The Welsh Government’s draft budget reveals significant funding increases across departments, but critics question if it’s enough to address ongoing challenges.
Cardiff: The Welsh Government is rolling out a budget that gives every department more cash than last year. Finance Minister Mark Drakeford is talking about a “brighter” future, but some folks think the increases just don’t cut it, especially with the big cuts coming in the 2024-2025 budget.
Today, Drakeford shared the spending plans for the next financial year, detailing how they’ll manage the £26 billion budget. It’s a big deal because all departments, from health to education, are set to see boosts in funding. The government promises this will lead to major investments in schools, the NHS, housing, and public transport.
They’re claiming an extra £1.5 billion compared to last year, but there’s a bit of confusion since the UK Government said it was giving Wales £1.7 billion. The Welsh figure is just for one year, while the UK’s includes two years of spending. For the first time, they’re also saying capital spending will exceed £3 billion.
One of the biggest highlights is the NHS getting a 40% boost in capital funding and nearly 4% in revenue. But some are skeptical about whether that’s enough to really make a difference. Drakeford insists it’ll help tackle waiting lists and improve mental health services, but he also mentioned that some funds will go towards fixing up the aging NHS facilities.
On the coal tip restoration front, the UK Government is chipping in £25 million, but that’s just a drop in the bucket for what’s needed. The Welsh Government plans to spend over £100 million on coal tip safety this term, combining various funding sources.
Transport is getting a nice bump too, with a 12% increase in revenue, which means an extra £70 million. They’re aiming to modernize the railways and improve bus services, but some operators are worried it won’t be enough to keep everything running smoothly.
Arts funding is also up by 3.6%, but many in the arts community feel it’s still not enough to recover from last year’s cuts. Drakeford acknowledged the criticism, saying it’s a step in the right direction.
There won’t be any rise in income tax, but the Landfill Disposals Tax is going up by 22%. Council tax is still expected to rise, as local authorities are facing budget shortfalls despite a 4.3% increase in grants.
Now that the budget is out, Labour needs to get support from at least one other member to pass it in the Senedd. They’ve got 30 out of 60 seats, so negotiations are crucial. Plaid Cymru has already expressed reluctance to work with Labour, raising concerns about fair funding for Wales.