5. Debate on a Statement: Draft Budget 2021-2022

Part of the debate – in the Senedd at 4:26 pm on 12 January 2021.

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Photo of Caroline Jones Caroline Jones UKIP 4:26, 12 January 2021

I thank the Minister for outlining the Welsh Government's 2021-22 budget. The fact that we are even able to debate this budget is remarkable, given the challenges of the past 12 months. I know that the Minister has criticised the lack of a three-year spending plan from the UK Government, but you must accept that in these uncertain times it's virtually impossible to plan.

We don't know what will be happening next week, let alone next year or the year after. It makes it difficult to plan for future spending. However, given that this is probably the last budget of this Senedd, the sixth Senedd can, and should, be responsible for spending priorities for future years, as we don't know who the next Welsh Government will be, or who will be responsible for setting that budget for next year.

A budget of some £20 billion or so is not just for allocation for running day-to-day services. It is how we set out strategic policies for improving our nation. Looking beyond the impact of COVID-19, Wales is facing some major challenges, and we have to deal with the impact of climate change. Flooding devastated Welsh communities during 2020, and yet we see a freeze in the budget to develop and implement climate change policy, energy efficiency, green growth and environmental protection. We also see a freeze in flood protection budgets and cuts to the funding for the body responsible for preventing flooding and protecting our environment. So, how can we justify cutting the budget of Natural Resources Wales during a climate emergency? That would be like cutting the health budget during this pandemic. Thankfully, this is not happening, and health continues to represent over half of the Welsh Government's budget. However, as is often the case, how you spend the funds is as important as, if not more important than, the amount.

The legacy of the COVID pandemic will be its devastating impact on the mental health of our citizens. Yet mental health continues to suffer poorly in relation to spending on physical health, and I welcome the inflationary rise to the NHS mental health ring fence. But this is still not nearly enough, and I had hoped that mental health and well-being would have its own MEG, and would not be lumped in with the Welsh language. Main expenditure groups should reflect spending priorities, not ministerial portfolios.

Part of the reason why we need a greater focus on mental health is due to the devastation that coronavirus has had on the economy. We are at risk of entering another great depression. Unless we take urgent action to shore up our economic resilience, we face a bleak future, particularly for our future generations. I welcome the emphasis the Welsh Government has placed upon building back better. We have the opportunity to transform the Welsh economy to meet the climate crisis. However, it is disappointing to see the inclusive growth and futureproofing the Welsh economy budget cut by nearly £2.5 million.

The coronavirus has not only caused great damage to our economy, it has also diverted much-needed funding from futureproofing the Welsh economy towards supporting businesses shuttered as a result of efforts to contain the spread of the virus. However, we cannot afford to be short-sighted. We need to invest in transforming the Welsh economy to cope with the changing climate, greater automation and future pandemics. And while we were unprepared for COVID, we can't be unprepared next time, otherwise we won't have funding for schools, hospitals, teachers and doctors. So, we need to deal with today, but we need to prepare for tomorrow, and I don't believe this budget does enough of either. Diolch yn fawr.