Welsh Finance Minister, Rebecca Evans, faced scrutiny from members of the Senedd regarding the proposed cuts in public service spending, following the release of the Welsh Government’s 2024/25 spending plans. During a session with the Senedd’s finance committee, Evans addressed inquiries about the winners and losers in the proposed budget.
Highlighting a reduction of £1.3 billion in the budget compared to the UK Government’s 2021 spending review, Evans emphasized the prioritization of the NHS and core public services. She disclosed an additional allocation of £450 million to the NHS, though cautioned that this would not fully alleviate existing pressures.
Concerns were also raised about the protection of the basic payment scheme for farmers, despite significant cuts to the rural affairs portfolio. Difficult choices led to the release of £40 million from the rural investment scheme and funding related to Welsh food and drink promotion.
Inquiries were made regarding the prioritization of the basic payment scheme over issues affecting disadvantaged individuals. However, Evans reiterated that safeguarding frontline public services and addressing the cost of living were top priorities for the Welsh Government.
The Senedd also sought information on the HS2 railway project and its implications for Wales. Evans expressed apprehension over the lack of consequential funding from the UK Government for the project.
Further discussions centered on the increase in spending on public services by the UK Government, particularly in health, social care, and schools. Concerns were raised about funding for expanding the size of the Welsh Parliament, to which Evans referred to as a ‘red herring’ due to the minimal budget allocation for the endeavor.
The Welsh NHS budget, projected to rise by at least four percent, was also discussed. Evans noted the difference from the increase of less than one percent in the NHS budget in England, emphasizing the challenging decisions that health boards in Wales will continue to face despite reprioritizing spending within the health portfolio.
The Welsh Government’s commitment to an uplift in local government funding, housing support grants, and discretionary assistance funds was recognized. Nevertheless, challenges in meeting certain election manifesto commitments, such as paying social care workers the real living wage and implementing a vacant land tax, were acknowledged due to delays in necessary powers from Westminster.
Concerns were raised about potential tax discrepancies for small businesses in comparison to England, to which Evans explained that the relief was initially intended as a short-term response to the pandemic. She emphasized the significant relief provided to businesses through exemptions from rates.
Regarding Brexit, Evans expressed concerns over the loss of EU structural and rural funds amounting to £1.1 billion, stating that it would be impossible to fill that gap.
The draft budget is scheduled for a Senedd debate on January 9, with a vote set for early March.
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