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The Senedd’s Finance Committee has criticised the Welsh Government’s draft budget for the next financial year – saying it lacks clarity.
The draft budget proposals for 2023/24 were published by the Welsh Government in December 2022.
What is the difference between the Senedd and the Welsh Government?
The Senedd, based in Cardiff Bay, is made up of 60 Senedd Members (previously known as Assembly Members).
Senedd Members are voted in by the electorate to vote on and scrutinise laws proposed by the Welsh Government.
But what is the Welsh Government?
The Welsh Government, based in Cathays Park in the centre of Cardiff, governs Wales, as its name suggests. It proposes new laws, which have to be approved by Senedd Members, and decides how to spend the money it receives from the UK Government Treasury.
The amount of money allocated to the Welsh Government is determined by the Barnett Formula, which is calculated based on levels of public spending in England, weighted by the population of Wales. This formula is also used when allocating funds to the Scottish Government and Northern Ireland Executive.
The Welsh Government is led by the First Minister of Wales, which is currently Welsh Labour’s Mark Drakeford.
What is a draft budget?
Each year, the Welsh Government sets its budget for the upcoming financial year. This determines how much money is spent in areas such as education and health, for example.
Before the final budget is set in stone, the Welsh Government releases a draft budget, which is scrutinised and voted on by Senedd Members.
The idea is that feedback provided will be used as part of the final budget proposals, which in turn is voted on by Senedd Members.
The Finance Committee, which is chaired by South Wales East Senedd Member Peredur Owen Griffiths, of Plaid Cymru, has analysed the Welsh Government’s proposed spending and taxation plans.
In its report, the committee said the draft budget did not make clear what spending cuts would need to be made in light of the tough economic situation.
What is the Senedd’s Finance Committee and who sits on it?
The chair of the Senedd’s Finance Committee is Plaid Cymru’s Peredur Owen Griffiths, who represents the South Wales East region.
Also on the committee is Labour’s Rhianon Passmore, who represents Islwyn.
Labour’s Mike Hedges and Conservative Peter Fox are the other members.
Mr Owen Griffiths said: “We understand that the funding decisions facing the Welsh Government are extraordinarily tough, but we were surprised and worried at the lack of candour in the Draft Budget.
“This is not the right way to deal with our committee and the Senedd generally, and undermines legitimate democratic scrutiny.
“The draft budget’s lack of detail – exacerbated by inflation and poor communication between Welsh and UK governments – is worrying, and it was surprising to learn that the Finance Minister [Rebecca Evans MS] had not made a proper assessment of changing the tax rates which suggests that it was never a serious consideration.”
The Finance Committee also urged the Welsh Government to rethink its proposed level of support for people’s living costs, calling for the introduction of a “Welsh Benefits Charter” – a unified benefits system to help with the cost-of-living crisis.
The committee also called for the expansion of free childcare and increasing Educational Maintenance Allowance (EMA) payments to help during the cost-of-living crisis – a call echoed by the Senedd’s Children, Young People and Education Committee.
Mr Owen Griffiths said the poorest in society were “bearing the brunt” of the cost-of-living crisis and added: “Support from the Welsh Government for childcare and boosting EMA for young learners will be crucial in alleviating these struggles and should be made a priority.”
Meanwhile, pressures on the health and social care workforce was highlighted as a concern, with a lack of clarity from Welsh Government over potential cuts to the health and social care sector “worrying”, according to the report.
Mr Owen Griffiths said: “Too much money is being wasted on agency and locum staff and the Welsh Government needs to make it clearer how it intends to alleviate staffing pressures, especially regarding recruitment and retention.”
The draft budget is being debated in the Senedd on Tuesday February 7, with a final budget set to be presented by the Welsh Government on February 28, which itself will be debated in the Senedd on March 7.
Mr Owen Griffiths added: “The Welsh Government now has time to assess ours, and other committees’ recommendations, and look again at its proposals before it presents its final budget.
“Our report makes concrete recommendations and we urge the Welsh Government to listen constructively and respond with a budget that better supports the people of Wales.”
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