Increase in NHS funding in new Welsh Government budget

Wales
Wales
Politics
Monday 16 December 2019 at 1:16pm

Over half of the next Welsh Government budget to be spent on health, the new budget shows.

The Welsh Government said its funding for the NHS will increase by £342m - a total of £8.74 billion in 2020-21 which is a 4.75% increase in cash terms.

The draft budget also highlights Welsh rates of income tax will not change in the coming year.

The second biggest area of spending is housing and local government, including including schools and social care, which will cost £4.5 billion - £1.1 billion of that will be raised from business rates.

The Revenue Support Grant to local councils is set to go up by 3.6% in cash terms.

The Welsh Government also says it is spending £2 billion over five years on social housing. Credit: ITV News

The Welsh Government says the new budget will tackle the climate emergency. Credit: PA Images

The Welsh Government also said it will spend £2 billion over five years on social housing. This will include £2bn on social housing, which it says will lead to the building of 20,000 affordable homes.

However, the draft budget proposal includes the freezing of the Housing Support Grant, which helps people avoid becoming homeless, at £127 million a year.

The draft budget proposal includes the freezing of the Housing Support Grant. Credit: ITV News

Plaid Cymru says the draft budget shows a lack of ambition.

Twenty years of Labour rule in Wales has shown us that more money for our NHS doesn’t in itself mean better services. What we need to see from this Labour government is a strategic plan on how this extra funding will be spent on preventative measures instead of the continued mismanagement of our NHS and health boards that are still in special measures. Meanwhile, local government is still not being given the level of funding it so desperately needs to deliver crucial front line public services. The £140m package for low carbon transport is not nearly ambitious enough and such a small package in the face of such a colossal global climate crisis shows that this Labour government isn’t taking the issue seriously enough.

In the draft, the Welsh Government also said it will put £80m into a New Treatment Fund, which aims to cut waiting times for new medicines.

It will also put £575m into providing 100,000 apprenticeships for all ages.

Funding for the Welsh budget comes from a combination of the UK Government, Welsh income tax, business rates and other taxes.

The UK Government provides 80% of the funding.

The Senedd will debate the draft budget in the early part of 2020.

Responding to the draft proposals, Cymorth Cymru said it was disappointed with Welsh Government's plans.

The Welsh Conservatives also criticised the draft budget, saying it fell short of what was possible given the money allocated to it by the UK Government.