9. Debate: The First Supplementary Budget 2021-22

Part of the debate – in the Senedd at 5:42 pm on 13 July 2021.

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Photo of Peter Fox Peter Fox Conservative 5:42, 13 July 2021

I'm pleased to be part of this debate today and I thank you, Minister, for your opening statement. There is no doubt that the pandemic has pushed Wales to the cliff edge and it just shows how important it is that Wales remains an integral part of a strong United Kingdom. After all, the robust measures swiftly implemented by the UK Conservative Government to the tune of £8.6 billion in funding since the start of the pandemic protected hundreds of thousands of jobs, with livelihoods across the length and breadth of Wales being shielded from some of the most severe effects of the pandemic. This support is in addition, of course, to the UK-wide schemes such as the coronavirus job retention scheme and the self-employment income scheme.

But, Llywydd, on initial reading of the supplementary budget, I was shocked to note that there is still roughly £2 billion worth of unallocated money sitting in the Welsh Government's coffers; £1.2 billion fiscal and the balance made up in capital. This is a highly significant sum of money, which I'm sure all in this Chamber would agree. Time and time again, we've heard Welsh Government Ministers—and rightly so—calling for funding to deal with the pandemic. But to then not use all of it at a time of national emergency simply doesn't make sense. Llywydd, it's very much like being given money to hire a builder to prevent your damaged ceiling caving in, to then decide not to use all that money given to you, meaning the risk remains. The people of Wales need that investment now so that they can start to build back better. More so than ever before, we desperately need a sustainable long-term recovery plan for our NHS, our schools, businesses and vitally important local authorities. So, Minister, where is your plan to invest this unallocated £1.2 billion? When will services see the funding that they so desperately need?

Minister, as much as I welcome any credible move to kick start our economic recovery, I will still however point out areas of weakness. The reason for this isn't political, but it's what a reasonable opposition should do. That is why I'm somewhat dismayed that swathes of the supplementary budget will only touch the surface of what is actually required to help Wales bounce back from the pandemic. Take for instance the local government hardship fund, which finished in June, meaning councils are now facing a cliff edge financially. Or the extra cash announced for our cherished NHS being just a drop in the ocean, or the shocking fact that there appears to be no extra support for our rural communities, despite the crippling effect the pandemic has had on these rural areas. In other words, many of the measures outlined in the supplementary budget are either short-term funding or initiatives that have closed, but these initiatives are needed to provide long-term support.

Finally, Minister, I know that the pandemic has had a detrimental impact on the transport sector, and I recognise that the Government has provided additional support, such as the £16 million to Cardiff Airport and £70 million to Transport for Wales. However, it is worth noting that, as was mentioned in the Finance Committee Chair's report, this was on top of the Government writing off £40 million-worth of Cardiff Airport's debts and an additional £167 million given to Transport for Wales last year. Clearly, this isn't a sustainable way of running services. Can you tell me whether the Welsh Government is facing a future financial black hole because of this? What are your plans for putting these services back onto a sustainable financial future? Time is of the essence here. We need a bold, ambitious plan to ensure Wales bounces back post COVID. We all need now to act in Wales's national interest, which is why I sincerely hope, Minister, you will heed my calls today. Thank you, Llywydd.