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 4:47 pm on 6 October 2020.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 4:47, 6 October 2020

(Translated)

Thank you, Minister, for the statement. Yes, we are in an unprecedented period of pressure on our budgets, and I certainly agree that a lack of clarity from the UK Government does cloud things further, and I would hope that the Conservative spokesperson would agree that we need that clarity. We in Wales must be able to make our own analysis as to whether the funding coming follows the current rules on the allocation of funding between the nations of the UK, and at the moment, it's not possible to do that.

The Minister will be aware that I've made the case on a number of occasions for more fiscal flexibility as we move forward; it's a question I've asked a number of times here in the Senedd. I also agree that the Welsh Government's voice needs to be clearly heard as part of the UK Government's spending review. The Minister told us that the nature of the relationship had improved, that the negotiations were happening at higher levels than was the case earlier on in the pandemic, but it's one thing to have eight or nine quadrilaterals; it's another thing to reach a point, after those meetings, where decisions would be made by the Treasury without giving real consideration or a real voice to the Welsh Government. And, of course, Plaid Cymru and I have regularly argued for the need to provide robust sources of funding to replace European funding. The pledge was that Wales would not receive a penny less, and we're nowhere near that situation as of yet.

So, in terms of the funding that's been spent, reference was made to the £4 billion and the £320 million in addition. Now, I welcome additional funding, of course, in various areas. I'm sure my fellow members in the Plaid Cymru shadow Cabinet will be eager to grapple with a number of elements of what was announced and also announced by the Counsel General in his statement, but there are a few areas where I would like more information. For example, local government was one that seemed to be missing in today's announcement. We know that additional funding has been allocated to local government, but we are still facing a situation where the councils that have been so crucial in the fight against COVID and the response to COVID still face huge financial pressures, and I would like to know, in the context of today's announcement, what kind of level of additional support the Government is likely to be able to provide. In the same vein, I wonder whether the Minister could confirm what the intention is in terms of the publication of another supplementary budget. We were given a date there for next year's budget, but we may be in a position now where we need a supplementary budget too, and confirmation of that would be useful.

There was another element that I would like to get some clarity on, which is around an exit from the European Union without agreement. We're very close to exit date now. The prospects are not looking promising for areas such as Holyhead in my constituency, the port of Fishguard, counties such as Anglesey and Ceredigion, who are on the European frontier and the additional pressures that are likely to come as a result of a disorderly exit—as much order as is possible to imagine at this point. So, what funds does the Government have in reserve—in addition to the pressures as a result of COVID—to deal with that crisis too, which is rushing towards us as we speak?