6. Debate on the First Supplementary Budget 2020-21

Part of the debate – in the Senedd at 4:01 pm on 24 June 2020.

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Photo of Alun Davies Alun Davies Labour 4:01, 24 June 2020

I think we all recognise the hard work that's been undertaken by the Finance Minister and her colleagues at this most impossible time. I think we'd all agree that the Welsh Government has responded with speed and agility to the crisis as it has emerged over the past few months, and the funding has been delivered directly to the front line. I think we all recognise that in the allocations that we are debating this afternoon. I think we should also recognise that, in the main part at least, the UK Government has also been able to deliver additional support to maintain jobs and employment. And all of this, I think, is to be welcomed.

There are two points, Presiding Officer, that I would like to make in this afternoon's debate: firstly, on the structures of funding available to the Welsh Government, and, secondly, the priority given in this financial year by the Welsh Government to the growing demands on that funding.

Much of the Finance Committee's report, and many of these recommendations, as has already been described by Members in this debate, describe the funding policies, structures and arrangements that exist between the Welsh and the United Kingdom Governments. It was good to hear in her opening remarks the Minister saying that she's accepting the recommendations that the committee has made on these matters.

It is clear to me that this emergency has tested these inadequate arrangements to breaking point. It has long been a fundamental truth that the structures by which funding is distributed throughout the United Kingdom do not work fairly for everyone. The financial framework that was agreed with the UK Government earlier in this Senedd will not provide a firm basis on which to provide for fairness across the different countries of the UK, and neither does it provide the flexibility that the Welsh Government requires to respond to the challenge that is facing us, and I think the Welsh Government has accepted this already.

So, in short, we do need a new settlement, a settlement based on needs and equality. We need UK structures and UK funding policies that are agreed between our different Governments and that are delivered independently of the UK Government. In these matters, the UK Government is a player; it cannot act as a referee as well. So, having accepted these recommendations, I'd be grateful if the Minister could outline how she intends to take these matters forward over the coming year.

My second point, Presiding Officer, is the relative priorities of the Welsh Government in providing funding allocations. We all recognise the immediate importance of ensuring that the NHS and front-line services are fully funded to respond to the coronavirus crisis. But, as we move forward over the rest of this financial year, we will also need to see significantly more investment in economic support. I want to see the Welsh Government having a clear and razor-sharp focus on jobs. In constituencies such as mine in Blaenau Gwent, we've already been identified as being at serious risk of losing employment as we see the full impact of the coronavirus on our economy. To address this, the Welsh Government's response must also be to ensure that funds are allocated to deliver core services, but also to invest in protecting the jobs of the 7,000 people who are currently furloughed in Blaenau Gwent. We know there are 300,000 people furloughed across Wales. We need to protect these jobs into the future. In my own constituency, Minister, I especially want to see movement on the Tech Valleys programme. This was launched by myself and the economy Minister nearly three years ago. It is clear that progress has not been anything like as rapid as it should have been, and I think, to be honest, the Government recognises that. We need to see that progress now if we are to withstand the additional pressures caused by the coronavirus crisis.

I recognise what's been said by other Members in this debate and I recognise that all of us will have our own list of priorities, but, for me, it must be the case that the structures within which we operate and the allocation of funds to protect jobs must be the key priorities for this Government for the rest of this financial year. Thank you.