THE SENEDD’s Finance Committee’s report on the Welsh Government’s Draft Budget for 2021-22, voices serious concerns for public services, inequality and the economic impact of the COVID-19 pandemic. 

The Committee is clear that the need to address and alleviate poverty is more critical than ever, with the pandemic deepening the problems already faced by low-income and disadvantaged households.

HEALTH AND SOCIAL CARE

The Finance Committee is worried about the impact of the pandemic on non-COVID care, due to sustained pressure on the NHS and its healthcare workers. The Finance Committee also believes the impact of the pandemic on mental health will be considerable over the next year and beyond.

The Health, Social Care and Sport Committee agrees that the public health emergency Wales is facing should not be underestimated, either in terms of responding to the immediate challenges of the pandemic, or the need to do what can be done to maintain the vital non-COVID services on which people rely.

The Committee believes the true scale of the implications for the health and wellbeing of people in Wales, may not become clear for years. The crisis has also exacerbated underlying issues, including the fragility of the social care sector, the ongoing health inequalities across Wales, and the need for a clear strategic vision to drive health and social care integration and service transformation.

LOCAL GOVERNMENT AND EDUCATION

The Finance Committee is concerned that increased funding in the local government settlement will not cover all cost pressures, such as social care, childcare, and education.

The Finance Committee is deeply concerned about the risks to children, particularly those from disadvantaged backgrounds and those in early years, falling behind in their education as a result of the pandemic. The Finance Committee is calling for more information about how funding will support learners to ‘catch up’ while also delivering the current ways of learning.

ECONOMY, SKILLS & REGENERATION

The Finance Committee heard evidence that the Draft Budget does not provide a coherent approach to supporting businesses through the pandemic. While recognising that it may be sensible to allow some degree of flexibility, the Committee is concerned that the implementation of the business support packages has been “patchy” with smaller businesses finding it harder to access funds. This has been further complicated by the different approaches to business support from different Governments within the UK.

The Committee believes the Draft Budget could have been clearer in outlining the Welsh Government’s long-term approach to potential shifts in consumer behaviour towards online retailers and the effect on local economies. The Welsh Government should rethink previous policies on revitalising town centres in light of the pandemic.

CHALLENGES NEED LONG-TERM APPROACH

Llyr Gruffydd MS, Chair of the Finance Committee said: “This is the final Draft Budget of the Fifth Senedd. This year the pandemic has delayed UK fiscal events, resulting in delays to publication of the Welsh Government’s Draft Budget. This has reduced our time for scrutiny which is particularly concerning given that COVID-19 will have an impact on public spending for years to come.

“This Draft Budget is very much a draft. A lack of forward-funding figures with only a one- year revenue funding settlement, and the timing of the UK Government’s Budget set later for 3 March has made budget-setting even more challenging for the Welsh Government.

“Much of our work is focused on the COVID-19 pandemic. Whilst welcoming the extra money for health and social services, the Committee is concerned about the long-term impacts on non-COVID care. We also have serious concerns over workforce capacity and mental health.

“Our businesses need support more than ever, with many being forced to close. For them to have a future after this pandemic, we support calls for the simplification and consolidation of the financial assistance schemes available.

“COVID-19 has brought many serious challenges and the financial impact on health, the economy and public services will be felt by society for years to come. While there is a need to respond to the immediate situation we are hopeful that there is an opportunity for longer-term planning to ensure that Wales can recover strongly.”