10. Debate: The Draft Budget 2021-2022

Part of the debate – in the Senedd at 6:21 pm on 9 February 2021.

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Photo of Mark Isherwood Mark Isherwood Conservative 6:21, 9 February 2021

Diolch, Llywydd. Our amendment calls for this Senedd to acknowledge that the Welsh Government's draft budget for 2021-22 does not enable Wales to build back better and recover from the COVID-19 pandemic. The term 'build back better' recognises the need for a growth strategy in the wake of coronavirus that delivers jobs, skills and infrastructure in every corner of Wales and tackles the great unresolved challenges of the last three decades, including 22 years of devolved Labour Welsh Governments. As the Prime Minister stated, when he also announced the UK Government's intention to bring forward funding to accelerate infrastructure projects in Wales, Scotland and Northern Ireland, the UK Government will work with the devolved Governments to identify where we can get spades in the ground, build our communities and create jobs faster for citizens across the United Kingdom. It is therefore regrettable that the public rhetoric of this Labour Welsh Government has instead focused entirely negatively on reactionary buck-passing, attempting to demonise UK Government and blame it for all their own failings. 

The pandemic has shone a spotlight on the failings of successive Labour Welsh Governments in managing our vital public services. In the year before the pandemic, NHS waiting times doubled in Wales, and Wales has retained the highest poverty rates and lowest pay of all the UK nations throughout devolution since 1999. Welsh Government spending has increased by 4.2 per cent to £22.3 billion, 83 per cent provided by the UK Government. Despite Welsh Government claims to the contrary, this month's Wales fiscal analysis by Cardiff University identified £655 million of COVID-19 funding, which the Welsh Government is yet to commit, rising to £760 million, including the pre-existing unallocated spending in its final budget plans.

As for local government, despite the impact of COVID-19, local authorities will receive a smaller increase in their settlements than this financial year. North Wales councils are again receiving a lower average increase than south Wales, and this Labour Government is once again refusing a funding floor to protect councils like Wrexham and Ceredigion, expected to cope with increases of just 2.3 per cent and 1.96 per cent respectively. As the leader of Monmouthshire council highlighted, it's important that the real pressures in local government are addressed and that the Welsh Government makes use of the

'significant consequentials from UK Government funding announcements, some of which remains to be allocated within the Welsh Government's budget.'

As the leader of Denbighshire council highlighted,

'there remain significant public service and financial challenges, particularly for those authorities who will receive a lower-than-average increase.'

The third sector and charities in Wales, at the forefront of Wales's response to the pandemic, saving millions for the public sector, have experienced a dramatic decline in income supporting vital services. As the Wales Council for Voluntary Action response to the Welsh Government's draft budget proposals states:

'The voluntary sector continues to require greater resource to respond to increasing demand on its services.... A thriving third sector has a vital role to play in the prevention agenda', saving money, as well as improving lives,

'and coproduction of services must play a key part in this.'

Responding to this draft budget, the Federation of Small Businesses Wales identified uncertainty about where funding support for business would come from, described the roll-out of business support packages as 'patchy' and expressed concern that this draft budget does not provide enough support for self-employed people.

After I led the debate on palliative and end-of-life care last week, this health Minister announced £3 million extra to support hospices this financial year—welcome, but where is the rest of the extra funding received from the UK Government in consequence of increased funding for hospices in England? And what about next year?

The Welsh Government announced a belated £2.25 million for the National Library of Wales. But this is just a sticking plaster and will not prevent redundancies.

The Welsh Government mischievously claims that the UK Government reneged on promises about agriculture and rural development funding in Wales. The UK Government guaranteed the current annual budget to farmers in every year of this UK Parliament. When this commitment was made, total farm support provided for Welsh farmers was £337 million. For 2021-22, the UK Government has provided new funding on top of the remaining £97 million of EU funding, ensuring the Welsh Government can continue to provide Welsh farmers with £337 million of support next year, if they choose to.

Welsh Conservatives have called on the Welsh Labour-led Government to implement a recovery plan for Wales. It is, therefore, deeply concerning that this draft budget fails to provide the much-needed financial revolution required to deliver this.