Diolch, Dirprwy Lywydd. I move the Commission's budget motion for 2023-24, and ask that it be incorporated into the annual budget motion. As you will have seen in the budget document, the Commission is seeking a total budget of £67.643 million, comprising £41 million for Commission services, £17.8 million for the remuneration board’s determination, £101,000 for the office of the standards commissioner, £547,000 for costs associated with providing support to the independent remuneration board, and £8 million for interest and non-cash items. The total budget represents a 4.06 per cent increase on the current year’s budget.

Now, as Members will know, the 2023-24 draft Commission budget was laid on 28 September. It was then scrutinised on 5 October, and the Finance Committee's report was published on 21 October. To meet the requirement of Standing Orders to lay the Commission's draft budget by 1 October, work to prepare and develop the budget was carried out during the summer term and then finalised in August this year. In parallel to this timeline, unprecedented political and economic events have meant that the resulting budget has been overtaken by the emergence of a new reality regarding public finances. Although it's too early to assess the full impact on the Welsh public purse of the UK Government's autumn statement, we note the increase of £1.2 billion in the Welsh block over the next two years. The increase of 4.6 per cent in resource funding between 2022-23 and 2023-24 is, however, far below inflation, and this may impact significantly on the Welsh Government's ability to support the most vulnerable in society and secure the short-term future of the vital public services on which we rely. The Commission therefore now considers that its 2023-24 4 per cent budget increase will require revision to reflect the additional pressures facing the entire wider public sector in Wales.

In light of this, I will commit to an in-year review by the Commission, as a responsible public body, to find savings and to accelerate efficiencies. This will reflect the reality that we face today, rather than that which existed during the budget-setting process over the summer. It is an exercise in responsible and agile pragmatism. We had already committed to carry out this work in time to incorporate it into the 2024-25 budget, but I am now proposing that work is brought forward at a faster pace. This is in line with the Finance Committee's statement of principles, which states that directly funded bodies should continually seek to improve processes and accrue efficiencies.

Now, we are determined to ensure that any planned activities and services to Members are both efficient and sustainable. It's important for us, therefore, that any reductions are conducted effectively, and continue to support our commitment to effective workforce planning and well-being. This, however, will not be an easy task and will impact on Members. I've shared my proposals for savings and accelerated efficiencies in a letter to the Chair of the Finance Committee earlier this week, and stressed that we will be required to take extremely difficult decisions. We hope that Welsh Government and other public bodies will follow this responsible principle in the weeks to come, as savings are sought, to adapt to the more severe economic landscape that has very recently formed.

Returning to the substance of today's budget motion, the Commission exists to support the Senedd and, of course, its Members, and the pressure on Members remains significant. We've prepared a budget that we think is transparent and fair. We've seen some unavoidable budget increases—for example, to meet increased utility costs. We've sought to make savings elsewhere to mitigate the full effect of these price rises. You'll also see that we have explicitly identified the budget to meet the estimated costs of Senedd reform. In order to be ready to support the potential increase in Members from 2026, work needs to start now, and the budget for 2023-24 recognises that we will need to bring in new skills and additional resource to meet this challenge robustly and properly.

Now, the new normal is still emerging from the pandemic, but it is clear that staff are working effectively in this hybrid environment. We continue to engage with staff to monitor health and well-being, and we've invested in flexible office space for Commission staff, so that everybody working on the estate is still able to do so easily and safely. I'd like to thank the Finance Committee for its scrutiny of this budget, and its continued commitment to ensuring the budgets are set at an appropriate level, whilst continuing to ask challenging questions, which help us drive performance and deliver excellence.

Now, the committee made eight recommendations, which we have addressed in our response. The first was that the Senedd supports this budget, which we note and appreciate. Four were focused on the Senedd estate, one looking at how we can mitigate the ever-increasing utility costs in the short to medium term, and then, longer term, giving consideration to our future requirement for and use of building space—those in Cardiff Bay, and elsewhere in Wales. The Commission will look to implement measures to reduce usage and, ultimately, cost, by taking many of the steps we'll be taking in our own homes. With regard to the longer term estate strategy, a working group is being formed to consider what our future needs look like, including the impact of Senedd reform, and to consider what options best meet those needs.

Two recommendations were focused on staff well-being, specifically how Commission staff are being supported during the cost-of-living crisis. The Commission already offers a number of programmes and mechanisms to offer support, and these are regularly reviewed with our trade unions. The final recommendation sought to engage Members, to gain their views on the work they would like the Commission to take forward and how that work can be managed within existing budgets, or, indeed, incorporated into future budget proposals. We have accepted these recommendations, and we are, as ever, open to suggestions on how to improve the budget process. We're also willing to answer any questions that Members may have. In the meantime, I present this budget forward, on behalf of the Commission, and reiterate our commitment to working in a way that is open and transparent, delivering the best possible value for money for the people of Wales.