Part of the debate – in the Senedd at 5:55 pm on 13 July 2021.
Diolch. I'd like to thank all Members today for their thoughtful contributions. This first supplementary budget is an important part of the budget process, allowing changes to be reported to and scrutinised by the Senedd, and I do welcome the constructive debate that we've had this afternoon. As I outlined in my opening remarks, although we've regularised a number of previously announced allocations from reserves to continue our response to the pandemic, this budget does return us to the more routine practice that we developed in terms of supplementary budgets that are more technical in nature.
We've adopted a targeted and responsible approach that focuses on the immediate support needed in the context of a fast-moving pandemic, and have responded decisively to support the Welsh economy and ensure our public services were equipped to deal with unfolding circumstances.
I think it's important to recognise that finance Ministers around the world have chosen to give themselves flexibility by maintaining an appropriate level of reserves, and, of course, that applies equally to the Chancellor who is holding significant reserves in order to continue to respond to the crisis. And in Wales, of course, we've been no different. We're holding COVID reserves to retain that flexibility to allow us to respond.
As I have outlined to the Finance Committee though, we have agreed a further £26 million to extend the funding available within the local government hardship fund for social care, and, in addition, I've allocated an additional £10 million to the local authority hardship fund for the homelessness emergency response; an additional £4 million to help people self-isolate, extending that support until the end of March 2022; and £1.5 million to provide Wales and Africa COVID emergency grants. And I will be intending to make further announcements in the coming weeks.
I also think it's important to recognise at this point that the nature of the COVID reserve is that it's non-recurrent, so we cannot rely on any of this funding being available next year, and that does provide us with some additional challenges in terms of the kind of interventions that we would wish to put in place.
I did mention the local government hardship fund, and I do want to put on record the fact that I have given local authority leaders that confirmation that it is my intention to keep that fund in place throughout this financial year, and officials are currently working with officers in the Welsh Local Government Association, and in local authorities, to understand the need that is related to that particular fund for this year, because I do recognise, as others have, how critical it's been to supporting local government's response to the pandemic.
I do welcome the Finance Committee's comments in relation to their interest in Welsh Government's relationships with the UK Government, and, of course, I am as keen as anyone that there should be strong engagement and co-operation between the UK Government and Welsh Government, particularly following the COVID recovery summit. But, now, we need to see that borne out in action and a real step change really in the way in which the UK Government interacts with the Welsh Government, and particularly so, I think, in terms of finance.
The COVID guarantee that we had last year was a really helpful innovation, and that's something that I was involved in designing, to ensure that it met our needs here in Wales. But, this year, it's been much more difficult because the UK Government has made announcements since we've received our COVID funding earlier on this year which we simply don't know whether or not they're covered by that guarantee. They made large announcements of funding on education for example, and we don't know yet whether that is additional funding, if it's previously announced funding, or funding moved from elsewhere in UK Government's budget. So, this has been quite some time now since they've made that announcement, so it's really not acceptable for us not to be able to have that clarity that we need in terms of that funding.
I also want to just briefly mention the additional funding for health. I'm working currently with the health Minister to determine what additional funding health might need on top of that £100 million in order to support it through the rest of this financial year, with that real focus on recovery. But the £100 million that's already been announced is very much there to help to start to address the backlog, and that funding was announced when we published the 'Health and Social Care in Wales—COVID-19: Looking forward' document, and it will be used across primary, secondary and community care, to reduce inequalities and improve the capacity for planned care. But, as I say, there will be further announcements made on that and a range of other matters later.
And just to address the issues raised about Cardiff Airport, that funding is very much there against a five-year plan for the rescue and restructure of the airport. And we've agreed that investment by way of a grant of up to £42.6 million over a five-year period, to enable the airport to restructure its operations and secure its long-term viability. And, again, I would say that this is not unusual—it's not unusual for Governments to be supporting airports in this particularly trying time for that sector.
So, I just start to conclude by noting the comments about the importance of transparency and the importance of scrutiny. And I give my commitment to this Senedd that I will continue to be as absolutely transparent as I'm able to be, and to welcome scrutiny, and welcome challenge, of course, at all times during the budget process. And just finally, this supplementary budget continues to fund the range of measures that we've put in place to respond to the pandemic. I've mentioned that there'll be further allocations, but those will be featured in the second supplementary budget, which I intend to bring in due course to the Senedd. I move the motion.