THE WELSH GOVERNMENT and Plaid Cymru have agreed a two-year, £210m Budget agreement.
The deal includes ensuring no cuts to the Supporting People grant, £15m to improve vital north and south links on the A487 and A470, and a £40m boost for mental health funding over two years.
There is an extra £20m-a-year for higher and further education and £6m for a young farmers’ grant scheme over two years.
There is additional funding for the Welsh language; for Wales to deal with the impact of Brexit, including support for businesses and for music in schools. The agreement builds on the one struck between the Welsh Government and Plaid Cymru last year.
It also includes:
- A £7m development fund for undergraduate medical training in North Wales
- £2m to remove the tolls on the Cleddau bridge in Pembrokeshire in 2019-20
- £3m to support the design and development of a third Menai bridge crossing
- A further £2m for the secretariat and investment support for a new ‘Arfor’ economic region in west Wales
Welsh Government Finance Secretary Mark Drakeford said: “We are pleased we have been able to agree this two-year deal with Plaid Cymru, which secures the whole of our Budget.
“This agreement builds on the one reached between the Welsh Government and Plaid Cymru last year and includes a series of recurrent allocations for the Welsh language, arts, end-of-life-care, mental health, higher education and Visit Wales.
“We have also been able to agree capital funding to take forward the new integrated healthcare centre in Cardigan and the results of the feasibility studies into a national art gallery and football museum in North Wales, which were agreed as part of last year’s agreement.”
Adam Price, Plaid Cymru’s spokesperson for finance, business and the economy, said: “This is a Budget Agreement that will deliver for people and communities in all parts of Wales.
“It protects the vulnerable, invests in our young, and innovates for all our futures. This is a pan-Wales budget agreement, from the Cleddau to the Menai from Wrexham to the Rhondda, from culture to agriculture, from energy and transport to education and health – new ideas for a new Wales.”
In an effort to deflect from the idea that Labour had made concessions to Plaid Cymru, and after the announcement of the Budget agreement, Finance Secretary Mark Drakeford said in a BBC Wales interview that there was nothing in the Budget that Labour would not have delivered and that Plaid’s support was a matter of Assembly arithmetic.
And if that appeared more than a tad graceless, the brittle nature of any accord was underlined when Adam Price pointed out that Plaid had not managed to obtain everything it had wanted, including an agreement on tuition fees and public sector pay, and commented: “This is Labour’s budget and it will have to answer to the people of Wales as to why it is failing to deliver on its manifesto commitments such as lifting the pay cap and stopping the rise in tuition fees.
“Plaid Cymru secured a deal that would deliver benefits to communities in every part of Wales. Our budget deal will mean investment in the things that matter to people, including employing 80 new district nurses, £40m for improving mental health services, an additional £40m for our universities and colleges, a Brexit Preparedness Fund for businesses, a young farmers’ entrant’s scheme and a major £3m investment in a power station for our steel industry.
“But we are frustrated that the Labour government failed to implement important policy matters such as the pay cap and rising tuition fees, particularly as they were commitments made in Labour’s 2017 manifesto. Indeed, what is not included in this budget has made the void between Plaid Cymru and Labour more and more apparent and has made future co-operation between the parties more and more unlikely.
“We will be robustly scrutinising the details of this budget when they are announced, and we will hold the Labour government to account on the decisions it takes.”
The Conservative Party in Wales attacked the agreement.
Andrew RT Davies, said: “This budget deal is the latest charade in the Plaid-Labour love-affair and significantly sees both parties break a number of election promises to the people of Wales.
“Despite the well-publicised vows to the electorate only three months ago and being in government in Wales, the Labour Party has once again failed to take any action on public sector pay or tuition fees.”
All in all, the draft Budget seems to be a document with few close friends, even among those responsible for its content; while the Conservatives are yet to put forward any positive alternatives instead of criticising from the side-lines and carping at Plaid Cymru.
Margaret Thomas, UNISON Cymru Wales Secretary, said: “The Welsh Government is being creative in their budgeting in order to protect public services across Wales.
“UNISON welcomes the additional funding for the NHS in Wales, as well as the pledge to build more affordable homes.
“We are also pleased to hear plans around additional childcare. The majority of UNISON members are women, many work part-time, and we know women still fulfil most of the child care responsibilities in the home – so this will hopefully be of great benefit to them.
“We also recognise the Cabinet Secretary’s attempt to protect Welsh local government budgets and offer a more favourable settlement than in England.
“But the point must be made that this innovative budgeting will not protect our essential public services from further drastic UK government imposed cuts to the Welsh Government block grant, anticipated in their Autumn Statement.
“This budget comes at a time of unprecedented austerity. Public services should be properly invested in, and Wales deserves to be properly funded. The fact also remains that public sector workers across Wales, and the rest of the UK, have already suffered seven, long, hard years of pay restraint.”
‘Sort finances before service changes’
ONE of west Wales’ Labour Constituency Parties has called for the Health Board not to proceed with its plans for major health service change until its long-standing financial crisis has been resolved.
On Friday, May 25, Ceredigion Constituency Labour Party passed a motion calling on the Board to think again.
In the last financial year the health board overspent its £760m budget by £70m, or 9%, and the board itself describes its regular overspends as ’growing year on year’.
Ceredigion Labour Party points out that although the changes in service provision which are being proposed may provide better patient care, they cannot also be expected to deliver savings if standards of care are intended to be maintained.
Dinah Mulholland, spokesperson for CCLP, said: ”We welcome all attempts to improve local health services. But acceptable proposals must be based on sound financial projections and dependable financial commitments.
“For instance, all three of the board’s alternative proposals for the delivery of clinical services involve the building of a new major urgent and planned care hospital `between Narberth and St Clears’, to replace other hospitals that would be closed or downgraded. Yet the Welsh Government has offered no commitment to provide capital funding for this scheme.
“We are calling for a `Stop and Fix’ approach because unless the financial arrangements are stabilised we see a very real threat that at some point during the next few years progress with major changes in service provision could be overtaken and overwhelmed by a sudden financial collapse.
“And if the board is preoccupied with delivering major changes in service provision it will be paying less attention to managing its ongoing financial problems.
“We would welcome a commitment from Hywel Dda not to proceed with any major reconfiguration of clinical services until it has secured resources to remedy the chronic and ingrained underfunding of health services in mid and west Wales. This proposed reconfiguration cannot and should not be expected to solve Hywel Dda’s long-standing problem with underfunding.”
Last week (May 23) the Welsh Health Secretary announced an annual increase of £27m in Hywel Dda’s revenue funding, but CCLP describes this as “sticking plaster” as it represents only 39% of the deficit in the last financial year.
The Health Secretary has said that this new funding puts Hywel Dda on a “fair funding basis”, but CCLP points out that if the board’s funding has only just become “fair” this raises additional questions about how much the local NHS budget has been “short-changed” in every year since the National Assembly began.
A review by the Welsh Government, as part of the Targeted Intervention support provided to Hywel Dda Health Board, found that two factors, demographics and scale, generated excess costs that were unavoidable to the Board.
The review, undertaken by Deloitte LLP, confirms the view held by many people in Ceredigion and mid and west Wales that Hywel Dda faces a unique set of healthcare challenges.
Hywel Dda is consulting the public on three alternative proposals for providing clinical care, closing and/or downgrading Withybush Hospital, Prince Philip hospital in Llanelli and Glangwili hospital in Carmarthen. In all three proposals community care would be strengthened so that more people can be treated and supported closer to home. In all versions Bronglais hospital in Aberystwyth would remain as a District General Hospital.
The 12-week public consultation began on 19 April and will end on 12 July. Ceredigion CLP is also critical of the board’s plans for obtaining the views of the public, which it points out do not include any meetings with platform speakers open to the general public. CCLP says this is unacceptable.
WG to miss climate change targets
THE WELSH GOVERNMENT will miss its own targets for reducing greenhouse gas emissions, says a National Assembly committee.
The Climate Change, Environment and Rural Affairs Committee examines the issue in its first ever climate change annual report.
In its Climate Change Strategy published in 2010 the Welsh Government set out its target of reducing greenhouse gases in Wales by three per cent year-on-year, and at least a 40% reduction by 2020.
The Committee was given three reasons for the failure – the European Union Emissions Trading Scheme, the economic make-up of Wales and weather patterns.
But the Committee concluded that these variables should have been taken into account when the policies were developed and targets set.
The Welsh Government is being advised on its new approach, framed by the Environment (Wales) Act 2016, by the UK Committee on Climate Change, which has recommended it set new, lower targets in the short term.
The Assembly committee believes this is regrettable but necessary given the lack of progress by the Welsh Government.
Members also learned that the level of engagement in the Welsh Government’s Cabinet on climate change was insufficient, with a lack of joint-working across different departments.
Even though the European Union Emissions Trading Scheme may be a reason for missing emissions targets, the Committee notes there is still no sign of a new scheme to take its place after the UK leaves the EU. The Committee concludes there needs to be a greater sense of urgency on addressing this matter.
“The Welsh Government’s targets on reducing greenhouse gas emissions in Wales were ambitious, but attainable,” said Mike Hedges AM, Chair of the Climate Change, Environment and Rural Affairs Committee.
“That the Government will miss these targets by some margin is deeply disappointing, and the Committee is not convinced by some of the reasoning behind the failure.
“We believe there needs to be a much more co-ordinated approach across government departments if Wales is to truly become a greener, more sustainable nation.
“In the short term we accept the view of the Committee on Climate Change that the Welsh Government revise down its targets.
“We have made a number of recommendations in our report around agriculture, forestry, housing and transport which we believe will ensure ministers will deliver on their climate change commitments and obligations.”
Conservatives crank-up calls for Carwyn to go
THE CONSERVATIVES have called for Carwyn Jones’s replacement as Labour leader in Wales to be chosen sooner rather than later.
Andrew RT Davies, leader of the Conservatives in the Assembly, has raised fears of legislative inertia and lack of progress on key projects while uncertainty continues around the identity of Mr Jones’s successor.
Mr Davies has warned that Wales faces a period of ’rudderless leadership’ in Welsh Government, if the process to select Carwyn Jones’ replacement is allowed to drag on until December.
The Conservatives say that internal wrangling within Welsh Labour over the electoral system used to elect leaders could delay a contest by months, with some Labour members calling for the introduction of ‘one-member-one-vote’.
But Mr Davies is concerned that a ’vacuum at the heart of Welsh politics’ could have serious consequences for public services in Wales.
He said: “The First Minister’s decision to stand down has created an immediate vacuum at the heart of Welsh politics, and we now face a period of rudderless leadership whilst the Labour Party works out how to elect his replacement.
“They need to get a move on, for the sake of our public services and public confidence in devolution.
“Welsh NHS waiting lists are spiralling, we have a teacher recruitment crisis, and take-home pay is the lowest in any part of the UK.
“It is simply unacceptable for the country to be left in limbo until the end of the year.
“Frankly, the majority of the public are unconcerned by the mechanism used to determine Carwyn’s replacement, but we need to see a new First Minister with a mandate to take Wales forward in the coming weeks – not months.”
Mr Davies’ words were subsequently given more force when the outgoing First Minister refused to commit the Welsh Government to its preferred ‘Black Route’ for the M4 relief road.
Speaking in First Minister’s Questions, Carwyn Jones refused to back the route, despite his government having spent millions of pounds in preparatory work for its development – and having taken that route through to public consultation.
A number of routes have been proposed, but First Minister Carwyn Jones and the Welsh Government’s favoured option has always been the ‘black route’.
In May 2016 Carwyn Jones confirmed that the Welsh Government would not support the alternative – the ‘Blue Route’.
The First Minister said at the time: “One thing I will say is we wouldn’t support the blue route. There are a number of reasons for this.
“First of all, the blue route is dual carriageway, not a six-lane motorway, and that seems to me to defeat the whole object of a new road.”
Yet, when asked to reaffirm his government’s commitment to an M4 Relief Road, the First Minister refused – even claiming that he’d never publicly expressed a preference.
Speaking outside the Chamber, Leader of the Welsh Conservatives – Andrew RT Davies – said: “It looks like the M4 relief road is going to be the first casualty of Labour’s leadership contest.
“Despite spending millions of pounds preparing for the project – and despite having repeatedly backed the black route – the First Minister has now distanced himself from taking a decision.
“This is just the first major decision that will now be parked until a new leader is in place.
“This is why we need to see a swift resolution of the Labour leadership crisis, before the sense of inertia takes hold.
“On the current timetable, the new First Minister is unlikely to be in post before Christmas – just weeks before we leave the European Union, and several months after the public inquiry into the M4 relief road has reported.
“These decisions cannot simply be parked, and the Welsh public can’t be held to ransom because the Labour Party cannot agree on how to elect a new leader.
“That’s why we need to see a new First Minister with a mandate to take Wales forward in the coming weeks – not months.”
Meanwhile, the Conservatives’ shadow spokesperson on local government, Janet Finch-Saunders has drawn attention to the potential for the First Minister’s impending departure to leave other major reforms in limbo.
Ahead of a Conservative debate on local government in the Assembly on Wednesday (April, 25), Ms Finch-Saunders, warned that the uncertainty was having a negative impact on already creaking frontline services.
She said: “Just weeks ago the Welsh Government announced its third major set of proposals to reform local government in just a few years.
“They’ve spent considerable amounts of taxpayer money, and wasted several years discussing disruptive plans which have led to a sustained period of uncertainty for local authorities.
“With the First Minister’s impending resignation you have to wonder where the latest reincarnation of forced mergers is heading – after all, there’s no certainty that the same Local Government Secretary will even be in post under a new leader.
“What is clear is that the vast majority of Welsh councils are firmly against these disruptive and counter-productive plans.
“We all want to see the cost of politics reduced, but councils are already exploring collaboration on a regional level, and we would not back mergers without the consent of local residents and taxpayers.”
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