16. Debate: The First Supplementary Budget 2022-23

Part of the debate – in the Senedd at 6:27 pm on 12 July 2022.

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Photo of Llyr Gruffydd Llyr Gruffydd Plaid Cymru 6:27, 12 July 2022

I'll start with reference to the over-allocation against the general capital budget. Obviously, because of inflationary pressures, that is coming under considerable pressure, probably reflected in the fact that the over-allocation in the supplementary budget before us is £68 million, or just over £68 million—down £7.5 million from the final budget. I'd ask, maybe, that you could give us some information about where you're likely to be disinvesting, or at least what process you used for prioritising or deprioritising that particular spend.

I'd like to reiterate some of the comments around support for people from Ukraine. I very much welcome the allocation of an additional £20 million from reserves for emergency financial assistance for local government to support the response to the crisis in Ukraine. We can all be very proud of the Welsh response and the fact that Welsh Government spending is going above and beyond the funding provided by the UK Government.

It is hugely worrying, on that, of course, that the UK Government has raided devolved budgets to pay for non-devolved military spending, and I'm wondering what impact that will have—losing that £30 million—on the budget for this year, particularly in relation to investment in health, education and other key areas. Does this not set a dangerous precedent, in that it could happen more often? What it does do, of course, is highlight how fragile and how weak the devolution settlement is in reality, when the UK Government can take away money that's rightly ours.

I'd reiterate comments by the Chair of the Finance Committee about the disappointment that funding received by the Welsh Government from the UK Government to support Ukrainian refugees doesn't extend beyond the current financial year. The zombie Prime Minister that we have in Westminster, who's in post but not in power, tells us that the UK is in it for the long haul on Ukraine. Well, that's clearly not the case when it comes to supporting Ukrainian refugees, and I would ask you to assure us that regardless of whether the UK Government provides funding, the Welsh Government will do everything it can to continue its support for those from Ukraine who need it.

The question about health has been asked. We are aware that—. Given that health boards weren't able to spend their additional funding allocations last year, can you give us assurances that additional funding for health to help tackle waiting times and the planned-care backlog this year will be utilised fully? 

Finally, in the face of the cost-of-living crisis, of course, there is increasing demand for public sector pay to keep pace with inflation. Now, the UK Government's policy is to bury its head in the sand, which could well lead to a summer of discontent. I'm hoping, clearly, that the Welsh Government takes a different approach, and maybe you could tell us a bit about what scope there is in your budget this year to meet any potential increases in public sector pay, because it's wholly unacceptable that our public sector workers are going through the wringer at the moment, whilst the rudderless UK Government is just going through the motions.