Homelessness, Schools, Climate Emergency, Transport for Wales and Health: Assembly policy committees have their say on £17 billion Welsh Government draft budget

Published 31/01/2020   |   Last Updated 31/01/2020

  • Welsh Government’s commitment to end homelessness not reflected in budget allocation
  • Extra funding for education must reach the front line
  • Unacceptable for Welsh Government to plead ignorance over decarbonisation impact
  • Greater transparency needed on funding and performance targets for Transport for Wales rail operator
  • Welsh Government needs to demonstrate how it will support change in integrated health and social care services
Four National Assembly committees have published reports examining how the Welsh Government intends to spend its £17 billion budget on schools, hospitals, the environment and local services.

Equality, Local Government and Communities Committee

The Committee is disappointed the Welsh Government’s commitment to ending homelessness in Wales is not backed up by the amount of money allocated to tackling the problem. In fact, under the draft budget, funding will stay the same which equates to a real term cut when taking inflation into account.

The Committee recommends that the Welsh Government increases the allocation of funding to the Housing Support Grant and the Homelessness prevention budget line  in the 2020-21 budget to ensure that the Welsh Government’s ambition on reducing homelessness to be rare, brief and unrepeated can be delivered.

Children, Young People and Education Committee

The Committee has raised again this year how vital it is to ensure that enough money is made available to fund schools in Wales. While it welcomes the increase in local authorities’ funding and the commitment given by local government to use it to prioritise school and social care funding, it remains very concerned about school funding in Wales. 
The Committee’s report calls on the Welsh Government to robustly monitor this funding and to demonstrate to the Assembly that this money is reaching our schools.

Climate Change, Environment and Rural Affairs Committee

In the light of the Welsh Government declaring a climate emergency, the Committee was expecting a transformative budget showing how investment was being prioritised to address the issue. But members concluded the budget was business as usual and that it was unacceptable for the Welsh Government to continue to plead ignorance about the cost and potential benefits of its decarbonisation policies.

From next year the Committee expects the Welsh Government to change the way it does things – the draft budget should be accompanied by detailed information about the carbon impact of the allocations in it.  

Economy, Infrastructure and Skills Committee

The Committee‘s report looks to get beyond the headline figures of the Draft Welsh Budget by looking at issues including rail funding, research and development funding and how the Welsh Government is planning to support regional economies in Wales.

The Committee calls for greater transparency on the funding for KeolisAmy, the company who operates the Wales and Borders rail franchise as TfW Rail Services, as well as their performance targets and the penalties they face for poor service. 

During the scrutiny process, Kirsty Williams AM, the Education Minister, admitted that the Welsh Government did not know how much it spent on research and development funding. The Committee has called for a review, especially as a significant amount currently comes from the EU. 

The Committee has also called for the release of research behind the Welsh Government’s new Regional Economic Frameworks and Regional Indicative Budgets which will be used to develop regional economies across Wales. 

Health, Social Care and Sport Committee

The Committee believes that this draft budget fails to show a shift towards mainstreaming prevention and service transformation. Going forward, the Welsh Government needs to demonstrate how its funding allocations will support long term sustainable change in the delivery of integrated health and social care services. The Committee expect to see a greater strategic focus on transformation and prevention in future budget rounds.

The reports follow an overview of the draft budget from the Finance Committee which raised concerns around climate change, poverty and Brexit.

Chair of the Finance Committee, Llyr Gruffydd AM, said:

“We are in unprecedented times as we approach Brexit and, risks and opportunities aside, what people are searching for most of all is clarity and certainty.

“The Welsh Government expects EU Structural funds will be replaced by the UK Government. But agriculture sits outside of this so the Committee would like assurances farming payments will continue as normal until a new funding structure is brought in. 

“Nobody should be worse off as a result of leaving the EU.”

The Welsh Government’s draft budget and the Committees’ findings will be debated during a full meeting of the National Assembly at the Senedd on Tuesday 4 February 2020.

The Assembly Commission research service has produced an interactive graphic to help explain the Welsh Government draft budget including changes on the previous year’s projections.