First Minister, : The Cabinet met on 1
August to discuss the significant financial pressures we are
facing in the 2023-24 budget, and to continue preparations for
the 2024-25 budget round.
When we made our budget for 2023-24, we drew on all our available
resources to protect frontline services and provide targeted
cost-of-living support to individuals and the economy.
But even after doing all that, our financial position after the
UK Spring Budget in March, was up to £900m lower in real terms
than when that budget was set by the UK Government at the time of
the last spending review in 2021.
This is the toughest financial situation we have faced since
devolution.
We are in this position because of the record levels of inflation
we have experienced post-pandemic; because of the mis-management
of the economy and public finances by successive UK governments
over the last 13 years and because of unfunded commitments made
by the UK Government, particularly in relation to public sector
pay.
The Cabinet will be working over the summer to mitigate these
budgetary pressures based on our principles, which include
protecting frontline public services, as far as possible, and
targeting support towards those at greatest need. A further
update will be provided to the Senedd once this work has been
completed.
This statement is being issued during recess in order to keep
members informed. Should members wish me to make a further
statement or to answer questions on this when the Senedd returns
I would be happy to do so.
