Part of the debate – in the Senedd at 4:57 pm on 9 March 2021.
Whilst there are some aspects of the Welsh Government's budget that are welcome, such as the additional moneys for the NHS, overall there is much to dislike in this spending plan.
One of my major concerns is regarding the lack of business support. The coronavirus pandemic has not just been a health crisis; it has been an economic disaster. Wales experienced the greatest increase of economic inactivity of any UK nation. The economic fallout of our response to this pandemic could be felt for generations. We don't yet know the true economic cost of this pandemic; how many businesses will have to permanently shut their doors; how many jobs will be lost; and how many people will be forced into poverty as a result. Twenty-eight per cent of people in parts of my region are already living in poverty. How many young people will have had their life chances diminished? Many economic forecasters believe the fallout from the pandemic could rival the great depression of the last century. The UK saw its biggest fall in output for centuries—the biggest fall in annual GDP since the great frost of 1709. So, while we received some welcome news from the OBR that the UK economy will grow in future years, the fact the global economy will continue to flatline does not paint a great picture. It is therefore vital that we do all we can to limit the damage. The fact that the Welsh Government has failed to deliver a comprehensive programme of business support in this budget is deplorable.
It's also ironic that, earlier this afternoon, they chose to enact the socioeconomic inequalities duty of the Equality Act 2010. So, while it's true that the Welsh Government have some of the UK's most generous business support, it is also true that far too many businesses and people are left behind. Far too many businesses do not qualify for support, because the Welsh Government doesn't approve of their business sector, and those that do qualify find the application processes confusing, and they themselves are confused. The fact that local authorities are the arbiters of some support packages has led to a postcode lottery of support, with identical businesses receiving different levels of assistance, because of to whom they pay their business rates.
We had the perfect opportunity to introduce a tailor-made business support package to help the Welsh economy weather the COVID storm and recover, but this budget has failed Welsh businesses. As a result of the UK Government's pandemic spending, Wales received an additional £0.66 billion pounds. Of the additional £30 million resource spending allocated to the economy MEG, not a single penny was spent on helping Welsh businesses. Half of the moneys are to be spent on bus support and the other on workplace learning. And whilst both are worthy causes, that's not what the Welsh economy needs right now. Where is the shot in the arm that the Chancellor of the Exchequer promised English businesses? Sadly, Welsh business continues to be let down and left behind by this Welsh Government, and as a result, the people of Wales will suffer and poverty will continue to grow, despite the Welsh Government's new duty to tackle socioeconomic inequalities. Diolch yn fawr. Thank you.