North Denbighshire Community Hospital

Part of 1. Questions to the First Minister – in the Senedd at 2:08 pm on 17 January 2023.

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Photo of Mark Drakeford Mark Drakeford Labour 2:08, 17 January 2023

Well, Llywydd, the Member makes some important points, and it is exactly because of those points, that this is a community hospital where social care will be a very important part of the context within which it works, that the regional partnership board has been asked to consider the project. So, I agree with the point she made there. 

On the borrowing limit points, I would have hoped that this would be something where we might have common cause across the Chamber here. In 2016, we reached an agreement with the UK Government as to how we would take on our fiscal responsibilities. It set out the borrowing limit of the Welsh Government, the operation of the Welsh reserve. Those figures have never been updated. Our budget is 40 per cent larger in cash terms than it was in 2016, but we're managing it with the same limits that were right for 2016. If they were simply uprated in line with inflation, if their real value didn’t change, but their real value was sustained, then that would give us some additional flexibility around borrowing limits and how we manage the Welsh Government’s money in a sensible way. I think that’s all we’re suggesting. It’s what the Institute for Fiscal Studies suggested in their report on the operation of the fiscal framework. I’m quite sure that, in the very long list of things that UK Government has to think about, this is probably not near the top of it, but it’s just a sensible thing that they could do that would make a difference in sensible use of public money.