Welsh Government accused of lacking “candour and transparency” in draft budget

The Welsh Government has been accused of “lacking candour” in its Draft Budget proposals for the next financial year.

A report by the Senedd Finance Committee concluded that the Welsh Government has failed to provide clear information on the impact of its budget

Committee members analysed the Welsh Government’s proposed spending and taxation plans and concluded that explanations around where funding would be prioritised – and de-prioritised – were unclear.

Ministers have so far resisted tax rises to pay for services and pay rises for frontline staff currently striking.

However criticism was aimed by the committee at the Finance Minister, Rebecca Evans MS for “refusing to look into the impact of varying the tax rates.”

Peredur Owen Griffiths, Chair of the Finance Committee, 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 had not made a proper assessment of changing the tax rates which suggests that it was never a serious consideration.”

Both the Economy, Trade and Rural Affairs Committee and the Climate Change, Environment and Infrastructure Committee also raised concern with what they have described as a “lack of transparency from the Welsh Government.”

The Economy Committee’s report noted that despite the Welsh Government stating there was less money on the table, there was a “failure to set out the reduced number of businesses that they would be able to support.”

The Climate Change Committee said it experienced delays receiving information from the Welsh Government which negatively affected their ability to scrutinise the Draft Budget.

The Finance Committee has urged the Welsh Government to look again at its proposed level of support for people’s living costs – including the expansion of free childcare and increasing the value of the Educational Maintenance Allowance (EMA) to give more financial support to 16-19 year olds who want to continue learning.

It has also been proposed that the school holiday free school meals scheme should be extended up to, and including, the February 2024 half-term break.

The Equality and Social Justice Committee criticised the Welsh Government for being insufficiently focused on long-term solutions to the cost-of living crisis and for failing to provide the thinking behind their funding decisions.

Pressures on the health and social care workforce was identified as an ongoing concern of the Committee. Efforts to address these issues were recognised, but the report urges the Welsh Government to explain how it plans to reduce the reliance on agency and locum staff.

The Local Government and Housing Committee’s report also expresses concerns about the recruitment and retention of staff in the sector with a key recommendation calling for the Welsh Government to assist local authorities in expanding graduate and apprenticeship schemes.

Peredur Owen Griffiths continued; “The cost of living is affecting everyone at the moment but, as always, the poorest in society are bearing the brunt.

“Support from the Welsh Government for childcare and boosting the Educational Maintenance Allowance for young learners will be crucial in alleviating these struggles and should be made a priority.”

“Solving workforce issues in the NHS and social care also needs to be looked at. 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 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.”

Funding for sports and cultural venues facing closure should also be a priority.

According to the Culture, Communications, Welsh Language, Sport, and International Relations Committee, many venues that have long-term sustainable futures should be supported with Welsh Government funds to tide them over during the current crisis.

The Draft Budget will be debated in the Senedd today (Tuesday, 7 February). A final Budget is presented by the Welsh Government on 28 February, which is subsequently debated in the Senedd on 7 March.