5. Statement by the Minister for Finance and Trefnydd: Update on fiscal impacts of COVID-19 and future budget prospects

Part of the debate – in the Senedd at 4:38 pm on 6 October 2020.

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Photo of Nick Ramsay Nick Ramsay Conservative 4:38, 6 October 2020

Well, where to start? I think we are at least united in the desire to support jobs, young people, communities and our environment, and to 'grow back greener', as is the new expression that's going around. But, I must say, Minister, I'm a bit disappointed with today's statement. You point out that the UK Government has the macro-economic levers required to reignite the economy, but of course you must also recognise that you have some pretty powerful levers at your disposal here too. I really do think we need to get beyond this 'It's all Westminster's fault' line, which seems to pervade so many debates and statements in this Chamber.

You say in your statement that £4 billion has been allocated to alleviate the pandemic—that's true. But, as you also indicate, doesn't a large chunk of that money come from UK Government spending consequentials anyway, which surely is a great example of macro-economic support for Wales? In terms of the budget reprioritisation that you mentioned, it would be good to have a little more detail—I know you mentioned some projects—as to what that budget reprioritisation is involving and, indeed, which budgets are being reduced to allow for that reprioritisation to take place.

I welcome what you said about the future generations legislation and the need, as we build back better and greener, to make sure that that legislation is complied with, but how often do we talk about that, but then, in practice, it doesn't actually happen on the ground? Our late colleague Steffan Lewis was always raising this in this Chamber and in committee. These ideas are great in principle, but are they actually working in practice? Because if they're not, then that can be misleading.

I understand fully your calls for more budget flexibility and that is a good thing, however, it's not a panacea, is it? We welcome the guarantee that the UK Government gave you with regard to funding, but with regard to your concerns over clarity, what discussions have you had with the UK Government as to how greater transparency could be provided to the Welsh Government now and in the future when funding allocations are made? Although, I do suspect that that transparency may well highlight that the current allocations have been pretty generous, actually, so I'm not sure that we would hear too much in this Chamber about them at the moment.

Turning to support planning and EU finance matters, well, okay, you're having to make assumptions about the block grant—I understand that these are challenging times for your officials—but aren't Governments across the globe having to make assumptions about all sorts of things at the moment, in these unprecedented times? The situation across the UK is fast moving. As you said, they have macro-economic levers at their disposal, so I don't think it's entirely fair to just throw criticism at the UK Government; I think we have to accept that these are unprecedented times.

On EU transition, yes, we do look to the UK Government to ensure that Wales is not worse off as a result of the UK departure from the EU, and it is important that the devolution settlement is respected. You have support on that.

To bring this to a conclusion, Chair, let's not forget that it was the UK coalition Government that delivered greater fiscal powers for the Welsh Government and for this Senedd, including some pretty significant tax powers. So, I think we need to reflect on that, and, yes, flexibility is good, but when the Welsh Government ask for more money, it actually already has many tools at its disposal here to raise finance, to borrow and to incorporate flexibility into the system. So, let's remember that in the future. And Minister, can we work together, get on with growing the Welsh economy, growing the Welsh tax base, building back better, building back greener and making sure that the future economy of Wales is stronger than it has been in the past?