October 30, 2024 - 1103 views
Finance Secretary Mark Drakeford has welcomed the new UK Government’s first Budget and the additional £1.7bn it will bring to Wales over two years.
Speaking after the Chancellor’s statement, he said it was a first step towards “repairing the damage caused over the last 14 years by previous UK governments”.
And he said Rachel Reeves – the UK’s first ever female Chancellor – was listening to Wales by investing in coal tip safety and increasing Wales’ capital budget.
Finance Secretary, Mark Drakeford said: "This is a Budget focused on fixing the foundations; rebuilding public services and creating a pathway of investment for growth.
"It marks the first steps in the right direction after 14 years of economic mismanagement by previous UK governments and the impact its decisions have had on people and communities.
"It is clear the Chancellor is listening to what Wales needs. I look forward to working with the UK Government on our other priorities, including securing fair funding for rail."
Following today’s UK Budget, the Welsh Government’s settlement for 2025-26 is more than £1bn higher than it would have been under the previous UK Government. Taking 2024-25 and 2025-26 together, the settlement is around £1.7bn higher compared to what it would have been.
The UK Budget included the following for Wales:
£1.7bn of extra funding for public services and capital investment in Wales.
£25m to support the Welsh Government’s ongoing investment to make coal tips safe
Moving to the next stage on the Celtic Freeport with designation of the tax sites
Support for green hydrogen projects in Milford Haven and Bridgend
Ended mineworkers pension fund injustice
Increase in National Living Wage for tens of thousands of workers in Wales.
The Finance Secretary added: "The additional funding is welcome and while the Chancellor’s Budget is designed to create growth the wider financial context is still difficult.
"We will be making our spending decisions as we develop our Draft Budget in the weeks ahead."
In response, Janet Finch-Saunders Conservative Member of the Senedd for Aberconwy claimed the budget stifles Welsh economic growth.
She added: “North Wales wasn’t mentioned once in the hour-long Budget which is now already haunting our region.
“No commitment on Wylfa.
“No commitment for a HS2 consequential for Wales.
“No commitment to improve the North Wales main line.
“A disastrous commitment to rake in money from hard working farming families, many of whom do not have the cash, and will have to sell land to meet the bill, putting the future of entire businesses that have been in families for generations at risk.
“A jobs tax that will harm businesses and employees and stifle growth, taking £25bn from employers through changes to National Insurance.
“The most devastating thing of all is that this Halloween budget needed not be so haunting. Indeed, the OBR has declined to back the Chancellor’s claim of a £20bn black hole, so the budget did not need to be so severe”.
