In terms of the position that we are facing, of course, many of the pressures that the Welsh Government faces are also the same pressures that local government themselves are going to be facing, as has already been referred to. And it would be useful, I think, if we had a sense from the Government as to what you believe now—. We will obviously see the local government settlement detail in due course. What is the quantum of the funding gap that local government is facing following the publication of the draft budget? We've seen different local authorities quoting different figures, haven't we, in the last few days. Rhondda Cynon Taf—. The head of the WLGA—the leader of the WLGA—referring, I think, only this morning to a £47 million budget gap, and that's repeated authority by authority across Wales, and you tot up the sums and you come up to a very, very considerable figure indeed. So, it would be useful to get, certainly, acknowledgement from the Welsh Government that there will remain a funding gap. And those local authorities are going to face a very difficult financial decision-making challenge themselves, aren't they, between cutting services or hiking council tax, possibly by double figures, as Peter Fox referred to in some cases, or probably doing both in many cases as well.

To what extent has the Government, in that context, looked at things it can do to help local government, for example, lifting some of the expenditure pressures that they might be facing? Some local authorities have raised with me, for example, the money that they have to pass on to the new corporate joint committees. Obviously, we're not massive fans of the corporate joint committees on this side, but it's not the reason that I'm raising it in this context. Postponing some of these necessary financial commitments in order to give greater flexibility—. A constant theme from local government is, if only they could be given greater flexibility in some of the grants that they're offered. Even to the extent that you could bundle them all together in a global grant and allow them greater flexibility over time to deliver the same commitments, in terms of the national policy goals, but allow local government to flex a little bit while they're under the financial pressure that they are facing.

We have made the case that we believe that the Welsh Government itself needs to look at using the income tax powers that it has available to it. We realise this isn't a cost-free or a pain-free option; it has its own difficulties. But we are in a time of crisis, and we campaigned for those income tax powers for a reason, didn't we, so that we could avail ourselves of them at times precisely like these. And it strikes me, when we're talking about council tax, for example, it is certainly the case that the income tax powers, even given the constraints that we're under—we're not allowed to create new bands and change the thresholds—even then they are much more progressive than the council tax, which is the most regressive tax of all. We're obviously working together through the co-operation agreement to reform council tax, in order to make it fairer and to replace it possibly with a much fairer system of taxation overall, but, while we're here, isn't there an argument that rather than using council tax as one of the main mechanisms whereby new additional revenue is going to be raised in Wales, we should actually be looking at a progressive use of the income tax power?

Business rates: obviously huge pressure as well on small and medium-sized enterprises right throughout Wales, and it's absolutely the right thing to do, to provide additional support there. I just raise the question that the Wales Governance Centre has raised, which is: is this the only way or the best way that that help could be provided? Could it be provided in a more flexible, targeted way, rather than simply using a business rate subsidy?

In terms of your draft budget for next year, it would be very useful, going back to the theme of First Minister's questions today, if you could let us know what the assumption is that you've made in terms of public sector pay. The UK Government has made an assumption of 3 per cent, I believe, for the next financial year. What is the Welsh Government's assumption in terms of public sector pay? Because if it is as low as that, that will lead to a situation where we will almost inevitably be facing disputes next year again because it'll be below the projected inflation level.

I notice the additional money for public transport, which is very welcome. I'm wondering if you are able to share with us at this stage—and apologies if I've missed this already—what is the decision in terms of rail fare increases next year and whether part of that additional money is going to be used in order to limit the increase in rail fare below the current level of CPI, which is I think what it would normally rise by. 

In the context of the co-operation agreement, we're glad to see that the commitments have been protected as part of that. We look forward now, between the draft budget and the final budget, as set out in the co-operation agreement, to bringing wider influence to bear on the Welsh budget, and we will seek to be continuing the conversation in relation to the many themes that I've raised in my speech this afternoon.