4. Debate: The Final Budget 2023-24

Part of the debate – in the Senedd at 3:10 pm on 7 March 2023.

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Photo of Rebecca Evans Rebecca Evans Labour 3:10, 7 March 2023

Despite this context, I remain proud that our approach remains grounded in ensuring that every pound invested makes the greatest positive impact. We have delivered a budget that recognises the need to balance the short-term impacts of the cost-of-living crisis, whilst also doing all that we can to drive forward the longer term change and deliver on our programme for government ambitions. This is a budget that has protected front-line public services and our ambitions for the future, continued to provide help to those most affected by the cost-of-living crisis and supported our economy through recessionary times. Through taking fundamental action to reprioritise our budgets, alongside the limited funding from the UK Government, we have allocated £165 million for the NHS, with £70 million to deliver the real living wage for social care; £227 million for local government, ensuring that no local authority will receive less than a 6.5 per cent increase in core funding; a direct investment of £319 million for non-domestic rates relief; and, in response to the cost-of-living crisis, investment in our basic income pilot and the discretionary assistance fund.

Building on the actions within our draft budget, I was pleased to announce an additional £164 million of financial transactions capital funding, of £84 million in 2023-24 and £80 million in 2024-25, within this final budget. This includes £63 million to help to extend Help to Buy—Wales until March 2025, supporting people to realise their dream of home ownership. Building on the package of measures within the co-operation agreement, I was pleased to agree, with Plaid Cymru, substantive action to improve the availability and affordability of housing in local communities for those on local incomes, as well as in response to the impact of the cost-of-living crisis. This includes £40 million to assist those in mortgage difficulty at an early stage to enable them to stay in their homes, as well as £59 million supporting the delivery of new low-carbon social housing. My colleague the climate change Minister will undertake further work with Plaid Cymru to further develop these proposals. Combined, these allocations will continue to support the delivery of our priorities contained within our 10-year Wales infrastructure investment strategy, building on our existing £1.8 billion portfolio of financial transactions capital investments. 

Turning to scrutiny, I want to thank all Members for their constructive engagement throughout our scrutiny process. My Cabinet colleagues and I will be pleased to agree with the vast majority of our respective committees' recommendations. As we have collectively recognised, the context in which we are delivering this budget has meant that we have not been able to respond to all of the areas that have been identified. 

Looking ahead to the UK Government's spring statement on 15 March, we recognise that the key levers to respond to the numerous challenges that we face, such as powers over the tax and welfare systems, are reserved powers and lie with the UK Government to utilise. I will, of course, continue to call on the UK Government to do more on the impacts of inflation on Welsh budgets, the pressure on the NHS and the challenges of social care, ensuring that there is fair funding and investment in Wales. In particular, on the issue of pay, we maintain our calls on the UK Government to provide funding to enable us to ensure all our public sector workers are fairly rewarded for the important work that they do.

We have demonstrated that, in Wales, unlike in Westminster, we are prepared to work in social partnership with our trade union partners and do all that we can within our existing settlement. The health service in Wales is under extreme pressure, and the UK Government must use its spring budget to invest in the NHS to ensure that services can respond to the significant pressures following the COVID pandemic and the cost-of-living crisis, and deliver wider reform.

I have written to the Chancellor, highlighting the wealth of opportunity in Wales for UK Government investment to support enterprise and productivity, including rail, renewable energy and research and development. It's vital that the UK Government invests in green energy and decarbonisation to improve our energy security for the future and to contribute to meeting our net-zero targets. I also continue to press the UK Government to review its categorisation of the £100 billion investment in HS2 as an England-and-Wales project. This decision severely restricts our ability to invest in rail in Wales, and our position is one that, I believe, has strong cross-party support, both in the Senedd and the UK Parliament.

In closing, despite the challenges we face, I am confident that this budget continues to maximise our available funding. It's a budget that maintains our commitment to prioritise the most vulnerable and public services, whilst continuing to create a fairer, stronger, greener Wales for all.