10. Debate: The Draft Budget 2021-2022

Part of the debate – in the Senedd at 6:33 pm on 9 February 2021.

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Photo of Mike Hedges Mike Hedges Labour 6:33, 9 February 2021

Diolch, Llywydd—that came faster than I expected.

I would like to cover two areas: firstly, a general budget alternative; secondly, funding for the environment. Where I agree with the opposition: with the Conservatives, if we reduce the cost of the Senedd's Commission, then we'd have more money to spend on services; with Plaid Cymru, I support free school meals to those on benefits. I'm glad they've changed their policy away from free school meals for all pupils, which included those in private schools. Now all I need is a commitment to providing free meals for 52 weeks of the year, as the Welsh Government has done, not just term-time provision. I am looking for a positive response from the Welsh Government to look at the funding of free school meals for those people who are on benefits. I think it's something that needs to be looked at. Passing a resolution today may not be a positive way forward, but we need the Government to commit to looking at that and looking at how much it's going to cost and where the money is going to come from.

In three months' time, the Conservatives and Plaid Cymru, either individually or together, will be hoping to form a Government and set the first supplementary budget. Whilst they have both said how they want to spend money in different areas, where the money is going to come from and which areas are to be cut and which taxes raised remains a mystery. Please, can you publish your budgets, so that people can compare you with the Labour Government, not, 'We'll promise everybody everything because we hope that something will happen'? To help Plaid Cymru, local authorities can borrow prudentially using the prudential borrowing ability, which replaced supplementary credit approval. The key word is 'prudential', not 'borrowing'. Local authorities can borrow if they have the projected forward capacity to service their debts. Using local authorities' ability to borrow, there would need to be a long-term commitment to funding such borrowing, and that is judged by the chief financial officer, and that person alone, as prudential. Also, there's a cap on borrowing for all local authorities combined, except for the Treasury.

Can I just say—the environment is very important to everyone until it comes to budget time? A quick, simple and low-cost proposal is to support small-scale and community renewable energy projects. As part of the budget, we need, as requested by the climate change committee, the second low-carbon delivery plan to be accompanied by an assessment of its financial implications, including costs and benefits and an assessment of the carbon impact of each policy or intervention—also how the additional allocations to the Welsh Government energy service would be used, and if it is adequate and how it will contribute to a net-zero carbon public sector and increase locally owned renewable energy to 1 GW by 2020. Is there sufficient funding to deal with fuel poverty, both that which meets the definition and that which does not, because people are living in cold homes, unable to pay the cost of keeping even one room warm? There's a need for clarification of how much funding has been allocated in 2021-22 to deliver the actions set out in the clean air plan and is that sufficient.

An issue that concerns many of us is animal welfare. Is the level of funding provided for pilot projects to enhance capacity across local authorities' animal welfare inspections and enforcement services sufficient? Is it in the budget, or will local authorities be told it has already been provided as part of the aggregate external finance?

Turning to NRW, my view on the merger that created it is well known, and I will not repeat it. Is it adequately funded to carry out what I and many of my constituents feel are its most important environmental protection duties? We've got problems with the environmental agency dealing with pollution incidents, and, as a constituency Member, I deal with two things: sewage seeping in from a treatment plant into the River Tawe, which is, I'm told by the local angling club, fairly regularly, and also the burning of plastic off wire in the area, which—it seems to have no interest in it, Natural Resources Wales, whatsoever, whereas the old environment agency used to enforce it, and I think that things have gone massively backward. And if more sewage in the river and burning of plastic off wire and the resulting pollution has a low classification in the classification system in NRW, I'm not sure what has a high classification.

Can I just finish by saying something about local government? I think that one of the problems is we keep on talking about the percentage increase. We've got to look at how much local authorities have to spend, and some of that is the money they raise themselves from council tax; some of it is the money that they get from rents and other services that they provide. Now, councils like Swansea and Cardiff actually get quite a lot in in money they get from car parking in normal times—other authorities get a lot less. So, you need to look at the total funding of local authorities and a percentage increase—. Can I just say about Ceredigion, it might have had a very low increase, but it still gets above the top half of local authorities in aggregate external funding? So, if you're going to look at local government, you need to look at it as a whole, about local authorities' ability to raise money as well as what they get from the Welsh Government. So, I think that there's a big debate and a lot of discussion needed for this, and I hope we can do that at a future date.