Greater clarity needed in health spending in Wales

Published 11/11/2014   |   Last Updated 23/02/2015

The Welsh Government needs to be clearer about how it intends to spend the extra funding earmarked for health in its budget, a cross-party group of Assembly Members has said.

The National Assembly’s Finance Committee says that it’s not clear whether the additional money is intended to plug the gap in health funding or to improve services.

A consequence of this additional funding being targeted at the health budget, according to committee members, is that local government and the third sector is facing cuts - sectors which often deliver preventative services.

"This year the Finance Minister said that investing in the Health Service is a priority of the Welsh Government," said Committee Chairs, Jocelyn Davies AM.

"Whilst we recognise that it is for the Welsh Government to set their priorities, the Committee has concerns around the impact of the decrease in budgets for Local Government and the third sector.

"Many of the services provided by these sectors are preventative in nature, which can lessen the need for users to access health services.

"Whilst the Committee does not dispute that the additional funding for health can be used effectively, we also have concerns around the lack of evidence showing that the additional funds will be accompanied by reform, which is clearly needed."

The Finance Committee has made 16 recommendations as part of its scrutiny of the Welsh Government budget.

Other recommendations include a call:

  • To provide a realistic estimate of the costs, benefits and timescales associated with local government mergers; and
  • For the Government to undertake a rigorous review of the current process for costing legislation and for incorporating the costs in the budget, in order to ensure that the full consequences of legislation, including costs can be identified. The committee found that there is considerable scope for improvement in how legislation is costed and how estimated costs are reflected in the budget process

Report: Scrutiny of Welsh Government Draft Budget 2015-16 (PDF, 986KB)

For further details about the work of the committee click here