3. Debate on a Statement: The Draft Budget 2022-23

Part of the debate – in the Senedd at 3:53 pm on 11 January 2022.

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Photo of Alun Davies Alun Davies Labour 3:53, 11 January 2022

I'm grateful to the Minister for her statement opening this debate. I noticed that the Minister seems to be making a great deal of notes during this debate. She's always welcome, of course, whenever we're debating these things, but I'm sure she's been as shocked as I am during this debate that, having spent 10 years listening to Tories lecture us on austerity, lecture us on being very careful with the public purse and the rest of it, we've just had a number of Tory speakers standing up and spending a million quid with every breath they take. We've had Gareth Davies demanding more money for investing in social services. I tend to agree with him, as it happens, but it's his Government that's been cutting it in the first place, of course. Janet Finch-Saunders bemoans the lack of investment in climate change when she has a Government that barely believes in it in Westminster and has certainly cut back on investment on the other side of the border. And poor old Peter Fox, of course, wants to spend money on everything, just in case. So we have had a Conservative debate this afternoon that has been entirely rooted in spending public money that they themselves are involved in cutting. There is a word for that. I won't test your patience, Deputy Presiding Officer, this afternoon, but there is a word for that, and it was used quite freely in Westminster at lunchtime.

Let me say this: I think in terms of the debates that we have on our budgets in Wales, we need to focus more on income than on expenditure. Anybody can spend money. Anybody can stand up and demand more funding for every subject under the sun. I welcome the conversations that the Government has had with Plaid Cymru and with the Liberal Democrats. I see the influence of both those parties on this budget, and I think it's something to be welcomed. I also notice that the contributions from Jane Dodds and from Plaid Cymru Members this afternoon have been far more rooted in reality and rooted in delivery than the fantasies we've heard from Conservative Members. But let me say this in terms of not spending, but raising funds: I'd like to understand more from the Minister how she is looking at her budgets over the coming years. Because it's fake, of course, for the Conservatives to argue that this is the most generous spending agreement or settlement that we've ever had. It's the easiest thing in the world to look at the cash numbers and say this is more than last year, and that's more than the year before. That's basic arithmetic. It's not the reality, though, and it's not the reality that we've had over the last decade. I remember Peter Fox very well as a local government leader; I don't remember him once telling me that he would prefer to be an English local government leader than a Welsh local government leader when he was dancing a very neat little dance around the words of Andrew R.T. Davies in the Chamber being thrown back at him in other meetings. But I don't blame him for that either.

But let me say this: Brexit is having a ferocious impact on our public finances. It's already been mentioned, and Rhianon Passmore spoke about the utter betrayal of Welsh communities; £375 million the Secretary of State promised would be maintained at a Finance Committee last year—he made that commitment on the record to Members here, and Members will remember that. It was to the External Affairs and Additional Legislation Committee, actually; I think the Deputy Presiding Officer was in the Chair during that meeting. We've received £46 million. Either he was seeking to mislead us at the time, or he's misled us since then. Since we've now got a Prime Minister who misleads people every minute of every day, we don't know the answer to that question, but what we do know is that we've been misled, that people up and down Wales have been deeply misled, and that public finances are much the worse for that. But we also know that Brexit is reducing our gross domestic product by an average of 4 per cent. That's going to have a direct impact, of course, on our tax take and the ability of the Welsh Government to meet its commitments in terms of taxation, and I'd like to understand how the Minister is seeking to address that. 

I also want to raise the issue of rail investment. We've seen again the Tories not investing in Wales. Peter Fox finished his opening contribution by saying that this budget recognises the place of Wales in a strong union. What it actually does is recognise the weakness of Wales in a union that doesn't give a damn about Wales. That's what it really does. If you look at the—. Well, Janet can shake her head, but the numbers speak for themselves. We are not seeing the investment in rail infrastructure that we are seeing in Scotland. We are not seeing the infrastructure investments in Wales that we're seeing across the border in England, and why is that? It's because a Tory Government in Westminster doesn't want to spend the money in Wales. Simple as that. I'm happy to take an intervention if any of those Members wish to do so.