9. Debate: The First Supplementary Budget 2021-22

Part of the debate – in the Senedd at 5:32 pm on 13 July 2021.

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Photo of Rebecca Evans Rebecca Evans Labour 5:32, 13 July 2021

Diolch, Llywydd. This first supplementary budget of 2021-22 once more focuses squarely on the Welsh Government's response to the pandemic. It regularises the important allocations that the previous Welsh Government made to help us and our partners respond quickly and effectively to the impact of coronavirus. It also provides an opportunity to make technical changes that restate the budgets of the Welsh Government in line with the new ministerial portfolios arising out of the new administration, as well as reflecting adjustments from recent UK fiscal events.

This budget increases the overall Welsh fiscal resources by over £1.1 billion, with a 5 per cent increase on the position at the final budget. Our fiscal spending plans have increased by a total of £793 million, an increase of 4.1 per cent since the final budget. This budget includes over £700 million of allocations to departmental budgets, and £627 million are allocations from the COVID-19 response reserve. A key priority has been to support our NHS and its workforce as it continues to experience unprecedented strain caused by the pandemic. For this, the Welsh Government has provided additional funding of £100 million to be used across primary, community and secondary care. To support the Welsh economy, we have allocated £352.2 million to extend the business rates holiday for the retail, leisure and hospitality sectors, support that will extend to the end of this financial year, some six months longer than the equivalent relief provided in England. We have provided £55 million to help businesses as they prepare for more normal trading conditions.

We have provided over £39 million for the continuation of the Recruit, Recover and Raise Standards programme to support teaching and learning, with a particular focus on support for the most vulnerable and disadvantaged learners. A further £19 million has been allocated to ensure children continue their learning progress following disruption during the pandemic, with a focus on the well-being of children and staff. An allocation of £33 million has been made to further education and local authorities to support learners in colleges and sixth forms to fund additional teaching time, and £6 million has been allocated to support 1,400 trainee teachers currently in initial teacher training to complete their qualifications and move into full-time teaching.

Access to leisure, recreational, sporting and cultural events for children and young people is critical in the recovery from the effects of COVID-19. This is why we're providing an extra £4.5 million to local authorities to stage activities as part of the Summer of Fun. And we're allocating £2 million to the residential outdoor education sector for support to cover essential operating costs. The cultural recovery fund has provided vital assistance to individuals and to a sector facing decimation had the Welsh Government not stepped in to provide vital support. That is why we're allocating £30 million to extend the fund and support Wales's diverse culture through the challenges that they face. 

In order to support Transport for Wales to meet the operating costs of the rail network from September until the end of November, we have allocated £70 million. And a further £100 million has been allocated for non-COVID-related measures, such as the exciting new international learner exchange programme, vital support for Cardiff Airport and allocations relating to transfers from the UK Government. 

I welcome the Finance Committee's recognition of the ongoing difficulties caused by the UK Government's lack of clarity regarding policy decisions that have funding implications for Wales. This uncertainty has a detrimental impact on our funding settlement, placing us at a perennial disadvantage when planning and managing our budget. I continue to press the UK Government to provide greater fiscal flexibility with borrowing and the Wales reserve. 

Against the background of the pandemic, it is imperative that our calls are recognised to support effective financial planning to enable growth and recovery. I thank the committee for its consideration of this budget and the publication of its report. I'll provide a detailed response in due course, but I am minded to accept the recommendations. I continue to work with colleagues to identify pressures related to both the pandemic response and opportunities to fund COVID recovery measures, and will be making further announcements in due course. All further allocations will be regularised in the second supplementary budget later this year. I ask Members to support the motion.