'Wales should be entitled to its fair share of funding'

MS for North Wales

In the Senedd last week, we debated the Welsh Government’s annual draft budget. As always, there are questions and passionate debates over priorities for spending, but fundamentally, we should not be fighting over the crumbs for public services when the budget coming from Westminster is too small to start with.

Instead, we should be fighting for an end to 14 years of austerity and an end to cuts to public services. The Welsh Government’s budget is worth £1.3bn less than when the UK spending review was made in 2021 and councils in Wales are facing a deficit of £421m. Councils and public services across the UK are on their knees following over a decade of austerity, coupled now with massive inflationary pressures, caused by the disastrous Liz Truss premiership, and a botched Brexit, meaning any extra funding fell into a black hole.

In the latest Autumn Statement, Jeremy Hunt continued to spout the usual Tory mantra, saying that public services had to be more efficient, and that the UK Government wants an even smaller public state, continuing austerity! He is so far removed from the delivery of public services, which are at the heart of our communities and employ so many people in North Wales. Councils have reorganised, restructured, and made all the efficiencies possible over recent years trying not to cut front lines services such as education and social care.

Council tax used to contribute 24% of the local government budget, the rest came from central Government. Now it is 30% of the budget as Government funding has reduced and efficiencies have been made. Less money from UK Government to devolved Governments in real terms equals less services and higher council tax bills to close the gap. If funding had kept pace with growth in the economy since 2010, it would be worth £3.5bn more. The amount the Welsh Government can spend on capital projects such as buildings, roads and broadband is limited by the UK Government and so is cheap prudential borrowing. Broadband and railway infrastructure is not devolved.

I will, as always, continue to fight for Councils in North Wales to have fair funding and a bigger slice but when all Councils are facing massive budgetary pressures, (Cardiff council’s total funding gap is estimated to be £119m by 2028), because the pie is too small to start with, the fight is really with the UK Government Treasury. Wales should have more, based on any formula. The EU recognised this, hence why Wales was a net beneficiary under the EU, but that money no longer goes to the Welsh Government. Consequential funding from HS2 has not been received and instead is apparently being used to fix London’s potholes!

During the debate in the Senedd Chamber, Conservative Members pointed to 20mph and Senedd reform as frivolous expenditure. However, the change in speed limit was agreed last Senedd term, by Members from all parties and was implemented using one-off highway infrastructure funding, and so is not a recurring financial pressure like education or health. Regarding increasing Senedd members, no money has been spent on it yet and the money that will be spent on it will amount to 0.07% of the Welsh Government’s annual budget. There are currently just 60 members of the Senedd, less than some councils. There are 650 MPs and a massive 720 members of the House of Lords which is ever increasing, thanks to Tory cronyism.

Wales should be entitled to its fair share of funding; I will continue to fight to see that we receive it!