FINANCE MINISTER Rebecca Evans unveiled the Welsh Government’s draft Budget with plans to invest more than £8bn for the Welsh NHS alongside ambitious projects to help combat climate change.
In the first Budget following the declaration of a climate emergency in Wales, there is significant new funding for low carbon transport and housing and support to restore Wales’ natural environment. This budget also protects major ongoing funding for renewable energy, the development of zero-carbon technologies and access to nature.
The 2020-21 draft Budget will see the Welsh NHS receive an inflation-busting increase of £342m next year, alongside an almost £200m boost for local government. Core funding for local authorities will grow to almost £4.5bn, boosting resources for schools, social care and other local services.
There will also be additional funding to tackle poverty, including extra support for disadvantaged pupils, and investment for town centre regeneration in a budget that delivers real-term increases for all Welsh Government departments.
This Budget also confirms that Welsh rates of income tax will be unchanged for next year, maintaining the pledge not to raise tax rates this Assembly term. It also focuses on longer-term, preventative measures to promote the wellbeing of future generations.
The UK government’s September 2019 spending round provided funding allocations for one year only. Following this announcement, like-for-like funding for Wales next year will be £300m lower compared with 2010-11.
Finance Minister Rebecca Evans said: “This draft Budget delivers on our promises to the people of Wales and invests for the future of our planet.
“Despite a decade of austerity, we have consistently prioritised our NHS. Our plans will confirm a £37bn investment in the Welsh NHS since 2016.
“As we take on the climate emergency, I am protecting our existing investment and delivering a new £140m package with support for low carbon transport and a National Forest for Wales.
“Funding increases for other vital public services, such as schools and local government have also been secured in this year’s Budget. Ministers have also worked across government to focus on long-term, preventative measures such as mental health investment in line with the Well-being of Future Generations Act.
“Even though our like for like funding remains below 2010 levels, this Budget strives for a greener, equal and prosperous Wales.”
Responding for the Conservatives, Darren Millar AM tore into the Draft Budget 2020-21.
Speaking in the Senedd on Tuesday (Jan 7), he said it was “…an opportunity the Finance Minister has missed…”, and full of policies that are “…tried, tested, and failed”.
From the M4 Relief Road, to Cardiff Airport, and from health and education to the economy, Mr Millar said that the Finance Minister had a golden opportunity to invest in the people’s priorities, drive a more dynamic economy, and build on the opportunities for Wales outside the European Union.
“But,” he began, “where there was the opportunity to be imaginative you’ve opted for the mundane. Where there was the opportunity to rise to the challenge and be ambitious for our economy, you sat back. Where there was the opportunity to be radical you’ve stuck to the tried, tested and failed.”
Mr Millar continued his passionate critique of the Draft Budget, calling the lack of investment in Welsh roads – including the M4 Relief Road rejected by the Welsh Labour Government following a £144-million investigation – “… one of the biggest barriers to growth and investment in South Wales” and calling for investment in the A55 and A40.
“But ironically, when we look at where the Welsh Government is investing in transport – it’s actually in the most polluting form – air travel.
“This year, we’ve seen a further £4.8 million for the state-owned Cardiff Airport, on top of a loan above £21m announced in October.”
Just last week, pre-tax losses at the airport trebled from the previous year to some £18.5m, far more than the modest £1m loss during the airport’s last full year in private ownership in 2012.
Specifically on the environment, Mr Millar – who represents Clywd West – said: “This was proclaimed as a ‘green’ budget, but the reality is that the Welsh Government’s response to its climate change emergency declaration has been slow, vague and uncosted. We need to see more investment in cleaner technology in line with the drive to phase out diesel and petrol vehicles.
“Many Welsh counties have the poorest network of electric vehicle charging stations in Britain. Why isn’t this budget doing more to invest in these? It’s a missed opportunity to invest in clean technology and encourage consumers to make greener choices.”
Speaking later, Mr Millar said: “There are elements of this Draft Budget I have welcomed, as have my Welsh Conservative colleagues, but overall its one failed opportunity after another from a failing Welsh Labour Government.”
Plaid Cymru shadow minister for the economy and finance Rhun ap Iorwerth AM said: “This is a budget that delivers only in its lack of ambition.
“Twenty years of Labour rule in Wales has shown us that more money for our NHS doesn’t in itself mean better services. What we need to see from this Labour government is a strategic plan on how this extra funding will be spent on preventative measures instead of the continued mismanagement of our NHS and health boards that are still in special measures. Meanwhile, local government is still not being given the level of funding it so desperately needs to deliver crucial front line public services.
“The £140m package for low carbon transport is not nearly ambitious enough and such a small package in the face of such a colossal global climate crisis shows that this Labour government isn’t taking the issue seriously enough.”
Rhun ap Iorwerth added: “To compound the problem of Labour mismanagement, the truth is, that the Welsh Government’s budget will be tied to the priorities of whatever government is sitting in Westminster, and we know that UK Governments – of whichever colour – care little about addressing Wales’ needs.”
Next stage of the rollout by Open Reach
Local member of the Welsh Parliament Lee Waters has welcomed news that Open Reach is bringing super-fast fiber broadband to new parts of the Llanelli constituency.
The next stage of the rollout by Open Reach will bring full fibre to the premises broadband to thousands of homes over the course of the next few years. Provision of super-fast broadband has been a priority of Welsh Government, and the new roll out will increase provision across Wales and Carmarthenshire. The provision of broadband is the responsibility of the Westminster Government, but the Welsh Labour Government have stepped in to fill gaps in the network in Wales that commercial providers have left behind.
Lee Waters MS said:
“I’m really pleased that super-fast fibre broadband is being rolled out to more homes in the area.
“Burry Port, Llanedi, Cross Hands, Hendy, Llannon, Pembrey and Tumble will all start having full fibre installed later this year. This stage of the roll-out is being fully funded by OpenReach.
“This is on top of the investment made by the Welsh Government to get 95% of households connected to fast broadband.
AM seeks assurances for Llanelli car industry
Mid and West AM Helen Mary Jones has asked for assurances in the Senedd from the Welsh Government about the future of automotive industry in Llanelli.
Car production in the UK fell to its lowest level in almost a decade last week. It was revealed output fell 14 per cent to 1.3 million, according to figures from the Society of Motor Manufacturers and Traders.
Production shutdowns in anticipation of Brexit is one of the factors impacting on the decrease in output.
Shadow Minister for Economy, Tackling poverty and Transport for Plaid Cymru, Helen Mary Jones AM said:
“It is just over a year since the Schaeffler automotive factory in Llanelli announced that it would be closing with the loss of 220 jobs. These were good-quality jobs, jobs that could sustain families productively. There are real concerns in the sector about the access to markets. I asked the Brexit Minister about further discussions the Welsh Government could have with the UK Government to try and ensure that we do have a voice around the table when negotiations are being made.
“This is especially important with regard to both the new trade deal that we’ll hopefully have with the European Union and any other free trade deals, to ensure that there are no unintended consequences. For example, allowing access to markets for vehicles and vehicle parts from outside Wales that might have a negative effect on the supply chain that companies have put a lot of effort into building up over many years.”
The automotive sector in Wales is comprised of about 150 firms, mainly component manufacturers, employing over 18,000 workers adding £3 billion to the Welsh economy.
Brexit Minister Jeremy Miles AM said:
“We are in regular dialogue with companies in the sector, with the Welsh Automotive Forum, and with national sector bodies regarding the potential impact of Brexit. Having an ongoing and frictionless trading relationship with the EU is very important for the automotive sector, and indeed for other sectors.”
Opinon: Matthew Paul
Well, you did it, you bastards. You won. At 11pm today, the UK will have left the European Union.
This hasn’t occasioned the cataclysm that –until 13 th December– the turbulent Brexit process might have led us to expect. The weeks since Boris Johnson’s thumping majority made Brexit an inevitability have been an anticlimax on the scale of The Godfather Part III.
Three and a half years of high political drama have ended in six weeks of Brexit bathos.
On Wednesday, our representatives in the European Parliament packed up their desks, emptied their lockers and –heavy of heart and misty of eye– signed off their final, Brobdingnagian claims for expenses. Pro-EU MEPs linked arms, waved EU flags and sang a maudlin rendition of Auld Lang Syne. In return, EU president Ursula von der Leyen told the UK she loved us and always will.
The love-in lasted about three minutes, until Nigel Farage, flanked by his gang of gruesomes, stood up to crow. In the graceless and disruptive manner he has diligently maintained over twenty years in the Parliament, Nigel rubbed fellow MEPs’ noses in the Brexit Party’s mess until the mike was switched off. Then his cohort started waving little Union flags so
enthusiastically you might have assumed Prince Harry had come back. Divorced.
The European Union (Withdrawal Agreement) Act 2020 passed through Parliament without a murmur of disapproval, a court case, any perversions of Parliamentary procedure or even a self-indulgent ORRRRDDEEEEEERRRRR from the excellent and austere new Speaker,
Lindsay Hoyle. At sundown, EU flags will be taken down from public buildings around the UK and furled forever, in a melancholy echo of the last time Britain’s influence in the world seriously declined. All except in that bastion of Brexit resistance, the Scottish Parliament, where Nicola Sturgeon –under what legal authority it is unclear– has decreed that the
twelve stars will stay put. Mark Francois no doubt imagines himself jogging up to Edinburgh with a crack TA troop to tear it down from Holyrood in a reverse Iwo Jima.
South of Hadrian’s Wall, the mood amongst Remainers is one of defeated realism. Re- joining on the terms available to accession countries is not a serious option; the EU has gone and it ain’t coming back. Even Plaid Cymru –after getting utterly pasted in December’s election, largely because their ur-Remainy stance went down like a cup of cold sick in the valleys– aren’t clinging to dreams of readmission to the continental club.
Now, having got your damned Brexit, you now have to work out what to do with the thing.
What was the point of leaving the EU? There are some fairly compelling reasons to be out of Europe if you incline to the Corbynite hard left, because the Commission always had unhelpful things to say about confiscatory taxation and state aid for lame duck nationalised industries. Get Brussels out of the way and you are only a few strands of barbed wire and an
empty supermarket away from the usual sort of socialist paradise.
On the right, the intellectual arguments of economically liberal Brexiters have always had force. There can and will be advantages to an economy where barriers to free trade are removed, where business is freer to hire and fire, and where innovation in our tech, pharmaceutical and agri-business sectors is not restrained by regulation which adheres too closely to the precautionary principle. Intellectual arguments are all very well, but the difficulty is that this hasn’t typically been the kind of economy or society around which a political consensus has settled.
Before the General Election, in a political landscape where a powerless Prime Minister was bossed around by a hopelessly divided Parliament, it was hard to expect that much could be achieved by leaving the European Union. Now, we have a PM more powerful than any British politician since Tony Blair in 1997; with just as much of a mandate to change the country.
To benefit economically from Brexit, he will have to be prepared to do things that are very, very unpopular.
Round these parts, things that damage the livelihoods of farming communities are likely to be pretty unpopular. But this week we saw Boris inviting a stampede of half-starved, flystruck Ugandan cows into the UK meat market. “I have just told President Museveni of Uganda” he said –following a conversation quite different from the sort of Ugandan
discussions with which our Prime Minister is usually associated– “that his beef cattle will have an honoured place on the tables of post-Brexit Britain.” What is good news for herdsmen around Kampala won’t be so well-received in Knighton, Keswick or Kirkaldy.
Boris will also have to decide whether we are a country closer to Europe or America. If we choose the latter, and unless the US Democratic Party seriously ups its game, we will be saddled with another four years of having The Donald as our psychopathic cell mate in a prison we built for ourselves. It’s in our interest to keep him happy, but this week’s decision to allow Huawei –the tech equivalent of coronavirus– to supply hardware for Britain’s 5g mobile networks was like carelessly reaching for the remote control in the middle of one of Trump’s favourite TV shows. There are worrying noises coming from the top bunk, as of someone sharpening a shiv to use on us in the first round of post-Brexit trade talks.
So, residents of workless Labour-voting constituencies in South Wales; farmers who didn’t like filling in the subsidy forms; anyone who hates being bossed around by foreigners but doesn’t count Donald Trump amongst their number. You voted for it. You got it. It’s here.
Enjoy it; it’s going to be a wild ride.