Mark Drakeford Responds To The UK Government’s Spring Budget

Finance Secretary Mark Drakeford has responded to the UK Government’s Spring Budget. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

The Spring Budget included £149m of additional revenue funding between 2017-18 and 2019-20 and an extra £52m of capital funding for Wales between 2017-18 and 2020-21. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

Finance Secretary Mark Drakeford: ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Ahead of the Budget, I wrote to the Chief Secretary to the Treasury to outline my concerns about the UK Government’s intention to press ahead with £3.5bn cuts to public spending in 2019-20. We still have no clarity about these looming cuts, which could result in our Budget being reduced by £175m. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The UK Government’s efficiency review will not report until the autumn. I am not prepared to wait until then to find out the impact of more cuts to our Budget. I am seeking urgent assurances from the UK Government that we will discuss early findings well before the autumn. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“In these uncertain times, we have been clear about the need to end austerity and invest in our valued public services and the economy. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Additional revenue funding is always needed against the backdrop of continued cuts to our Budget as a result of the UK Government’s pursuit of the damaging policy of austerity. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Since 2010, our Budget has been cut by 8% in real terms. Today’s Spring Budget was yet another missed opportunity to end austerity. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“Despite the ongoing cuts to our funding, we have prioritised funding for social care in Wales and spending health and social care is 6% higher in Wales than in England. I’m pleased the Chancellor has followed the Welsh Government’s lead and recognised the importance of social care to the health service. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“In Wales, we have also acted to support those small businesses which have been disproportionately affected by the independent Valuation Office Agency’s revaluation. We have put in place £20m of targeted support for 2017-18, on top of our Small Business Rates Relief scheme. ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“The Welsh Government’s Cabinet will now decide how we maximise the additional revenue funding and the very modest increase to our capital budget to support our investment priorities.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​

“We have said for some time that the Swansea Bay Region city deal is ready to be signed – we fully recognise the importance of the deal and the positive long-term economic benefits it will bring across the region. It is disappointing the Chancellor didn’t use this Budget to bring the deal to its conclusion immediately.” ‌​‌​‌​​​‍‌​‌​​‌‌‌‍‌​‌‌​​‌​‍‌​‌‌‌​‌‌‍‌​‌‌‌‌​​