Welsh Government claims budget leaves "gaps in funding"
Rishi Sunak's announcement didn't include any mention of coal tips or rail infrastructure
Last updated 27th Oct 2021
Welsh Government ministers have said the Chancellor's spending review leaves "gaps in funding" for Wales.
Rishi Sunak set out a variety of plans for spending and taxes in the budget earlier.
They included an extra £2.5bn for the Welsh Government to spend on average each year, and funding £120m worth of levelling up projects.
The First Minister said on Twitter that the budget 'spectacularly fails to meet the scale of the task ahead.'
Rebecca Evans, the Welsh Government’s Finance Minister, said: “This UK Government Spending Review hasn’t delivered for Wales. Vital funding priorities, such as the long-term remediation of coal tips and greater funding in rail infrastructure, have been ignored.
“While the Spending Review does give us some medium term financial certainty and some additional investment, it is more than offset by the inflationary and system pressures that we are facing. The budget fails to meet the scale of the challenge that families, public services and the wider economy are still facing as a result of the pandemic.
“The fact remains that there are clear gaps in funding where the UK Government should be investing in Wales and it has chosen not to. Arrangements for replacing EU Structural Funds remain unclear but what we do know is it falls well short of the £375m we were receiving – these are funds that support skills, businesses and decarbonisation. HS2 is expected to have a negative impact of £150m per year on the Welsh economy, while the failure to back a long-term solution for Wales’ coal tips could create an additional financial pressure of at least £60m per year.
“The limited measures announced by the Chancellor to help households grappling with the increase in the cost of living don’t go nearly far enough. Further steps should be taken to target support to lower income families struggling as a result of the cut to Universal Credit, the future increase in National Insurance contributions, and spiralling energy prices.
“While there can be no doubt that we have been left with some difficult choices I am determined to deliver a Budget that builds a stronger, greener, fairer Wales - helping public services and our economy recover from the pandemic, and moving us closer towards being a zero-carbon nation.”
The UK Government’s Spending Review sets out its spending plans until 2024/25. On 20th December the Welsh Government will publish its Budget outlining its own spending plans over that period.
One announcement Rishi Sunak is hoping will benefit Wales is the reduction in air passenger duty for flights between Wales, Scotland and Northern Ireland, from April 2023.
Spencer Birns, CEO at Cardiff Airport said: “We welcome the fact that the UK Government is recognising that APD is a tax that hinders growth and connectivity, and that its reduction will make domestic air travel more accessible to people in the UK.
"However we are disappointed that we need to wait 18 months for this reduction to come into effect. The COVID-19 crisis has had a devastating impact on the aviation industry, and we believe that strong connectivity across the UK is essential for recovery. We have always been strongly in favour of the abolition of APD as this will positively impact regional airports like Cardiff, as well regional economies across the UK. Whilst the Chancellor’s announcement is a step in the right direction, this doesn’t go far enough, quickly enough.”
The policy was criticised by Plaid Cymru, who claim the Chancellor failed to set a global example ahead of the Cop26 climate conference.