7. Debate: The Final Budget 2020-2021

Part of the debate – in the Senedd at 5:04 pm on 3 March 2020.

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Photo of Rebecca Evans Rebecca Evans Labour 5:04, 3 March 2020

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.