An academic warns that Mark Drakeford’s budget may not be as beneficial as claimed, suggesting modest spending increases ahead for Wales.
Cardiff: So, Mark Drakeford just dropped the draft budget for Wales, right? He’s saying there’s an extra £1.5 billion to spend, which sounds great. He’s all about a brighter future, especially for the NHS and families needing extra support. But hold on a second—some experts are raising eyebrows.
One finance expert, Mr. Ifan, is saying that the budget might not be as rosy as it seems. He points out that while it looks like there’s a big boost, a lot of that money was already expected from the UK government. So, the actual increase in spending might be a bit more modest than what’s being touted.
He explains that the budget for 2024-25 changed a lot, and there’s about £557 million in day-to-day spending that’s not included in the baseline figures. If you factor that in, it’s like there’s no real growth in the budget from this year to next. Yikes!
Mr. Ifan also mentions that while the Welsh Government is saying they’re prioritizing frontline services, some areas might still face cuts. And with tighter spending plans expected from the UK government after 2025-26, things could get tricky for public services.
Local councils are already feeling the pinch. They’re looking at a £560 million gap, and even the average 4.3% increase in funding won’t cover it. Some councils are worried they might have to raise council tax just to keep things running.
Flintshire’s council leader expressed disappointment with their 3.3% rise, saying the threat of bankruptcy is looming. Meanwhile, Plaid Cymru leaders are calling for a bigger budget pie, stressing that the current funding just isn’t enough to meet the growing demands.
So, while Drakeford’s budget sounds good on paper, the reality might be a bit different. It’s definitely a situation to keep an eye on as things unfold.