Item 7 on our agenda this afternoon is the debate on the final budget of 2020-21, and I call on the Minister for Finance and the Trefnydd to move the motion—Rebecca Evans.

Motion NDM7282 Rebecca Evans

To propose that the National Assembly for Wales, in accordance with Standing Order 20.25, approves the Annual Budget for the financial year 2020-21 laid in the Table Office by the Minister for Finance and Trefnydd on 25 February 2020.

Motion moved.

Thank you. I'm pleased to open the debate on the final budget for 2020-21 this afternoon. Since we debated the draft budget in the Chamber a month ago, we've carefully considered the recommendations of the Finance Committee's report and those of the other Senedd committees. In line with the commitment we made following last year's scrutiny, I am pleased that we were able to respond to all of the reports by the end of last week, and I responded formally and positively to the 27 recommendations put forward by the Finance Committee.

At this stage in the budget process, we would normally look to take account of any significant adjustments resulting from the UK budget in the final budget. We know, however, that this year has been far from normal, given the UK Government's unpredictability. We've seen a promised multi-year spending review, which translated into a one-year spending round, and an autumn UK budget that is now set for 11 March—too late for us to take into account in publishing our final budget proposals. Not only are we constrained in this aspect, the UK Government, late on in this financial year, dealt us another blow by cutting our financial transactions capital by more than £100 million, and our traditional capital by close to £100 million.

In simple terms, the UK Government is taking £200 million away from us in what is a challenging time. I've written to the Chief Secretary to the Treasury objecting strongly to these changes being made so late in the day. We're seeking clarification, and as soon as I have that clarity, I'll write to the Finance Committee with the details. This is yet another example of why we need to complete the joint work with the UK Government and the other devolved Governments to review and improve the statement-of-funding policy, which is integral to our ability to plan and manage budgets. And this is a point I'll be pressing, along with the finance Ministers of Scotland and Northern Ireland, at a meeting of the finance Ministers quadrilateral next week.

Since we debated the draft budget a month ago, many communities in Wales have suffered the unprecedented and devastating impacts of storm Ciara and storm Dennis. Teams within Welsh Government have been working around the clock with local authorities, emergency services and Natural Resources Wales to provide the best possible urgent support to those affected. And I would like to take this opportunity again to put on record once more our thanks to the emergency services and volunteers up and down Wales, who have worked so tirelessly in recent weeks.

To support the initial recovery work, we have announced that up to £10 million will be made available immediately. We have been able to mobilise that funding in the short term through very careful management of our resources and the drawing together of funds from across Government. I wrote to the Chair of the Finance Committee last week, setting out how I plan to make that money available quickly, given the close proximity of the end of the financial year.

But we know that this is just the tip of the iceberg. Work is ongoing to get a clear picture of the scale of the damage, and to identify the longer term support needed.

We expect the that costs associated with the remediation in the longer term to be significant. Depending on the scale, it is unlikely that we can reasonably absorb the cost of the works required within existing budgets, especially given the £100 million general capital reduction we have just seen. That is why I've written to the Chief Secretary to the Treasury, seeking additional financial support outside of the normal Barnett process. I welcome the indication that additional funding for Wales will be made available by the UK Government, but we wait to see the full details of what support will be provided in practice. I would expect to make further allocations in support of the flood recovery in the first supplementary budget.

The storms we have seen in recent weeks demonstrate the significant consequences of climate change. Throughout the scrutiny of the draft budget, Members have expressed concern about the impact of climate change. Be in no doubt, taking on the climate emergency is a priority across the Welsh Government. In May last year, this Senedd was the first Parliament in the world to declare a climate emergency. We subsequently formally adopted the advice of our statutory adviser on climate change, the UK Committee on Climate Change, committing to reducing emissions of greenhouse gases in Wales by 95 per cent over the next 30 years.

This is the first budget since our declaration of a climate emergency. It provides for a new package of more than £140 million of capital funding to support our ambitions for decarbonisation and to protect our wonderful environment. This includes investment in active travel and an electric bus fleet; new ways of building houses; enhancing our most ecologically important sites; and the development of a national forest, to extend the full length of our country. This package of investment is an important next step on our journey to a greener Wales. 

We recognised in the draft budget that the greatest physical risk to our communities from climate change is through the increasingly intense storms, flooding and coastal erosion that we're already witnessing. In this budget, we're committing £64 million in 2020-21 to defend our communities from the most severe and immediate impacts of climate change, and we will keep funding under review and will make more funding available if needed. 

It remains unclear at this stage what the UK budget on 11 March will deliver for Wales. Should we not see any reduction in revenue funding from the UK budget, I will look to make a small number of further allocations in 2020-21 in the first supplementary budget. Whilst constrained by limited resources, we are committed to investing in those areas where the evidence shows that we can have the greatest impact. During scrutiny, Members expressed concern about funding for both the housing support grant and homelessness. Housing is one of our eight cross-cutting priority areas. In this budget, we allocated an additional £175 million to support our housing needs. We want everyone to live in a home that meets their needs and supports a healthy, successful and prosperous life. That is why I want to signal now that I will make additional funding available for both these areas next year, if I am in a position to do so after the UK budget. It is also why we're progressing our plans for the new land division within the Welsh Government, which will promote joint working between public sector bodies to unlock the potential of our public land for housing developments. 

Another important issue raised duiring scruitny was funding for buses. Bus services across Wales provide important access to education, training, work and healthcare and allow people to simply enjoy a day out. They're a vital link between our communities and an important tool in supporting a vibrant economy. This is particularly true in our rural communities and for the people who depend on these services the most. As I said at Finance Committee, we will keep this under review and I will consider making additional allocations in this area in light of our final settlement for 2020-21. 

Recognising that the decarbonisation of road transport is essential to delivering our net-zero target, we're taking action to make it easier for people to make fewer journeys by car and use alternative forms of transport. As well as investing in new forms of transport, however, we also need to meet our statutory obligations to maintain our existing road assets, to allow people and goods to move safely, prevent the risk of accidents, improve connectivity and access to education, skills, training and employment. The maintenance budget of more than £150 million includes an additional £15 million in 2020-21. However, the UK Government's decade of austerity has had a direct impact on the maintenance of the UK's road network. In Wales, road traffic congestion has been exacerbated by the UK Government's £1 billion underfunding of transport infrastructure, and the failure to electrify the main lines in north and south Wales, leading to increased traffic on our trunk roads. Therefore, I see the maintenance of our road network as a further priority for additional funding, particularly for the reasons of safety I've outlined. 

So, to conclude, this final budget delivers on the promises we have made to the people of Wales. It takes our investment in the Welsh NHS to £37 billion over this Assembly term, and provides new investment to help protect the future of our planet. Despite the challenges that we have faced as a result of the UK Government's unpredictability and chaos, I am proud that we have remained firm in our plans to deliver on our promises to the people of Wales and provide financial certainty. And I commend the final budget to the Senedd.  

Thank you. I call on the Chair of the Finance Committee, Llyr Gruffydd. 

Thank you very much. I am very pleased to have this opportunity to contribute just a few comments in this debate on the Welsh Government’s final budget in my role as Chair of the Finance Committee.

I am pleased that the Minister has accepted, or accepted in principle, all of the committee's recommendations, and I'm particularly pleased that the Minister has agreed to consider how we could build a spending priorities debate into the budget timetable in the years to come, and I look forward to working with the Minister on taking this forward. I think that there's an excellent opportunity for Members to have a bit more of a say and influence in the formative early stage of future budgets, rather than responding to something that is announced further down the line.

During the draft budget debate, this Chamber, of course, recognised the uncertainty that has surrounded this budget cycle and the exceptional circumstances, as the Minister said, under which it was delivered, given the general election and Brexit. In fact, we are still waiting to see the UK Government’s budget, and this, as we heard, may have significant impacts on the Welsh Government’s own funding. 

In our draft budget report, we recommended the Minister should provide an update on the impact that the UK budget will have on Wales as soon as possible after 11 March. I’m pleased that the Minister has accepted our recommendation, and has made a commitment to providing an early statement on the UK budget implications on tax forecasts and also details on consequentials to Wales. 

The lack of a UK budget has meant, of course, that Welsh tax forecasts are based on the Office for Budget Responsibility's UK economy and fiscal forecasts from March 2019. But, it is pleasing to see that both the draft and final budgets use the latest available Welsh information and outturn data to update their tax forecasts. This final budget shows a net increase in cash revenue and capital allocations of £4 million, which equates to 0.02 per cent.

We left the EU on 31 January, of course. However, uncertainty still surrounds the future relationship between the EU and the UK. We asked for assurances around the financial support available to the agricultural industry, and the Minister's response has stated that the UK Government has provided confirmation of funding for the basic payment scheme in 2020. But, further information will not be available until after the comprehensive spending review, which we are expecting later this year.

While we are here today debating this final budget, it is clear that the upcoming UK Government budget, which is in the pipeline, and the comprehensive spending review, and discussions on the funding arrangements following Brexit, will all have an impact on the 2020-21 budget. We will, I would imagine, be able to consider these changes in due course, and that is certainly something that we as a committee will be eager to do. Thank you.

Thank you. Nick Ramsay. 

Diolch, Dirprwy Lywydd. Can I thank the Minister for her opening remarks regarding the issue of flooding, and also add my words of thanks to the emergency services for all their hard work and commitment during those difficult times, which may, of course, not be over yet? 

I am pleased, Minister, that you started your contribution with the issue of flooding and with climate change. I seem to remember I was critical during the draft budget debate that the environment and climate change didn't feature higher up the agenda in terms of the list in your speech. So, you and your office clearly listened to at least one of my points during that debate and made, I think, what was a very good and important change, actually. I think, putting the climate and environment right up there at the start of the budget is all part of setting a green budget. I think, too often, we talk about the importance of green budgeting and making sure that the environment is at the heart of all we do, that's on the label, but it's not actually what happens in practice. So, hopefully, we are turning that corner and all parties realise the importance of putting the environment centre stage.

A green budget requires green infrastructure, and we desperately need to see more of that infrastructure. You did touch on some of it, and, obviously, the flooding situation has required a close look at infrastructure. Welsh Conservatives believe that we need a network of fast-charging electric points for cars to ensure that everyone is within at least 30 miles of an EV charging station. Those Assembly Members and members of the public, staff here who have electric cars, will know that it's okay to use them at the moment for short journeys, but when you try to use them for anything over a distance or travelling up to mid or north Wales, you really are taking your electric life in your hands in trying to do that. So, I'd like to see more in the budget about how we actually put forward proposals to improve that green infrastructure.

Under David Melding's proposal, the Welsh Conservatives' White Paper, new houses in Wales would all have electric charging points as well. It's once small change to the legislation, but it's something that in the longer term can really make a difference on the ground.

Turning to the rest of the budget, Minister, and it will not surprise you to know that the Welsh Conservatives will not be supporting this budget—[Interruption.] I didn't think that that would surprise you. We do welcome the fact that—

Will you take an intervention?

Yes, sure.

Will you be putting forward an alternative budget?

I do remember Gordon Brown putting forward an alternative budget many years ago, and I think the Labour Party was out of power for many years after that. It wasn't Gordon Brown, sorry, I take that back—Mike Hedges will correct me—it was John Smith. The problem with putting forward an alternative budget is, as the Minister knows, an economic situation is fast-moving, and, actually, it is for the Government to put forward a budget. It is for Government to put forward the budget and for the other parties to say where those amendments should be made. And if that is the Labour Party's way of saying that you want another party to put forward a budget, well, I'll tell you what, my colleagues here, Janet Finch-Saunders, Mohammad Asghar and Mark Isherwood, they will gladly come over and put forward a budget for you, and I'm sure that the people of Wales will look forward to seeing a few changes. But we'll leave that for another day.

We are not supporting this budget. We welcome the fact that the Welsh Government finally has some more money at its disposal with £600 million more from the UK Government. The age of austerity is coming to an end. But taxpayers in Wales will rightly question a number of the Welsh Government's decisions when it comes to investing in the Welsh economy and building a better Wales in the wake of Brexit. What have we seen? Over £100 million on a public inquiry on the M4; £20 million on the Circuit of Wales project; basically what amounts to a blank cheque for Cardiff Airport—not my words, but the words of the Chair of the Public Accounts Committee, who is of course me, so they are my words—an editing error. [Laughter.]

We welcome the fact that the Welsh Government has invested £37 billion in the Welsh NHS since 2016—[Interruption.] In one moment. And is announcing an extra £400 million spend on health. That is to be welcomed. That is good news from the Welsh Government, but we want to see more money going into transformational change. I give way to the former First Minister.

I am grateful to the Member for giving way. I was at a briefing with Cardiff Airport this morning, as was his colleague Russell George, and it was clear that Cardiff Airport receives no revenue subsidy. It's had loans on a commercial basis from the Welsh Government, a very small amount of money, especially given the fact that Bristol Airport has loans that tally up more than £500 million.

I didn't quite catch the question at the end of that, but on the Public Accounts Committee, we've been looking at the loans situation of Cardiff Airport, and there are some confusions there that need to be cleared up on the committee. I think what we would be afraid of is, yes, it's fine to give loans to a project, but those loans should not amount to a blank cheque. Those loans should not be unending and those loans should be tied in with a vision of the future and a strategy that everyone buys into and that will see a return to the taxpayer at the end of the day. But, of course, I accept that they do need to have loans of some sort.

In closing, Dirprwy Lywydd, because I know I'm out of time, I would say, what about north Wales? What about north Wales? Aside from £20 million for the north Wales metro, what about investments and upgrades to the A55, the lifeline of the north Wales economy? I think there have been opportunities taken in this budget but there are many opportunities that have been missed. I think that, in future, we need to see a budget that delivers for the whole of Wales, not just for the south of Wales and that Members in north Wales will see investment, green investment, and green infrastructure investment, as well, that delivers for everyone across Wales.

Diolch yn fawr iawn, Diprwy Lywydd. I'm afraid this budget is a bit of a missed opportunity and it's a bit of a double whammy too. It's a missed opportunity for a new, more dynamic, radical change of direction by a Labour Welsh Government, and it's set against a backdrop of a decade and more of deep cuts from an uncaring Conservative UK Government.

On the scale of cuts that we have faced, yes, I sympathise with the Welsh Government's position going into this final budget, and, yes, I also condemn the unannounced £200 million clawback from the Treasury. But in that kind of situation of adversity, I think you need to see a Government prepared to think differently, and I'm afraid we're not seeing it nearly enough. And, of course, without a comprehensive UK budget having yet been issued, it's still rather difficult to make changes to the final budget; I admit that. It's more crystal ball than red briefcase when it comes to trying to predict the actual Welsh budget for 2020-21. But even in that unsatisfactory context, I've no doubt that Welsh Government had the scope to think differently.

The Government says this is a budget to build a more prosperous, more equal and greener Wales, but for that kind of national building project to take place, you need firm foundations and a clear plan to guide you, and we don't see enough evidence of either. Into detail, then.

The Llywydd took the Chair.

In looking—[Interruption.]

Yes, certainly.

The same question as Nick Ramsay: have you got an alternative budget?

We certainly have, and we look forward to implementing it when we're in Government here. The Government says it wants to build a new Wales.

Let's turn to local government, first of all. We welcome the fact, of course, that the local government settlement has increased by 4.3 per cent, but the level of funding for our councils is still 13 per cent lower in real terms than the 2010-11 figure, and the increase is lower than what the WLGA stated was needed for local authorities just to stand still and maintain services. So, those services will suffer once again, and the pressure on council tax will continue, and we know that it is the poorest in society that are hit hardest.

It's disappointing too that there has been very little change between the draft budget and the final budget before us today. In the draft budget, there was something over £100 million of unallocated fiscal resource funding, but wasn't this an opportunity now to give a percentage of that to local government, in addition to what was set out in the draft proposals? Of course, local government plays a key role in providing preventative services, from education to leisure facilities and sports facilities, social services—those things that enable us to keep people out of the more expensive health service and to prevent longer term problems from developing in the first place.  

Turning to poverty, the levels of poverty in Wales are still disgracefully high, and I cannot see any evidence of a gear change in terms of the Government's attitude to the issue. Not only is it the right thing to do, to put real, innovative funding proposals in place to tackle poverty, but we estimate that dealing with poverty costs some £3.6 billion annually for the Welsh Government. So, it makes economic sense to tackle poverty too, as well as it being morally the right thing to do. Of course, the Welsh Government doesn't have all of the levers to eradicate poverty, but there is much that could be done, and the budget is a key tool in delivering that.

I have no time to go into as much detail as I would like, but, for example, we do see the Government supporting, in principle, the work of the Fair Work Commission, but I don't see any evidence in this budget of where that is being implemented in a practical way. Failings in terms of the welfare state is another issue in poverty, and that is a non-devolved area, of course, but if we look at something like housing, well, housing certainly is devolved, and we do see an unwillingness to be progressive in this budget when it comes to housing.

In transport, for example, we see £179 million for trains—Transport for Wales—which is excellent in and of itself, but that is three times as much as is provided to buses. Likewise, giving £62 million to Help to Buy for a relatively small number of people, which is of huge assistance to those people, and there's nothing wrong with it in principle, but that appears to be a great deal as compared to just £188 million in social housing grant for the many thousands of people who truly need assistance.

Now, I will conclude, because I am aware that the clock is against me, by turning to the climate emergency. The Minister did refer to the climate emergency and flooding at the beginning of her speech, but there is still not enough evidence that there is a real change of direction that is truly going to reflect the climate emergency that we, as a Senedd, and you, as a Government, have declared in this place. Once again, it's a failure to see whether the funding spent is spent as efficiently as possible. Twenty-nine million pounds for a fleet of electric buses. I am very enthusiastic about electric vehicles, as you know, but we can't see whether that is the best way of spending £29 million as part of the effort to tackle the climate emergency. 

Let me ask this to close: does the Government really believe that this budget will change the lives of the people of Wales in a significant way by the time of the next budget? Is this the budget that really starts to turn things around for Wales? I'm afraid it is not; that's why we'll be voting against this budget today. We need a budget, we need a Government, that looks to substantially and materially improve the lives of the people of Wales, and that's Plaid Cymru's driving force.

I agreed, just now, with the description of this being a missed opportunity. We've seen the ending of austerity and the opportunity to have budget increases of a decent amount, and rather than prioritising and sending a key message as to where it's going with that, the tendency, I think, of this budget is to give relatively similar increases across a large number of areas, albeit with some small areas that are prioritised within that.

What I would like to do, though, is compliment the finance Minister on how she's presented the final budget just now. I've made the point on a number of occasions that she's used lots of past speeches to complain at length about Brexit and about austerity, and, actually, I didn't hear either of those today at all, and she stuck to her knitting, if I can use that phrase, of what the Welsh Government responsibilities are. I think we should applaud that.

She criticised the UK Government for its unpredictability in terms of this budget round. I think, to be fair, some of that unpredictability was not of the UK Government's own making, in particular the timing of the election when the House of Commons finally did vote for that. However, I support what Welsh Government is saying about the £200 million of very last minute cuts to capital and financial transaction spending, and I think it's most unsatisfactory for those to come so late in the day. I think UK Government, even if it's formally announced later, should at least be able to informally liaise with Welsh Government again about such potential changes with more time given to them.

The remarks about the flood defences—I concur also. I think Welsh Government—very fair of UK Government to ask them, 'What are you asking for? What's this money going to do?' I think the response that, 'Actually, we need more time for the flooding to go down to inspect and decide what's needed,' is also a very fair response. It's a devolved area, but I welcome Welsh Government asking UK Government for money in this area and that partnership approach, and I hope it will be replicated in other areas.

I think, particularly with floods, I was drawn by a meeting of Confor that Andrew R.T. Davies chaired at lunch time about some of the tree planting initiatives and the links with flood, particularly the ash dieback disease, and how that's the tree, perhaps, that absorbs more water than any other, we were informed. Also, the flooding that we've seen on the Severn, particularly in Herefordshire and Worcestershire, that water has come off Welsh mountains, but it's largely English settlements that have had the consequent flooding. One suggestion, again, in that Confor meeting was—could we not have more planting of trees on the tops of hills, where they would be able to grow, where the heights are appropriate? That doesn't seem to happen because the categorisation of those landscapes as being a particular type of landscape means it's difficult, then, to arrange for tree planting. If there is a climate emergency, if you really do want to change policy in this area, look further at how to smooth the way to more tree planting, particularly in those less costly areas per acre where there would be much more, I think, private interest in doing that tree planting without large-budget subsidies. 

You mentioned, finance Minister, 2020-21—the first supplementary budget. Will we await the first supplementary budget before you will make a statement on your response to the UK budget on 11 March, or will there be a statement beforehand? And can you tell us when you would expect that first supplementary budget to come in? 

We talked a lot about Cardiff Airport. The Government, bravely, are having a debate on that in the coming weeks. I shall save my remarks on that until then.

On the issue of the A55 upgrades, Nick Ramsay says to the Welsh Government, 'Why haven't you done it?' I remind him that, actually, his UK party's manifesto in December specified that they would upgrade the A55 for north Wales if elected at a Westminster level. It's a radical trajectory for devolution, but that is what you said in your manifesto.

Finally, can I welcome the changes that the Minister is saying we'll see in the budget, albeit we're not getting them today, for the supplementary budget, assuming we do have some more headroom with the UK budget? I think both on the housing and homelessness, and particularly, if I may, just because it's an area I've spoken about at every opportunity, the bus services as well as the new electric buses, which I accept are going—some are going—to Caerphilly and Newport as well as to Cardiff, but I think it really is excellent if we are going to see an upward move in bus subsidy. I think that will show Members and stakeholders that Welsh Government is at least listening and engaging in this budget process, and I think that is to be welcomed. 

Finally, the extra money for roads and road maintenance—I welcome that, too, although I wasn't quite clear whether the finance Minister was saying that was part of the climate change category that she introduced. Thank you. 

To Rhun ap Iorwerth, can I say: please will you publish your budget, if you've got an alternative one? Remembering, of course, that you've got exactly the same amount of money, and everybody you give more money to, you have to take some money off. 

Whilst I'll be supporting the budget motion, I want to address how money is spent, because the increases are welcome, but how it is spent in departments is at least as important. The role of government can be broken down into the areas of health and well-being, security and the economy. Starting with health and well-being, and I put the two together because I think they do fit together, rather than just talking about health—health is no more just about hospitals than car maintenance is about cars being repaired in garages. People's health and well-being begins with having a warm, waterproof and safe home with enough nourishment, and far too many of the people in Wales haven't got those. Stopping people becoming homeless, and providing supported accommodation, will keep many people out of hospitals. I want to highlight two areas that are important. Before that, I would like to welcome what the finance Minister said regarding housing. I think housing is one of the most important things we've got, and I'd just remind people of the best Government this country's ever had—the 1945 Government of the Labour Party. Health and housing were together under Nye Bevan. 

The provision of social housing and the provision for Supporting People is incredibly important. People in poor-quality housing, or the homeless—[Interruption.] Certainly.

Will you be putting forward an alternative budget?

I can give you an alternative budget, because I'd put more money into education, more money into housing. I would not be supporting Help to Buy—all it does is inflate house prices—and I would not be spending so much money on the economy portfolio. I'd be spending it on education, which would help the economy. So, whilst I support the budget and will vote for it, I would actually have an alternative one.

Within health provision, my concerns about the size of the geographical areas of health boards is well known. The funding of primary care needs to increase, and patients need access to a doctor on the day they make first contact, and to get it. What is happening is that people cannot get an appointment with their GP and then they go to A&E. Often, the default position in A&E is to keep them in for 24 hours for observation, when they come in with non-specific symptoms. A&E is no longer accident and emergency, but often the only place that someone can go in order to see a doctor, albeit you might have to wait 12 hours to do so. On hospital discharge—ensuring that the hospital pharmacy provides the medication on time, so that patients can go home rather than waiting for it to be provided the following day or the day after. And why do so many people going into hospital able to look after themselves, get discharged either to a nursing homes or to a substantial care package? Whilst understandable for stroke patients, I find it less understandable for patients having hip and knee replacements. Also, all that happens if more consultant surgeons are employed, if there are not sufficient beds in high dependency units, then no more operations will be carried out. I think it's really important that the whole amount of money provided to health actually is spent to benefit it.

On the economy, we can either try and make a better offer than anyone else to attract branch factories, or we can produce a highly skilled workforce. The alternative is creating our own industrial sectors, having employers coming here because of our skills mix, not our financial inducement. How much are they paying people to go to Cambridge? How much are they paying companies to go to Silicon Valley? They don't have to—people want to go there because of the skills. We should be the same—people wanting to come here because of the education and skills of our people. Money spent on education in schools, colleges and universities is an investment in the Welsh economy and economic growth.

Turning to environment, energy and rural affairs areas, we've declared a climate change emergency. That's really important, because we actually accept now we have a serious climate problem. The committee's doing an investigation into fuel poverty. And whilst a lot of good work's being done, there are still people living in houses that haven't got double-glazing and haven't got central heating. And surely, that would be a good place to start. Whilst we've got a definition of fuel poverty, sometimes it doesn't catch all the people who are in fuel poverty—they keep their houses cold, they go to bed early, because they cannot afford to spend the amount of money that would put them in fuel poverty. Actually, doing good work could actually not move them out of fuel poverty, but it will keep them warm. And I think these really have got to be high priorities.

We've got Natural Resources Wales. We've just seen this flooding. People know my views, and I'll just repeat them, very briefly—we need more flood plains, we need to create ponds and areas where water can go into. We need to plant trees. We need to stop people building on flood plains. We need to ensure that we reduce the amount of flooding. And we need to make rivers wider, we need to make them meander, so that you haven't got the power of them coming down. We need to ensure that what we're doing is going to protect our environment, and I would hope that, when we get down to the next stage, and money being spent by the Welsh Government, that is what actually happens.

I rise to support the Welsh Labour Government's budget for 2020-21. Despite a decade of harsh austerity and cuts inflicted on Wales by the UK Tory Government in London, the Welsh Labour Government here continues to act as a firewall against a shrivelled and stunted Welsh block grant, and a chronic absence of UK infrastructural spend. It is important, with climate change, that this changes.

And this is separate in addition to the unexpected £200 million take from Welsh finances by the UK Government. Indeed, austerity looks set—and I disagree with Mark Reckless—to continue in the years ahead. In October 2018, then Prime Minister Theresa May stated austerity would end in 2019. And in September 2019, then Chancellor Sajid Javid declared the Tories had turned the page on austerity. It's 2020, and look what's happened to them. Yet, austerity is still ravaging communities across Wales—and I invite you to see some of them—forcing families into food banks, from homes into homelessness.

So, I am heartened that at the centre of this Welsh Labour budget is the Welsh national health service, education and public services. As a former county councillor, I know that the vital public services that are run from our city and town halls and our rural communities across Wales are the service delivery hubs and the engines that actually run Wales. This budget sees a real-terms increase for every authority, and the difference this makes in reality is profound. For Islwyn residents, this allows the drastic proposed cuts of £8.5 million—the reality—to be reduced to £3 million, but this is still £3 million less. For Islwyn residents, this means the necessary council tax rise proposed can be lessened, and for Labour councillors—they will continue to stand up for the well-being of their citizens and the valued public services that they do not wish to cut. This Welsh Labour Government continues to back them financially, even with the scorched-earth terrain that the Tory policies of austerity and cuts create for our public services. 

When I was elected to this Senedd, I stated one of the major drivers for my political motivation was a desire to tackle poverty. As such, I welcome that a major plank of this Welsh Labour Government's budget is focused on that vital issue of tackling poverty via preventative spend, and I welcome the Government's intentions also around Supporting People and the bus subsidy.

Nearly £1 billion is already invested in a wide range of measures that contribute to tackling poverty, including the council tax reduction scheme, which delivers discounts for one in five households, backed by £244 million each year; £1 million for the discretionary assistance fund; £2.7 million for school holiday enrichment; £6.6 million for our poorest young people; and free breakfast club pilots for secondary schools. I could go on: £0.25 million for sanitary projects via food banks and organisations; £3.1 million in this budget for local authorities and colleges to supply sanitary products free of charge, aiming to stop silent period poverty, which impacts on attendance and attainment for some of our young people.

The Labour-run Caerphilly County Borough Council has led the way in Wales on this issue, and provided 100 per cent plastic-free period products to young women across the borough. This is evidence of the difference that a radical Labour-run county council working in partnership with the Labour-run Welsh Government can make to improving the lives of its citizens, working together for a green, clean Wales. I continue to campaign for all Welsh local authorities to follow suit and provide plastic-free sanitary products. Having met inspirational Ella Daish, a passionate activist campaigning to end period plastic across the UK, I wish to pay tribute to her. I know that the Welsh Labour Government will continue to lead the way in this field, as this radical budget clearly shows. 

So, to conclude, Llywydd, I urge all Members who believe in a fair Wales, who wish for a just Wales and who yearn for a better Wales to back this strong and stable Welsh Labour Government budget for 2020-21. Thank you. 

I'm pleased to be able to support this final budget today, a budget that rightly prioritises our NHS and also offers a sustained programme of funding to ensure the future of our country. In setting out the budget today, Ministers have met their promises to the people of Wales and ensured the alignment of governmental priorities with those of our citizens. Services are protected and enhanced, despite having to deal with the impact of a wasted decade of unnecessary, ideologically driven austerity. 

For my contribution, I want to focus on just two main policy areas, both of which are, I feel, intrinsically linked to the future of our communities. The first is the interventions that the Welsh Government includes in the budget around tackling child poverty. According to recent data, Penrhiwceiber in my constituency has the highest child poverty levels in Wales. Now, Penrhiwceiber is a fantastic community, and I was really pleased that the Minister for Housing and Local Government was able to join me there last year for a round-table, and I'm very thankful for the work that has come out of that on child poverty, both at a local government and a Welsh Government level. 

The causes of child poverty are complex and most are not devolved, but I am pleased that addressing child poverty has always been a priority for successive Welsh Labour Governments in the areas that they can influence. Indeed, across portfolios, the Welsh Government already invest nearly £1 billion in a variety of interventions to tackle poverty, and the budget before us today will enhance that provision. For example, it contains an additional investment of £6.6 million in the early years pupil deprivation grant. This means that, over the course of this Assembly term, despite the real-terms cut in funding, Wales will have more than doubled the early years PDG. A significant intervention to support household budgets is provided by the PDG access grant, and I welcome the fact that, this year, the Welsh Government is allocating an additional £3.2 million for the 2020-21 academic year to extend the scheme to more year groups. Also to be welcomed is the £2.7 million funding boost for the school holiday enrichment programme. Extra children can now be supported through this excellent scheme. I was able to visit a primary school in Penywaun some time ago to see the impact that this has. Similarly, it is positive to note the £450,000 being marked to launch a free breakfast club pilot for secondary school pupils.

My second policy area that I'd like to speak to today relates to dealing with the impact of the flooding that's affected Wales, including much of Rhondda Cynon Taf, over the past few weeks. I said that it's linked to the future of our communities, and that's a fact. The statistic that we've all been talking about in the Chamber today from the Royal Meteorological Society—that over the next decade, the Valleys will see 50 per cent more rain—shows that we really do need more investment in ensuring that we can minimise the impact of this on our communities. We also need funding to be made readily available for putting things right when they go wrong. Assembly Members will know about the letter, of which I was just one signatory, that was sent to the Chancellor of the Exchequer last week asking for a one-off injection of £30 million to help to repair and for restoration work in RCT. Across Cynon valley and across Wales, the community response and generosity to the flooding has been phenomenal, but it can only go so far, and Government at all levels will need to be mindful of their obligations. During Prime Minister's questions last week, the Prime Minister said,

'the Government are committed to working flat out with the Welsh Administration to ensure that everybody gets the flood relief that they need. Yes, of course, that cash certainly will be passported through.'

Now, we're nearly a week on in a time of crisis, and nothing has happened. The UK Government has recognised its responsibility for providing further funding, given the intense and disproportionate impact of flooding on Wales, so it needs to meet that responsibility urgently. Otherwise, it's just another example of empty words from the Prime Minister, and it's unfair that my constituents and others will have to suffer in consequence. Thank you. 

The Minister for Finance to reply to the debate, Rebecca Evans. 

Diolch, Llywydd. I welcome the opportunity to have this debate this afternoon, and I do thank Members for their contributions. As I outlined in my opening statement, this is a budget that has taken place amidst uncertainty and evolving circumstances and, of course, we expect those to continue beyond the Chancellor's UK budget on 11 March. It's only right that I put on record my thanks to our Welsh Government officials, both within Welsh Treasury and my finance officials, but also finance officials working right across departments in Government who have done sterling work in very difficult circumstances this year. I'm incredibly grateful to them. 

It is my intention to make a statement as early as possible following the budget on the implications for us here in Wales. In my opening remarks, I did take the opportunity to highlight where I would seek to make additional funding, should it become available, or at least should our funding not be reduced as a result of the UK budget. Nick Ramsay referred in his comments to the fact that I was listening during the budget process. Well, I can guarantee that I have been listening, and these are the reasons why those are the areas that I have highlighted for additional funding.

So, flooding clearly has to be a priority. UK Government has said that additional funding will be passported to Wales, and we're certainly keen to use additional funding to support those communities that have been so badly hit. And as we've heard a number of times over the last week or so, we don't yet know the scale of the damage and the quantum of the funding that will be needed in order to deal with the flooding, but certainly that will be a priority looking to the next year. And homelessness and the housing support grant—

Will the Minister take an intervention? I'm pleased that you were listening, Minister, and have taken things on board. Would you agree with me that, given the growing powers of this place and the growing fiscal devolution, perhaps this debate itself—the final budget debate—is something that could be looked at in terms of the scope of the debate? I got the feeling today that many Members had, maybe not all to do with the budget, other things they would have liked to have said, but there were time constraints to the five-minute slots. I just wonder, with the amount of stuff that we're trying to fit into this debate, whether in the future, in the next Assembly, the final budget debate could perhaps be a little bit more extensive.

That's certainly something I'd be happy to take up with my business manager colleagues in the various parties for potential discussion within the Business Committee. 

But I think the point that Llyr raised in his remarks about the importance of having early discussion is important, which is why I was so pleased to see and respond positively to that recommendation by the Finance Committee that we should have a debate on spending priorities early in the year. I'm very happy to do that, and look forward to that debate in due course.

The second area, though, which I highlighted as an area for additional funding, would be homelessness and the housing support grant. I know that's an area of real concern to Members and it certainly aligns very closely with our concern about prevention and our concern about looking after those people who are the most vulnerable in society. So, that would be another one of those areas where I would seek to make additional funding available.

And again, I think the same applies to bus services. That was a message that came through really loud and clear in the committee scrutiny and in the debates that we've had in the Chamber. It's certainly, again, an area that is extremely important to some of the most vulnerable people in our communities in Wales. And the issue of road maintenance, although perhaps it's not instinctively where one would think about putting additional funding, actually, it is so important in terms of road safety and in terms of looking after the assets to ensure that they are fit for purpose. So, that's another area that I've identified.

The reason why I'm not prepared to make allocations at this stage is partly because of the uncertainty, but also, going into a new financial year with only in the region of £100 million contingency, I think, is something to bear in mind as well. I mean, if the last month or so has taught us anything, it's that we have to have that level of contingency available. We've seen the flooding. We've seen the challenges now with potential funding needed to deal with coronavirus, depending on how that situation plays out. So, I think it is important to go into a financial year with a level of contingency. It would be, I think, irresponsible to take things far beyond that £100 million, given what we've learned in recent times. So, I think that we are going into the next year with an appropriate level of contingency funding.

A particular area that was raised in the debate, and I think was a theme throughout all of the contributions, was the importance of tackling poverty. That came out very strongly in some of the contributions, particularly from Vikki Howells, Mike Hedges and also Rhianon Passmore—the concerns that they raised about tackling poverty. You'll see so much in this budget that is aimed at tackling poverty; around £1 billion in this budget is aimed at doing just that. It's important to recognise that there will be individuals and families who are £2,000 better off—money in their pocket—as a direct result of the decisions that this Government has taken.

It is a fact that people can get used to things. People might not necessarily realise that, actually, the reason why that extra money is in their pocket and decisions are being taken is because it's a Labour Government prioritising things, such as: the pupil development grant access funding to ensure that children have the kit that they need for school; the money that we're putting into free school meals; the new approach we're taking to free breakfasts in secondary schools; we have the school milk scheme; school holiday enrichment programmes; the Holiday Hunger Playworks Pilot, which we're also doing; and then we've heard about the work on period poverty as well. Those are just some of the areas in which we are working.

I can see that my time is starting to run out. I know that we have the next debate this afternoon on the local government settlement, so there will be an opportunity there, I think, to reflect on the funding that we have provided for local authorities. The WLGA has been clear that, actually, they feel it is an exceptionally good settlement, but I think we accept the WLGA's point that, actually, one year of a good settlement doesn't make up for a decade of cuts. But certainly, it is our firm intention to support local authorities as much as we can, and you will have seen that as one of our priorities, alongside the NHS, throughout the final budget.

So, I hope I've tried to respond to some of those points; as Nick Ramsay said, it's very hard to respond to everything in the time that we have available. But I would just like to commend the final budget to colleagues and hope that they will lend it their support this afternoon.

The proposal is to agree the motion. Does any Member object? [Objection.] I will defer voting until voting time.

Voting deferred until voting time.