9. Debate: The First Supplementary Budget 2021-22

Part of the debate – in the Senedd at 5:46 pm on 13 July 2021.

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Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 5:46, 13 July 2021

(Translated)

Can I start by acknowledging the challenging circumstances faced by Government over the past few years, with the absence of comprehensive spending reviews and assurance in terms of the funding to be provided, and the ad hoc funding coming from Westminster? It's good to understand that we are hoping to move to a more stable cycle now, with two supplementary budgets rather than three, and so on. I'm sure people would welcome that. As a party, we are happy to be pragmatic and to recognise those difficult circumstances as long as the Government and Minister are open and transparent with us as we scrutinise those processes.

I would support the calls for better inter-governmental arrangements. I've been on the Finance Committee in the previous Senedd listening to the Secretary of State in one session saying that there are hundreds of millions of pounds of consequentials coming to Wales as a result of one announcement, but then two minutes later hearing a Welsh Minister say that it's tens of millions of pounds that would come down the pipeline, and that, in my view, doesn't reflect well on the situation that exists. Everyone's left scratching their heads as to where the truth lies, and I do think that both Governments need to rise above that in this ensuing period. It doesn't benefit anyone, and it certainly doesn't help in terms of scrutiny for us as Members, or in terms of ensuring that the additional funding, however much does actually arrive, works as hard as possible in terms of providing the services needed by people in Wales. But that's the end of the sermon there.

Of course, there are two elements to this supplementary budget, as the Minister explained—there's the technical element of restating the budget to reflect new portfolios and, as an opposition Member, I always want more information. It's always difficult to follow the money from one portfolio to another, and I would again echo a plea that's been made in the past, to provide greater detail to us when it comes to those figures.

The second thing—and it is a supplementary budget, but there is a very retrospective feel to this. These are all announcements that the Government is already committed to. We are confirming, to all intents and purposes, the commitments already made, where perhaps I would be eager for us to have more of an opportunity to discuss possible allocations looking forward, and moving forward with the budget within this year. The danger is that the second supplementary budget will also be retrospective in terms of the allocations that happen from here on in, which is a slight frustration, perhaps, from my perspective.

We've heard, of course, that there is £2 billion in reserve which is yet to be allocated, and one understands the risk of things such as a third wave, and the need to ensure that the Welsh Government can respond to that. But I think there is a risk that we are missing opportunities in this financial year. Plaid Cymru has been clear on the need to create more economic stimulus by investing in infrastructure to get the economy moving once again, and the climate change challenge provides a very broad canvas in terms of possible interventions in major infrastructure projects that I'm sure we would all agree need to be delivered. We've also been clear on the need for the Government to put its borrowing powers to work more effectively. The Minister in opening the debate said that she was eager to have more flexibility when it comes to borrowing powers—well, use the powers that you have in the first instance. If you don't believe that you need to use those powers now, as we try and build back better, fairer and greener, then when will that time come?

Now, in terms of some of the allocations—I am aware of time—but in terms of some of the specific allocations, in terms of health, we welcome and recognise the investment of £128 million in terms of recovery and reducing waiting lists, which are frighteningly high, as we would all agree. But we need to go beyond that too and put clear strategies in place with sufficient funding in place that not only restores services and deals with the backlog post COVID, but also allows the work of building a more robust and sustainable NHS for the future, which would allow us to redesign services for the longer term. Health boards have plans in place that need to be implemented and now is the time to create that new infrastructure that creates an NHS that is more resilient and more fit for the long-term future.

And, finally, the £206 million provided to local authorities through the local government hardship fund in the first six months of this financial year is something that local authorities have welcomed, but council leaders are telling me that they’re still unclear as to the intentions for the second half of this financial year. You have suggested that you are committed to continuing funding until the end of the financial year, but is that another £206 million? Is it another sum? Or is that £206 million to last until the end of the financial year? Council leaders tell me that they’re still not clear, and clarity on that would be welcomed, I think.