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.
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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
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
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
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