4. Debate: The Draft Budget 2023-24

Part of the debate – in the Senedd at 3:17 pm on 7 February 2023.

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Photo of Peter Fox Peter Fox Conservative 3:17, 7 February 2023

Diolch, Llywydd. I move the amendment in the name of Darren Millar. First of all, I would like to thank the Minister for her statement. I recognise the difficult financial backdrop that this year's budget has been drafted within. There are, hopefully, though, some positive signs that the current high levels of inflation will now start to ease over the course of this year. Thanks to the decisive action taken by the Prime Minister and the Chancellor, the Bank of England is now suggesting that any economic downturn will be shorter and shallower than first thought.

Some of the decisions that were taken were difficult, we know, but they were the medicine that we needed to improve the health of the UK's finances. We now need Ministers here, in this place, in Wales, to start dealing properly with the huge challenges this country is facing and stop looking for other people to blame. Because challenges can be overcome, and if we're going to create the Wales that we all want to see, then the Welsh Government needs to step up and sort things out here. 

Llywydd, we know what the immediate issues facing our communities are. We debate these here week after week in this Chamber. This budget has to deal with the immediate pressures facing society, so we have to prioritise our actions and make sure that we deliver on these. I know that the Minister understands this, and there are areas in the draft budget that I generally do welcome, such as the additional money for mental health services, the additional non-domestic rates relief for businesses in the retail, leisure and hospitality sectors, and also the increase in the local government settlement.

But, despite this, there are areas of the draft budget where the Welsh Government are letting so many people down, as we've just heard from the Chair of the Finance Committee, such as the real-terms cut in the education budget. Then there's the real-terms cut in the health and social care budgets. And let's not forget that the only Government in Britain to actually cut the NHS budget was a Labour Government here in Wales in 2012. And we know that even before the pandemic, the Labour Government were only spending around £1.05 of the £1.20 that they received from UK Government for every £1.00 spent in England, in both the education and the health services here. The people of Wales need to know where that additional money has been spent.

There are well-meaning announcements, such as the real living wage for social care workers and teachers' pay uplift, but we know that councils will be expected to fund the vast majority of these increases from the revenue support grant, rather than the Welsh Government stepping in and providing direct funding to enable these, meaning much-needed resources will be directed away from front-line services. Again, this an issue that has been raised by councils on numerous occasions and where they will be told, 'It's in your settlement', which just passes the buck onto local authorities.

And then there's the usual funding of pet projects, such as: the constitutional commission—a one-way talking shop; millions being spent on unnecessary tinkering around the elections policy and more politicians, which take money from public services and focus it here in Cardiff Bay; and not to mention things like universal basic income pilots and blanket 20 mph default speed restrictions. For the Government that has called this very budget 'A budget for hard times', it doesn't seem as if Ministers are solely focused on these hard times, does it?

To put it simply, Llywydd, we need a plan that focuses on the immediate problems faced by the people and businesses of Wales, and this is where the Welsh Conservatives believe that the draft budget can improve. We know, as a result of the autumn 2022 budget, the Welsh Government will receive an additional £1.2 billion over the next two years. Let's spend that money on delivering on people's priorities instead of what I've mentioned earlier.

In its draft budget, the Welsh Government is looking to reprioritise some nearly £90 million from within existing departmental plans to, and I quote, refocus

'limited resources towards the areas of greatest need.'

In a budget of almost £23 billion, we believe that this reprioritisation work could have gone further to enable existing funding streams to do more. As a group, we have identified further funding streams worth over £100 million over the next two years that could be refocused in the immediate term, together with adjustments to some existing budgets that would be cost neutral, but help significantly towards helping people with the cost-of-living challenges, supporting businesses to create jobs and prosperity, and clearing the backlogs in our health service. Reprioritising some current funding streams is needed until the pressures we face begin to ease and services are on a more stable footing once again.

However, it's difficult to find out where all of the money here is spent. I’ve certainly found it difficult to get under the bonnet of this budget. In my previous role within the council, I could understand every element of the budget, but it's only Ministers here who know where the pockets of potential additional funding lie. But let's be honest, how much of the £350 million in central administration funding allocated in the draft budget is spent on actually delivering on people's priorities? How does spending £6 million on elections policy, £2 million on a constitutional commission, or over £8 million on international relations—