6. Debate: The Second Supplementary Budget 2021-22

Part of the debate – in the Senedd at 4:01 pm on 15 March 2022.

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Photo of Peredur Owen Griffiths Peredur Owen Griffiths Plaid Cymru 4:01, 15 March 2022

The committee welcomes the increase in allocations provided by this supplementary budget, as well as the steps taken by the Welsh Government to mitigate the impacts of the difficult economic challenges we are currently facing. The committee's report was laid before the Senedd yesterday, and, as we heard from the Minister just now, we made 11 recommendations.

I'd like to begin by supporting the Minister's efforts. The committee firmly believes that good budget management can only happen when the Welsh Government is given accurate information about the funding it receives from the Treasury. Sadly, this is a recurring problem, so we are disappointed that this issue continues and that no improvements have been made. We therefore share the Minister's views that further clarity is needed from the Treasury on the amount of funding received within financial years, as well as the timing of such transfers. However, the committee accepts that it's not enough to point the finger solely at the UK Government; the Welsh Government could do more in this area too. That is why the committee reiterates calls for the Welsh Government to publish its own calculations on in-year consequentials and transfers it expects to receive from the UK Government. This would ensure that any transfers of funding are calculated in the line with the agreed methodology, and is particularly important when different figures are being quoted by the Welsh and UK Governments, as has been the case recently. 

Effective budget management across financial years also requires flexibility. Previously, the Treasury has provided a full year for the Welsh Government to spend any funding received late in the financial year. The committee was therefore disappointed that this was not allowed this year, and supports calls for this to be provided as a matter of course, so that the Welsh Government can allocate budgets strategically without fear of funding being lost.

Turning to the specific issues, the Minister has, quite rightly, prioritised efforts to support those affected by the cost-of-living crisis through this supplementary budget. As Chair, I have previously emphasised in this Chamber that developing a 'no wrong door' policy is crucial, so that financial support reaches those that need it most. Members do not need reminding that households are finding it increasingly difficult to make ends meet, and that there will, sadly, be an increased demand for support over the next few months and years. The committee therefore calls on the Welsh Government to raise the profiles of grants and schemes designed to address the cost-of-living crisis, and reiterates its call for the development of an integrated system of support in response to the financial pressures many households are experiencing.

As we continue to recover from the pandemic, the committee very much welcomes the additional funding allocated to the health service through this supplementary budget. Although it was encouraging to hear from the Minister that this additional funding is already having an impact, particularly on waiting times, tangible details were scarce. We therefore recommend that the Welsh Government sets out its targets for reducing waiting times in its budget documentation from now on, including the outcomes and impacts expected from additional NHS funding.

In the midst of the pandemic, we must not forget that social care services continue to face unprecedented pressures, and that further measures are needed to acknowledge the great work of our social care workforce and take steps to make the profession more attractive. The committee welcomes the Welsh Government's efforts to reward care workers financially, however, we believe that more can be done to promote the financial support available to all carers, but particularly unpaid carers and those working in hospices.

On transport, the committee notes that bus and train services have been severely impacted by the loss of revenue caused by the pandemic and welcomes the additional funding allocated to support the continuation of these key services. However, the committee was not convinced that the additional £22 million allocated for bus services was sufficient, and asks the Minister to provide further information regarding how the amount was determined, as well as the objectives and expected outcomes for this funding.