6. Debate: Draft Budget 2022-23

Part of the debate – in the Senedd at 4:47 pm on 8 February 2022.

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Photo of Peter Fox Peter Fox Conservative 4:47, 8 February 2022

And, once again, this is what we have ended up with. Minister, this debate is an opportunity to gain genuine cross-party support for your spending plans as well as to ensure that your budget puts Wales on a better path. Will you meet with me and colleagues from this side of the Chamber to listen to our concerns as well as those of stakeholders, and to consider our plans to ensure that the budget delivers on its priorities? 

Touching upon the Labour/Plaid agreement, which still seems to be a type of coalition in all but name, some concerns have been raised, such as by Wales Fiscal Analysis, that the agreement includes significant additional spending commitments. For example, as we've heard, expanding free school meals could cost an additional £86 million a year; expanding childcare provision could cost an extra £40 million-odd a year; and creating a national care service will need an extra £200 million a year at the very least. Well, we can see that Plaid Cymru certainly aren't a cheap date, are they? There remains questions about the deliverability of some of these commitments. For example, Minister, how do you respond to concerns from the Welsh Local Government Association about the apparent lack of additional capital funding to invest in schools' catering facilities to deliver on the school meals policy? The WLGA have also stated that the draft budget does not make allocation to reform the arrangements governing how people currently pay for care. Do you agree with this? Minister, could you also provide clarity on the future financial planning you have undertaken to cost and fund the co-operation agreement policies? And does this include increasing Welsh rates of income tax at some point?

Deputy Llywydd, exploring further, the draft budget front-loads a substantial amount of additional funding for the NHS, and I still question how this will impact on medium to long-term financial planning for services. How does the Minister respond to the significant concerns of the health committee about the failure of many of the health boards to achieve financial sustainability and the constant need for Ministers to bail them out? Furthermore, what impact will the £98 million reduction in the NHS core capital allocation have on the much-needed transformation of services, as highlighted by the NHS Confederation?

Now, whilst I welcome the increase in the local government settlement, there are still concerns that with all of the pressures facing councils, many will be left with little additional room to manoeuvre. Is the Minister considering any further allocations to local government so they can invest more in their local areas rather than merely meeting inflationary pressures? Meanwhile, there are still long-standing issues about the local government funding formula and, in particular, that the funding gap between the highest and lowest funded councils has widened yet again. Does the Welsh Government intend on finally reviewing and overhauling the formula so all councils get a consistently fair settlement, regardless of whether they're a rural or urban council? Now, I know the stock answer—we've heard it many times—but this is where Government need to lead, and lead from the front and take charge of this.

There is also the issue of climate change. Whilst I welcome the £1.8 billion capital over the next three years for green investment, £1.6 billion of this is allocated to decarbonising social housing, leaving just £200 million capital for other investments. Clearly, this can't be enough.

Before I finish, Deputy Llywydd, I just want to touch upon the future of EU funding. Throughout the budget process we have heard the Welsh Government constantly bashing the UK Government over the issue, indeed Members were waxing lyrical earlier today. Wales will continue to benefit from EU-funding tail-off until 2024-25, with the UK Government gradually topping up the remaining amount. It just seems as if the Welsh Government is happy scaremongering about Wales's future outside of the EU rather than looking at opportunities to level up our communities. Ministers talk about replacing programmes being a threat to devolution, but why should we not trust our councils and communities to deliver the changes that they want to see? Surely, we in this Chamber believe in the principles of subsidiary, don't we? Do Ministers really believe that the powers should just stop in Cardiff Bay?