Government toasts NHS vow but seeks clarity on funding

THE Welsh Government last night welcomed Chancellor Rishi Sunak’s commitment that the NHS will get all it needs in the fight against coronavirus and other measures to support businesses and individuals, but called for clarity on funding.

Finance Minister Rebecca Evans said: “Further clarity is still needed on how these measures will be funded in full.

“We are in ongoing discussions with the UK Government to ensure Wales gets the funding it needs to deal with the impact, especially in the context of the pressures our demographic make-up could present.

“Following the UK Government’s oneyear Spending Round in September last year, today’s Budget provides additional funding for Wales of £122m revenue, £239m capital and £3m Financial Transactions capital in 2020-21. On capital, this does not take into account the £100m capital cut the UK Government made to our budget at the end of the financial year.

“The result is that the amount of additional capital available to invest in infrastructure here in Wales in 2020-21 is reduced to £140m.

“While I welcome these increases in funding, per head of the population our revenue budget in 2020-21 will still be down by nearly 4% or £200 per person, in real terms on a like-for-like basis since 2010-11.

“If our budget had grown in line with GDP since 2010-11 it would be £3.5bn higher and if it had grown in line with the long-run growth in public spending it would be £6bn higher.

“I have repeatedly called for the UK Government to take decisive action to end austerity. We welcome the additions to our Budget in 2020-21, but remain concerned about the longer-term trajectory over this Parliament term. Today’s Budget implies continued spending constraints for public services.

“The Welsh Government’s budget is dependent on the broader outlook for the economy. The Office for Budget Responsibility paints a gloomy picture, even before taking account of coronavirus.”