Part of the debate – in the Senedd at 5:33 pm on 14 March 2023.
Finally, the committee was pleased to hear about the positive meetings held between the Minister and the latest UK Chief Secretary to the Treasury. Fiscal devolution works most effectively when harmonious inter-governmental relations exist, and we hope that the nature and spirit of these initial meetings will continue. As Members will know, this committee has time and again supported the Minister in her efforts with the Treasury to increase the size of the Wales reserve and borrowing limits, so that they are at least in line with inflation. We strongly agree with the Minister that the current rules are inherently unfair. It seems to us that local authorities have more discretion than the Welsh Government to carry over funding from one year to the next, and this is surely not right. The committee therefore reiterates its calls for the UK Government to increase the Welsh Government's overall and annual limits for borrowing and reserves, and for these limits to be reviewed regularly. Thank you very much.