Thank you for the statement, which comes in very difficult circumstances, of course. If we look at the incredible year we've lived through, it's become more apparent than ever that the restrictions that the UK Treasury places on the Welsh Government and its ability to forward plan is a very serious problem for us here in Wales, and the frustrations around that are the greatest fiscal characteristic of this pandemic without a doubt.

In looking at the draft budget before us, there are a number of things to be welcomed, certainly, in terms of expenditure. If we look at some of the headline figures: the additional £40 million for the housing support grant; £20 million to support active travel, which I support and welcome; over £20 million to respond to demographic pressures on sixth form and further education, which is essential; funding to support changes to the curriculum, to mental health services in the community and in schools. There is significant funding—some £274 million—allocated for the railway and metro system, but it would be a good thing, if I may request it at this early stage, if we were to have some details from the Minister as to how that is to be spent.

Also, we in Plaid Cymru certainly welcome the Government's decision on the land transaction tax. The impact of second homes on our communities is an issue that Plaid Cymru has campaigned on for many years. We will continue to do that. I'm pleased that the Government is willing to have discussions with us, and is having discussions with us, on the range of steps that we'd want to see taken in order to safeguard our housing market beyond the land transaction tax changes. We need urgent action in this area, and I make that appeal once again to the Minister.

Llywydd, if I may turn now to the consequential funding for Wales in order to deal with the pandemic specifically. Before doing that, may I point out that every independent nation can make its own decisions on increasing expenditure in exceptional times such as these? Wales doesn't have that right to increase expenditure on health, for example. We can only access additional funding to deal with the health challenges of the pandemic when England decides to spend more and we get the consequential. That clearly is unacceptable. It's true for all areas of public expenditure too, and it's important that people should understand that, because it's a fundamental argument in favour of independence for Wales, and we have virtually no borrowing powers either, which would provide more flexibility to us.

But in returning to the use of those consequentials that have come to Wales, in the Finance Committee the Minister for Finance explained how £766 million of consequential funding had been provided to Government. Some 10 per cent of that—£77 million—has already been allocated. Now, it's not my job to defend the Government, but I do believe that the Government is right to be very careful in allocating these funds, and should ensure that reserves are maintained for use over the next year. There is a pandemic that is throwing new challenges at us, time and time again, and we do need reserves that we can turn to, particularly given the lack of flexibility available to us in fiscal terms, as I've already mentioned. I know that the Conservatives would argue that all of the funds should be allocated. I don't think that that's sensible at this particular point and perhaps they should persuade their masters in England to give us a better settlement here in Wales. So, yes, the Government is right to hold reserves. But, having said that, let me put my hat on as health spokesperson for one moment.

I am eager to see how the £689 million that remains is to be targeted effectively, particularly when it comes to the vaccination programme. There can be no skimping on that particular programme. But we also need to have clear sight, now, of the post-pandemic period and the rebuilding work that will need to be done. We need to ensure that the green comprehensive regeneration fund, which is ambitious, is put in place. Now, perhaps the Minister can tell us to what extent some of the consequentials could be used to that purpose.

In conclusion, I will refer to something I referred to at the outset, namely the frustrations in terms of the restrictions placed on the Welsh Government by the UK Treasury. The Minister will be highly aware of what I've been calling for since the beginning of our first lockdown, and I will reiterate the point: the UK Government must, at least temporarily, lift the restrictions placed on the Welsh Government's ability to borrow, to draw down funds from reserves and also to use capital funding for day-to-day expenditure. Give us the powers to look after the people of Wales. The Treasury still hasn't responded positively to that request, so can we have an update, please, on where exactly we are in terms of those negotiations? We needed urgent action at the beginning of the pandemic and we will need urgent action and the flexibility to act in that way when we rebuild. The grant is insufficient and the weaknesses of the fiscal settlement have also been highlighted. We need to re-equalise our economy and lift children out of poverty and we need to support our businesses and also, of course, we need to recognise the incomparable contribution of our front-line workers.