any additional funding allocated to HS2 in future years. We would expect those discussions to provide at least some light through the process with the comprehensive spending review, which will be taking place as we move through this year. In addition to that, Wales needs a fair rail enhancement programme that is properly developed and fully funded by the UK Government, similar to that which they have in England. That, coupled with the devolution of control over the network, is vital, really, to realising the full potential of our rail here in Wales. But, of course, we have got other opportunities to discuss that. 

The issue of contingency and reserves was mentioned as well. Of course, we have the Wales reserve, which helps Welsh Government manage its budget over financial years, but then we also hold some contingency in order to help us respond to unforeseen events over the course of a financial year. Retaining an appropriate level of reserves for unforeseen circumstances is important, whilst also maximising the resources for planned investment. It's a difficult balance to get right, but we're confident that we have struck an appropriative one through the last financial year, or the 2019-20 financial year, but then reflected again in the debate we had earlier on this afternoon as we move forward.

So, this budget provides for several things, as a supplementary budget would. It accounts for adjustments that have been made since the first supplementary budget in 2019-20. So, it includes anything that would be drawn down from the Wales reserve, allocations to and from reserves, agreed switches between resource and capital, transfers between and within main expenditure groups, revisions to devolved tax forecasts and the block grant adjustment, and changes to the departmental expenditure limit, including the consequentials, negative consequentials, and other adjustments resulting from HM Treasury decisions. And then also, the latest annually managed expenditure forecast that was agreed with HM Treasury as part of the UK Government's supplementary estimates in January.

So, this second supplementary budget provides for the final amendments to our budgetary plans for the current financial year, and continues to support progress on this Government's priorities and commitments. And I move the amendment and the motion, and commend it to the Senedd.