Meetings

Debate: Budget flexibilities and the operation of the UK Funding Framework

This page gives details of any meetings held which will, or did, discuss the matter, and includes links to the relevant Papers, Agendas and Minutes.

Note: Meeting Agenda can change at short notice. Particularly where future meeting dates are indicated more than a week in advance. Please check before planning to attend a Committee Meeting that the item you are interested in has not been moved.

Meeting: 27/02/2024 - Plenary (Item 4)

Debate: Budget flexibilities and the operation of the UK Funding Framework

NNDM8497 Lesley Griffiths (Wrexham)

To propose that the Senedd:

1. Recognises that the Welsh Government's fiscal levers are limited.

2. Believes that the budgetary flexibilities available to the Welsh Government are insufficient.

3. Notes the need for greater predictability and certainty of the Welsh Government’s funding arrangements to support its budget planning and that of partner organisations.

4. Acknowledges that the Welsh Government Reserve and borrowing limits are the same as when they were set in 2016.

5. Calls upon the UK Government to provide greater fiscal flexibilities for the Welsh Government, in the interests of effective budget management, including immediately:

a) addressing the impact of inflation on borrowing and reserve limits since 2016;

b) subjecting borrowing and overall reserve limits to annual review; and

c) abolishing reserve draw-down limits.

Co-submitters

Darren Millar (Clwyd West)

Heledd Fychan (South Wales Central)

Jane Dodds (Mid and West Wales)

The following amendments were tabled:

Amendment 1 Heledd Fychan (South Wales Central) 

Add as new point after point 4 and renumber accordingly:

Regrets that Westminster's lack of fair funding and fiscal flexibility has led to billions of money owed from HS2 funding and the inability to invest in local energy production using Crown Estate funds.

Amendment 2 Heledd Fychan (South Wales Central)

Add as new sub-point at the end of point 5:

replacing the Barnett Formula in order to remedy the inequity across Wales's current fiscal and funding settlement with a new system that moves away from ad-hoc funding of our public services and towards a framework that provides consistent, transparent and fair funding for Wales;

Amendment 3 Heledd Fychan (South Wales Central)

Add as new sub-point at the end of point 5:

increasing capital borrowing limits;

Amendment 4 Heledd Fychan (South Wales Central)

Add as new point at end of motion:

Calls upon the Welsh Government and the Senedd to jointly explore new ways of analysing the flexibility and fiscal frameworks of the Welsh Government, and their impacts on Wales, for example by establishing a Parliamentary Budget Office.

Amendment 5 Heledd Fychan (South Wales Central)

Add as new point at end of motion:

Calls upon the Welsh Government to formally request powers to set specific income tax bands for Wales.

Minutes:

The item started at 14.46

Voting on the motion and amendments under this item was deferred until Voting Time.

NNDM8497 Lesley Griffiths (Wrexham)

To propose that the Senedd:

1. Recognises that the Welsh Government's fiscal levers are limited.

2. Believes that the budgetary flexibilities available to the Welsh Government are insufficient.

3. Notes the need for greater predictability and certainty of the Welsh Government’s funding arrangements to support its budget planning and that of partner organisations.

4. Acknowledges that the Welsh Government Reserve and borrowing limits are the same as when they were set in 2016.

5. Calls upon the UK Government to provide greater fiscal flexibilities for the Welsh Government, in the interests of effective budget management, including immediately:

a) addressing the impact of inflation on borrowing and reserve limits since 2016;

b) subjecting borrowing and overall reserve limits to annual review; and

c) abolishing reserve draw-down limits.

Co-submitters

Darren Millar (Clwyd West)

Heledd Fychan (South Wales Central)

Jane Dodds (Mid and West Wales)

The following amendments were tabled:

Amendment 1 Heledd Fychan (South Wales Central) 

Add as new point after point 4 and renumber accordingly:

Regrets that Westminster's lack of fair funding and fiscal flexibility has led to billions of money owed from HS2 funding and the inability to invest in local energy production using Crown Estate funds.

A vote was taken on amendment 1:

For

Abstain

Against

Total

13

0

37

50

Amendment 1 was not agreed.

Amendment 2 Heledd Fychan (South Wales Central)

Add as new sub-point at the end of point 5:

replacing the Barnett Formula in order to remedy the inequity across Wales's current fiscal and funding settlement with a new system that moves away from ad-hoc funding of our public services and towards a framework that provides consistent, transparent and fair funding for Wales;

A vote was taken on amendment 2:

For

Abstain

Against

Total

12

0

38

50

Amendment 2 was not agreed.

Amendment 3 Heledd Fychan (South Wales Central)

Add as new sub-point at the end of point 5:

increasing capital borrowing limits;

A vote was taken on amendment 3:

For

Abstain

Against

Total

12

0

38

50

Amendment 3 was not agreed.

Amendment 4 Heledd Fychan (South Wales Central)

Add as new point at end of motion:

Calls upon the Welsh Government and the Senedd to jointly explore new ways of analysing the flexibility and fiscal frameworks of the Welsh Government, and their impacts on Wales, for example by establishing a Parliamentary Budget Office.

A vote was taken on amendment 4:

For

Abstain

Against

Total

12

0

38

50

Amendment 4 was not agreed.

Amendment 5 Heledd Fychan (South Wales Central)

Add as new point at end of motion:

Calls upon the Welsh Government to formally request powers to set specific income tax bands for Wales.

A vote was taken on amendment 5:

For

Abstain

Against

Total

12

0

39

51

Amendment 5 was not agreed.

A vote was taken on the motion:

NNDM8497 Lesley Griffiths (Wrexham)

To propose that the Senedd:

1. Recognises that the Welsh Government's fiscal levers are limited.

2. Believes that the budgetary flexibilities available to the Welsh Government are insufficient.

3. Notes the need for greater predictability and certainty of the Welsh Government’s funding arrangements to support its budget planning and that of partner organisations.

4. Acknowledges that the Welsh Government Reserve and borrowing limits are the same as when they were set in 2016.

5. Calls upon the UK Government to provide greater fiscal flexibilities for the Welsh Government, in the interests of effective budget management, including immediately:

a) addressing the impact of inflation on borrowing and reserve limits since 2016;

b) subjecting borrowing and overall reserve limits to annual review; and

c) abolishing reserve draw-down limits.

Co-submitters

Darren Millar (Clwyd West)

Heledd Fychan (South Wales Central)

Jane Dodds (Mid and West Wales)

For

Abstain

Against

Total

51

0

0

51

The motion was agreed.


Meeting: 27/02/2024 - Plenary (Item 3)

Debate: Budget flexibilities and the operation of the UK Funding Framework - Withdrawn

NDM8492 Lesley Griffiths (Wrexham)

To propose that the Senedd:

1. Recognises that the Welsh Government’s fiscal flexibilities are insufficient and constrain its ability to deal with the unprecedented pressures and uncertainty facing Wales, including responding quickly and effectively to emerging needs and opportunities.

2. Recognises the Welsh Government is dependent on UK Government decisions and timings, and the need for greater predictability and certainty of the Welsh Government’s funding arrangements to support its budget planning and that of partner organisations, including local authorities.

3. Acknowledges that the Welsh Government Reserve and borrowing limits are the same as when they were set in 2016 and, in 2024-25, will be worth 23% less in real terms than when they were introduced in 2018-19.

4. Notes the lack of fairness and consistency regarding the UK Government’s decisions on devolved government funding flexibilities and that the Welsh Government’s arrangements are significantly less generous than Scotland’s and its capital borrowing arrangements far less generous than Northern Ireland’s.

5. Calls upon the UK Government to provide greater fiscal flexibilities for the Welsh Government, in the interests of effective budget management, enabling greater investment and delivering better outcomes for the people of Wales, including immediately:

a) indexing the Welsh Government’s borrowing and overall reserve limits to inflation; and

b) abolishing the Welsh Government’s reserve draw-down limits.

The following amendments were tabled:

Amendment 1 Darren Millar (Clwyd West)

Delete all and replace with:

1. Recognises that the Welsh Government's fiscal levers are limited.

2. Notes that the budgetary flexibilities available to the Welsh Government are insufficient.

3. Recognises the need for greater predictability and certainty of the Welsh Government’s funding arrangements to support its budget planning and that of partner organisations.

4. Acknowledges that the Welsh Government Reserve and borrowing limits are the same as when they were set in 2016.

5. Calls upon the UK Government to provide greater fiscal flexibilities for the Welsh Government, in the interests of effective budget management, including immediately:

a) subjecting borrowing and overall reserve limits to annual review; and

b) abolishing reserve draw-down limits.

If amendment 1 is agreed, amendments 2, 3 and 4 will be de-selected. 

Amendment 2 Heledd Fychan (South Wales Central) 

Add as new point after point 4 and renumber accordingly:

Regrets that Westminster's lack of fair funding and fiscal flexibility has led to billions of pounds which is owed from the funding of HS2 and the inability to invest in local energy generation using Crown Estate funds.

Amendment 3 Heledd Fychan (South Wales Central) 

Add as new sub-point at end of point 5:

review the Barnett Formula to address the unfairness in Wales' current funding and financial settlement;

Amendment 4 Heledd Fychan (South Wales Central) 

Add as new sub-point at end of point 5:

increase capital borrowing limits;

Amendment 5 Heledd Fychan (South Wales Central) 

Add as new point at end of motion:

Calls upon the Welsh Government and the Senedd to jointly explore new ways of analysing the flexibility and fiscal frameworks of the Welsh Government, and their impacts on Wales, for example by establishing a Parliamentary Budget Office.

Minutes:

The item was withdrawn