Part of the debate – in the Senedd at 5:37 pm on 14 March 2023.
Thank you to the Minister for presenting this supplementary budget, and thank you to the Finance Committee for the scrutiny work that they've done, which, of course, is valuable, as usual. Of course, this is the Government's supplementary budget, so it doesn't necessarily reflect the priorities we would want to promote in all cases, but I do think that there are broader messages, which are clearly highlighted in what we have seen in this supplementary budget.
In the first instance, it reminds us of the lack of flexibility for the Welsh Government, when it comes to responding to the challenges facing us—the restrictions, as we heard from the Chair of the Finance Committee, on the level of draw-down the Government can make from the Welsh reserve, the restrictions on borrowing levels, and none of those has increased or changed to respond to the inflation that we've seen. So not only is there a lack of flexibility, but that flexibility is shrinking year on year, given the current circumstances.
Another deficit that's been highlighted, and, of course, it is highlighted on a daily basis now, is the lack of budgetary justice. We are talking about a lack of consequentials as a result of HS2. It was good to hear the list of wants that the Conservative spokesperson had; that money would pay for that and more. But I have to say, I'm not encouraged by the response of the Labour Party to this, and the failure of the leader of the UK Labour Party to commit to put right that wrong, which, of course, is in contrast with the Welsh Government's own policy. So, I am sure that the Minister would be more than happy to express her disappointment that that pledge wasn't made by the leader of her party on a UK level.
Clearly, the spring statement will happen this week in Westminster. We, as a party, have made it clear that prioritising public sector pay is something that is important to us, and I would be confident that, if there is additional funding available, it would be used mainly to that end. I want to echo the message that we heard from the Chair of the Finance Committee in terms of the recommendation in the report, I think it's recommendation 5, on providing more financial certainty and consistency to local authorities to support those escaping the disaster in Ukraine. Whatever the changes at a UK Government level, we need some assurance in our local authorities.
For me, as a former member of the Finance Committee, I've complained when some of the sponsored bodies approached us and asked for more funding, so I think, in fairness, it is worth noting that funding has been returned in the supplementary budget by the public service ombudsman and by the Senedd Commission too. Like the committee, I do expect the Audit Wales relocation, which will have costs, will bring savings over a period of time. So, just to keep the balance, I think it's important that we recognise that. Thank you.