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

Part of the debate – in the Senedd at 4:42 pm on 12 January 2021.

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Photo of Huw Irranca-Davies Huw Irranca-Davies Labour 4:42, 12 January 2021

I'm not a member of the Finance Committee, so what I'm going to say is very much to do with the impact on my constituents and how I think this budget is going to work. It is a very difficult budget, as Mike Hedges said to us in his very good contribution, as Mike always does. He said, 'This is as good as you're going to get with the money that you've got', and I agree with him entirely. This is hugely difficult. It would be fair to say we've got a disappointing budget settlement with a single-year spending round, and this will have a major impact, not just on Welsh Government, but on local government, on health services, schools and colleges. It is, I have to say, as Mark Isherwood was just saying, on the whole of our crucial third sector and voluntary organisations. But we're having to make do with what we've got here, with a one-year budget settlement, with a core revenue budget for day-to-day spending per person down 3 per cent compared to what it was in 2010-2011, and a capital budget that is down 5 per cent compared with last year. This is not good news.

Unfortunately, we still don't have the clarity that we need and that we deserve and that we were promised on post-EU funding. We don't know the detail on the levelling up fund. Are we going to get the money that we were promised that is so essential for communities like mine, who've benefited from that funding from EU programmes for so many years? We just don't know. And, of course, on top of that, we've got the uncertainty over the pandemic and the Brexit longer term financial planning. So, setting revenue and capital plans for a single year is not ideal, but, as Mike says, this is about as good as we're going to get with the money that we've currently got and the certainty we've got from the UK Government.

Having said that, I think it is a question of setting priorities, and I agree with the headline priorities that have been set. The idea, at this moment, in the middle of a global pandemic and the crisis that we have, is about protecting public health and it is about protecting jobs. On that basis, it is also about using this opportunity to do things differently with that greener future—changes for a fairer, more equal society. That means working closer to home, it means investing in our town centres, it means giving those opportunities so that people don't have to commute long distances, that they can work from either their own homes, with big investment in digital infrastructure, or from regenerated town centres. It is about creating that army of highly skilled, well-paid, high-quality energy efficiency installers in every community, delivering not just warm homes and good local jobs, but helping us tackle our climate crisis, as well as the jobs crisis.

But within this budget, I have to commend the Minister for, with difficult prioritisation, finding money for some really important things, the extra money, the extra £420 million towards health and social services is hugely welcome. I would ask the Minister whether or not she can confirm that the continuing transformation that we set out on a couple of years ago, actually bringing together more seamlessly health and social care so that we get bigger bang for our buck, is still going to be delivered and not lost as we deal with this current pandemic that is still on the cards.

I very much welcome the investment, not only in housing and building new homes, but also the investment in homelessness and in tackling the scourge of rough sleeping as well. We know that, last year, over 4,000 people were brought into temporary accommodation since March. Many of us said how remarkable that was and the policy thrust that helped to deliver that, not just the investment. So, I'd like to ask the Minister what discussions she's had with other Ministers, not just on the impact of this house building that is being done, including on creating and keeping jobs at this important time, but also the sufficiency of this funding to continue that battle and win that battle to end rough sleeping and homelessness.

I do welcome the investment in local government, that extra £176 million will help, without a doubt, not only in schools and social care, but the local services that have been critical in responding to the pandemic, but I also have to say, Llywydd, the 10 years of hollowing out our local authorities and public services through austerity, as well. It will help. But, of course, the critical question for all of us in representing our constituencies: is there any chance that the UK Government will help us to go even further to restore our public services beyond the pandemic, beyond post EU transition to the levels that we want to see, the levels our constituents deserve after they have been hollowed out after 10 years of austerity?

I do welcome as well, Llywydd, the investment in education, the investment not just in education, but also in retraining and reskilling, because we know there is going to be a generation of young people that are uncertain about their school environment, but are uncertain about the jobs environment as well that we currently face with the crisis with employment. So, I would ask the Minister—the investment that is there, the £12 million on catching up on missed education, the £6 million on communities and work plus, and the upskilling and the retraining, is there any chance that we will be able to see more in the years going into the sixth Senedd in future Governments if we have that commitment from UK Government, if we have more money coming into Wales so that we can put more investment into those skills and training for young people who will want to see hope for the future as well?

Finally, can I simply say, Llywydd, because I don't keep an eye on the time, and I'm sure I'm running out of time here—