The NHS and frontline council-run services, including schools and
social care, are at the heart of the 2024-25 draft Budget,
Finance Minister said today [Tuesday 19
December].
There will be an extra £450m for the NHS and the core local
government settlement will increase by 3.1%. But even with the
additional funding, health boards and councils face a very
difficult year ahead.
Speaking as she published the Welsh Government’s spending plans
for 2024-25, the Finance Minister said that Welsh Ministers had
faced the “most stark and painful budget choices for Wales in the
devolution era” as they developed the draft Budget.
As a result of persistently high inflation, Wales’ overall budget
is worth £1.3bn less in real terms than when it was set in 2021;
and the settlement, which largely comes from the UK Government in
the form of a block grant, is not sufficient enough to respond to
the extreme pressures that public services, businesses and people
are facing.
Finance Minister, , said:
“We have had to take some really difficult decisions to radically
redesign our spending plans to focus funding on the services
which matter most to the people of Wales.
“After 13 years of austerity, a botched Brexit deal, and the
ongoing cost-of-living crisis, this is the toughest financial
situation Wales has faced since the start of devolution. Our
funding settlement, which comes largely from the UK Government,
is not enough to reflect the extreme pressures Wales faces.
“We have been presented with the most stark and painful budget
choices in the devolution era. We have reshaped departmental
spending plans so that we can invest more in the NHS and protect
core local government funding for schools, social care and the
other services we rely on every day.
“While the UK Government has not provided Wales with a funding
settlement that recognises the impact of inflation, we have made
changes to our spending plans and targeted investment towards the
public services we all value the most.”
The additional funding for the NHS in 2024-25 comes on top of the
additional £425m which was announced in October for the remainder
of this financial year, and which was baselined into the budget
for the future. This means that Health will receive more than a
4% increase for 2024-25, compared to less than 1% in England.
The core local government settlement, which along with local
council tax, funds services including schools, social services
and social care, bin collections and local leisure facilities,
will also be protected, with a 3.1% increase.
The draft Budget has been reshaped in line with the Welsh
Government’s principles and values, which include protecting core
frontline services, wherever possible; delivering the greatest
benefit to hardest hit households; and prioritising jobs wherever
possible.
The Welsh Government will continue to provide support to people
hardest hit by the cost-of-living crisis, including through the
Council Tax Reduction Scheme and a £384m package of support for
non-domestic ratepayers, which includes a fifth successive year
of relief for retail leisure and hospitality businesses.
A new £20m Future Proofing Fund will be introduced in early
2024-25 for businesses.
The Finance Minister also said the government will be carefully
examining whether charges for some services – such as NHS dental
care, university tuition fees and domiciliary care – need to be
raised to help raise extra funding for public services and higher
education, in light of the current budget situation.
Notes to editors
Link to draft Budget documents 2024-25:
English
