Shadow Minister for Finance Mark Isherwood MS has this afternoon expressed concern over the Welsh Government’s draft budget warning that it “does not enable Wales to build back better and recover from the COVID-19 pandemic.”
Speaking in the Welsh Parliament Debate on the Welsh Government’s 2021-22 Draft Budget, Mr Isherwood emphasised the need for the Welsh Government to work with the UK Government to accelerate recovery in every corner of Wales, but said the Welsh Government’s Draft Budget fails to provide the much needed financial revolution required to deliver this.
He said:
“The term “Build Back Better” recognises the need for a growth strategy in the wake of Coronavirus which delivers jobs, skills and infrastructure in every corner of Wales, and tackles the great unresolved challenges of the last three decades – including 22 years of devolved Labour Welsh Government.
“The pandemic has shone a spotlight on the failings of successive Labour Welsh Governments in managing our vital public services. In the year before the pandemic, NHS waiting times doubled in Wales – and Wales has retained the highest poverty rates and lowest pay of all the UK nations throughout devolution since 1999. Welsh Government spending has increased by 4.2% to £22.3 billion, 83% provided by the UK Government. Despite Welsh Government claims to the contrary, this month’s “Wales Fiscal Analysis” by Cardiff University identifies £655 million of Covid-19 funding which the Welsh Government is yet to commit, rising to £760 Million including the pre-existing unallocated spending in its final budget plans.
“As for Local Government, despite the impact of COVID-19 Local Authorities will receive a smaller increase in their settlement than this financial year. North Wales Councils are again receiving a lower average increase than South Wales, and this Labour Government is once again refusing a funding floor to protect Councils like Wrexham and Ceredigion, expected to cope with increases of just 2.3% and 1.96% respectively.
“The third sector and charities in Wales, at the forefront of Wales’ response to the pandemic, saving Millions for the Public Sector, have experienced a dramatic decline in income supporting vital services. As The WCVA response to the Welsh Government’s Draft Budget proposals states: “The voluntary sector continues to require greater resource to respond to increasing demand on its services”.
“Responding to this Draft Budget, The Federation of Small Businesses Wales identified uncertainty about where funding support for business would come from, described the rollout of business support packages as “patchy” and expressed concern that this draft Budget does not provide enough support for self-employed people.
“Welsh Conservatives have called on the Welsh Labour-led Government to implement a recovery plan for Wales.
“It is therefore deeply concerning that this Draft Budget fails to provide the much needed financial revolution required to deliver this.”