9. Debate: The Second Supplementary Budget 2020-21

Part of the debate – in the Senedd at 6:37 pm on 17 November 2020.

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Photo of Rhun ap Iorwerth Rhun ap Iorwerth Plaid Cymru 6:37, 17 November 2020

(Translated)

Thank you to the Minister for this afternoon's statement. This is an unprecedented year, of course, and I do realise and understand the pressures on Ministers and officials in dealing with fiscal issues in very difficult circumstances. May I also thank the Finance Committee for its report? I'm happy to endorse the recommendations made by the committee. Many of them are extremely important, including the need to improve the way in which information is shared on the budget at a time when the fact that the picture is changing so very rapidly and significantly can make it difficult to assess what's sometimes going on in terms of budget allocations. The committee is seeking clarity and a better analysis of a number of areas of expenditure from funding to local authorities, to funding to transport companies, and so on.

But there is also encouragement for the Government to continue to push for more freedom and fiscal flexibility and, as I've done on a number of other occasions, would give my support to the Minister in pursuing this issue further with the UK Government and the Treasury. This is something that I and Plaid Cymru have been emphasising regularly because we do believe that any normal nation should have that kind of flexibility, and I referred to it earlier today in my response to the statement on the mutual investment model. I don't think Wales as an independent nation, with the freedoms provided to independent nations, would need to use such a fiscal model at the moment given the favourable circumstances in terms of borrowing.

But to return to the present and this pandemic, having greater flexibility in terms of borrowing limits and in terms of using reserves is more important than ever now in terms of the ability to respond to the pandemic itself, but also to plan the recovery and the major investment that will be required for that recovery in time to come. And, of course, that lack of flexibility is reflected in the amount of unallocated funding included in the second supplementary budget.

What we have here is a Government that is uncertain in terms of its budget in future years, doesn't have flexibility to make its own decisions, and has to keep significant reserves, and if the Government knew that they had the ability to borrow, to carry funds over from year to year, then they could take a different approach to reserves in that scenario.

A few specific points on what's included, or rather what's not included: there are still sectors of business who cannot access support, particular pressures on businesses that can't operate at all and still face significant standing costs, and I would encourage the use of budgets to very carefully target those companies that are slipping through the net at the moment, including a number of hospitality companies who have a high rateable value, and are considered to be large companies, but in fact, they're relatively small, local companies, who haven't been able to access support to date.

To other issues not related to COVID—well, this is a COVID issue, actually—but there's no change in the allocation for the fuel poverty programme despite the fact that people will still have to self-isolate at home with the potential of seeing increased bills. Is this something that the Government has considered?

And one that isn't related to COVID: there is no additional funding for Natural Resources Wales for flood management specifically. We've suffered flooding in my constituency over recent years, and a number of other areas of Wales have suffered very badly over the last 12 months, including Rhondda Cynon Taff, and Conwy. Is there any intention to increase expenditure in that area in such a challenging year? I think people do need to know that the Government is doing everything it can to try and prevent those additional pressures on their communities that could emerge as a failure to manage flooding.