Part of the debate – in the Senedd at 5:21 pm on 25 January 2023.
Diolch yn fawr, Llywydd. Thank you. Can I put on record, first, my thanks to the Culture, Communications, Welsh Language, Sport, and International Relations Committee for their in-depth and considered inquiry into the impact of rising costs on culture and sport, and for bringing this debate to the Senedd this afternoon?
The impact of rising costs is particularly high across culture and sport areas within my portfolio, highlighting organisations and sectors that have been struggling to recover financially from the pandemic. And, as has been acknowledged by several contributors this afternoon, significant support was afforded to these sectors through the pandemic to ensure that they could recover post pandemic and be part of our post-pandemic recovery. However, unfortunately, we slid out of the pandemic into a cost-of-living crisis and an energy crisis that we had not anticipated. Large increases in energy prices are adding to those significant pressures on budgets, as we’ve heard. Less disposable income means people having to tighten belts and spend less on leisure and entertainment. Increased living costs are also impacting on the recruitment and retention of staff and volunteers, as people struggle to afford travel costs and childcare, or opt for better paid work. In some instances, the combined results of these challenges is reduced programmes of activities across Wales. Significant increases in supply chain costs, particularly in relation to materials and labour, are also impacting on capital projects and maintenance work.
So, turning to the committee’s report and recommendations, I’m pleased that the Welsh Government’s responded positively to the committee’s report and its recommendations, and we’re pleased to accept most of them—eight out of the 10—and on the two that we didn’t accept, I’ll expand a little bit further. So, on recommendation 6, the call for a UK-wide support package for the culture and sport sectors, as we’ve said, this is a matter wholly for the UK Government. The impact of the increased cost of living and the failure of the UK Government’s promises to replace EU funding in full has created significant challenges, and despite what Tom Giffard said, we should not be letting the UK Government off the hook on this one, and suggest that other people do the job for them. This is an area that is wholly a reserved matter and it is the responsibility of the UK Government. As a Welsh Government—