£1.1bn extra for Wales in Budget, finance minister confirms
FINANCE Minister Rebecca Evans has confirmed a £1.1bn uplift in the Welsh Government’s budget for 2021-22.
The sum includes money that arrived late in the current financial year from the UK Government to deal with the pandemic.
The final budget includes an extra £224m in capital spending for housing, schools and other infrastructure, and £630m for the NHS and councils.
Meanwhile, £200m is being set aside to support businesses.
Welsh Conservative finance spokesman Mark Isherwood said: “The pandemic has devastated the Welsh economy and people and businesses are crying out for more support from Labour ministers so we can support families and save Welsh jobs, but those cries have been sadly ignored.
“After over two decades in power and numerous budgets, successive Labour governments in Cardiff Bay have failed to deliver for hardworking people, and sadly there’s little reason to believe that this budget will be any different – it will only take us back to the same old normal under Labour.”
Plaid Cymru economy spokeswoman Helen Mary Jones said there were “large gaps” in the budget.
“By refusing to extend the eligibility criteria for free school meals and to freeze council tax, Labour is failing to protect the most vulnerable from the impact of the pandemic.”
She added: “£200m is but a drop in the ocean for businesses who are, like the hospitality sector, on their knees and kept awake at night fearing closure and redundancies.”
Ms Evans said: “We have taken different decisions to the ones they’ve taken across the border. When you look at our contacttracing system, for example, it’s been delivered locally by the NHS and by local authorities, and in doing so we’ve been able to secure really good value for money and provide an excellent service.
“Over the border people will be aware there have been concerns raised about cronyism and about waste. But here in Wales we’ve taken different decisions and as a result we have been able to have additional funding which we are investing in the recovery. It shows what can be done when you respect the fact that this is taxpayers’ money.”
Ms Evans said the Welsh Government was waiting to hear whether further business support funding would be made available by the UK Government.
CBI Wales director Ian Price said: “The Welsh Government is doing the right thing by putting Covid support and economic recovery at the centre of the budget. Their continued engagement with business and transparent decision-making throughout the pandemic have done much to bolster confidence in challenging times.
“While investment in longterm priorities like infrastructure will help to put the local economy on the path to growth, consumption and government spending alone can’t deliver the sustainable recovery we need.
“To achieve that, we need business firing on all cylinders and doing what it does best: investing, innovating and creating jobs.
“Covid support from the UK and Welsh governments has saved countless jobs and businesses across Wales, particularly in some of the hardest-hit sectors. Avoiding a business rates cliffedge in April would doubtless help many hospitality, retail and tourism firms – plus those in vital supply chains – to weather the months ahead.
“With jobs and livelihoods still in the balance, all eyes will be on the budget for measures cementing short-term support, incentivising investment and setting out a path to sustainable growth over the longer term.”
Stuart Ropke, chief executive at Community Housing Cymru, said: “In a year when the importance of home has been highlighted more than ever, we are delighted to see record-breaking levels of investment for housing confirmed in today’s Welsh budget. The additional £50m allocation for Social Housing Grant takes the total investment to £250m, nearly four times the amount distributed during the 2016 budget, and highlights the commitment the current Welsh Government has made to building good-quality affordable homes.
“The £50m investment for Optimised Retrofit is welcome news for housing associations that are already embarking on innovative approaches to decarbonisation, and a further positive step to supporting housing associations to undertake their decarbonisation ambitions.
“We are also pleased to see confirmation of a £40m increase for the Housing Support Grant. This funding will allow housing associations and support providers to continue providing essential services to tenants and support people out of homelessness.”