9. Debate: The Second Supplementary Budget 2020-21

Part of the debate – in the Senedd at 6:50 pm on 17 November 2020.

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Photo of Rebecca Evans Rebecca Evans Labour 6:50, 17 November 2020

So, just turning to some of the specific areas where there is a high degree of interest, one is the £800 million package of support for the NHS in order to help it stabilise and prepare for the anticipated challenges that the next few months will bring. You'll see that reflected in this supplementary budget, alongside £45 million for the COVID-19 contact tracing workforce, £22 million to meet adult care social providers' costs in relation to healthcare that they provide for the second six months of the year, and also funding to support unpaid carers, funding to support the childcare offer, and funding to support the new Cardiff and Vale COVID-19 facility to manage any potential increases there over the course of the winter.

And of course, all of that is reflected in the supplementary budget, alongside the additional funding for housing and local government, where I know there's also a great deal of interest. So, that includes £264 million for local authorities to support them for the remainder of this financial year, and it includes funding for, again, adult social care providers, funding to ensure that the local government hardship fund is able to meet the needs of local authorities, and funding to ensure that local authorities are not badly impacted by the impact of COVID-19 on council tax applications and the extension of the council tax reduction scheme to people who haven't previously been claiming for it.

So, those are several of the things that are reflected in this particular supplementary budget. This year, undoubtedly, is one of uncertainty, and the extra funding that we've received from the UK Government has been essential to help us deal with the immediate response to the crisis, but we do need consistent and sustained investment above existing pre-COVID levels to deal with the long-term impacts of the pandemic on services, businesses and individuals, and the UK Government will have the opportunity to provide that in the comprehensive spending review next week.

I've been really clear as well that our response to the pandemic is not just an immediate response to the direct health harms caused by the pandemic itself, but it's also about alleviating the wider impacts caused by the unprecedented social and economic measures that we've taken to protect people's lives and reduce the spread of the virus. A significant focus of the action that we've taken has been on preventing harm to the most disadvantaged and preventing wider negative impacts on the people of Wales and the wider economy. We've evolved and collaborated across the public services, the private sector and the third sector at pace in developing and delivering the interventions to respond to this pandemic.

The First Minister has also outlined, given the speed at which things can change and the nature of the virus that we face, that we can't offer any kind of guarantee as to what the future might hold. But what we can say is that the economy is now in one of the deepest recessions in living memory, with uncertainty over the shape and the pace of the economic recovery and a lack of clarity over future trading relations with the European Union impacting on people and businesses. Public services in Wales are still responding to the pandemic, as well as now facing longer term impacts, so it's really imperative that the UK Government continues its substantive fiscal and economic interventions using its macro-economic levers, including welfare benefits, taxation and support schemes. The UK Government should continue to borrow while interest rates are lower than before the crisis, and are actually lower than the rate of inflation, because it's the only way to protect the economy's capacity to produce the goods and services that we need to emerge from the crisis.

So, Llywydd, the measures in this supplementary budget are by no means the end of the story. As I said, last month I announced an investment package of £320 million for projects and schemes over the next six months to maximise the impact of our available resources this financial year to support our recovery, and those, of course, include our support for young people, who were so badly affected by the lockdown, including additional catch-up support for learners in years 11, 12 and 13; capital investment, for example in low-carbon housing, schools and primary care, to create and safeguard jobs, deliver homes and better public services; and tackling inequalities, particularly in respect of BAME people who have been severely impacted by COVID-19. So, we will continue to closely monitor and assess the position in Wales, and I will bring forward that third supplementary budget before the Senedd before the end of the financial year.