The Welsh Government has proposed a budget with tougher times in mind, according to a National Assembly committee.
In considering the draft budget, the Finance Committee concluded that the coming financial year offered a better settlement for many than was expected, but that organisations should be using their allocations to prepare for potential cuts further down the road.
The Committee was concerned that it hadn’t seen evidence of this preparation taking place and it is urging organisations, particularly the health service and local government, to ensure they are thinking ahead and putting steps in place to enable them to manage with less in future years.
Further concerns were raised around NHS Wales and how some health boards did not yet have approved three-year plans, despite legislation requiring them to do so coming into force in 2014; the intention being to allow health boards more flexibility regarding budgets instead of working along strict annual timetables.
The Well-being of Future Generations Act was also a piece of legislation whereby the Committee expected to see progress, but was disappointed with how the requirements of the Act had been reflected in the draft budget documentation.
The Committee hopes to see a quantifiable improvement on this in the draft budget next year.
“The Welsh Government’s draft budget is a better settlement than many expected but with a caveat to expect tougher times ahead, said Simon Thomas AM, Chair of the Finance Committee.
“The Committee was disappointed to find that many organisations had not made plans with that in mind and we would urge them to put the necessary steps in place to prepare for such times.
“In particular the Committee was concerned that a number of health boards still do not have approved three-year spending plans, two years after the law requiring them was passed.
“The Well-being of Future Generations Act is a flagship law passed by the previous government to improve the lives of people in all aspects from health to education, social care, job opportunities, local community and the environment.
“But the Committee was disappointed with how the requirements of the Act had been reflected in the draft budget documentation. We hope to see a quantifiable improvement on this in future budgets.”
The Welsh Government’s draft budget will now be debated and voted on in a full meeting of the National Assembly at the Senedd in December.
Finance Committee - Scrutiny of the Welsh Government Draft Budget 2017-18 (PDF 1.89MB)