Clash over ‘smoke and mirrors’ Budget
THE release of further details of next year’s Welsh Government Budget has prompted a major clash between Labour and the Conservative opposition.
While the Government claimed the Budget would provide as much protection as possible against continuing austerity from Westminster, Welsh Tories accused Labour ministers of delivering a “smoke-and-mirrors” Budget breakdown that fails to deliver for the people of Wales.
The Budget document said: “Our long-term aim is to build a Wales which is prosperous and secure; healthy and active; ambitious and learning and united and connected.
“Prosperity for All [the Welsh Government’s economic action plan] identifies five priority areas, to which a sixth has been added, which we believe will make the biggest contribution to long-term prosperity and wellbeing.
“These reflect the times in people’s lives when they may be most in need of support and when the right sort of help or intervention can have a dramatic effect on their life course, and the need to maintain a healthy and sustainable environment in which these lives are lived.
“These are areas where evidence suggests early intervention and integrated services can have a significant impact.
“The six areas are early years; housing; social care; better mental health; skills and employability; and decarbonisation.
“Our detailed proposals are set against our long-term aims for Wales and our six priority areas.”
On health, the Budget document said: “The NHS in Wales, which celebrated its 70th anniversary this year, will continue to be this Government’s priority – feedback from last year’s participatory budgeting sessions identified the NHS as a priority for investment.
“Core NHS funding, with a total investment of £6.866bn in 2019-20,
represents the largest single budget, and contains our core funding for Welsh health boards and NHS trusts. The funding supports primary care services, including services provided by independent GPs, dentists and community pharmacists; community-based services, including community nursing; mental health services and hospital-based and specialist care.
“It is used to commission services from NHS providers in other UK nations and from independent healthcare providers, as appropriate.
“This budget line includes an additional £220m investment, which was confirmed in the 2018-19 Budget to meet the ‘Nuffield gap’ – the annual amount identified by the Nuffield Trust, which is needed to meet rising costs in the NHS and rising demand, largely associated with an ageing population – and a further investment of £94.6m for the Agenda for Change pay deal.
“This provides an increase in core NHS funding of £315m in 2019-20 compared to 2018-19, which will be used to meet the costs of pay awards for our highly valued NHS staff, increasing our investment in primary care and meeting other cost growth and service priorities.”
Revenue allocations for health boards and NHS trusts will be confirmed in December to support the preparation of their integrated medium-term plans for 2019-20 and beyond.
In terms of the education budget, the Welsh Government said it was investing £68m more in 2019-20 than it had forecast this time last year, when it published initial plans for 2019-20.
The document said: “Band A of the 21st Century Schools and Education Programme will see an investment of more than £1.4bn in school and college buildings between 2014 and 2019. A second wave of investment in band B will begin in April 2019 and will result in a further £2.3bn invested in modernising Wales’ education infrastructure through both capital and revenue funding.
“Band B will reduce the number of poor-condition schools and colleges in Wales, provide enough places to deliver Welsh- and English-medium education and ensure the effective and efficient use of the educational estate.”
On cuts to local government funding – which council leaders have warned will soon bite into core services – the document states: “Local government is at the forefront of delivering public services, responding to local needs and helping to provide a fully co-ordinated response alongside wider public services.
“In the outline draft Budget we highlighted our approach to protect frontline services and outlined additional allocations, such as investments in social care and capital allocations to enhance the transport network.
“We recognise the pressures local authorities are facing and will continue to do all that we can to shield them from the worst effects of austerity.
“Following the UK Autumn Budget on October 29, local government services are a top priority for additional funding in the event of additional resources being made available to the Welsh Government.”
On international trade after Brexit, the document states: “We aim to enhance Wales’ profile, reputation and influence and develop and maintain relationships around the world to help promote the nation, support business growth and attract visitors.
“Our international offices and trade advisers work closely with Welsh businesses to help access new markets in North America, the Middle East, the Far East and elsewhere.
“The UK’s decision to leave the EU in March 2019 marks a fundamental shift in the international environment. We are taking a strategic approach to the expansion of our