Budget 2020: What's in it for Wales?

The Chancellor Rishi Sunak has unveiled his first Budget, less than a month after taking on the role.

Against the background of rising demand for public spending and likely economic setbacks due to the coronavirus, he made some big pledges, including an extra £360 million for the Welsh Government to boost economic growth.

  • Watch as the Chancellor delivers the 2020 Budget

  • What's in it for Wales?

Mr Sunak told MPs that people voted in the General Election to "change the economic geography" of the UK, a reference to the Conservatives' pledge to 'level up' the economic performance of different areas. At present, Wales is one of the least prosperous parts of Britain.

The Chancellor promised local councils a £500 million hardship fund to help people hit by coronavirus. This is likely to add about £25 million to the Welsh Government's Budget, with ministers in Cardiff Bay deciding how it is distributed.

Rishi Sunak delivers his first Budget in the House of Commons Credit: PA

Extra money was also announced for flood defences, though it remains unclear how much Wales will receive.

Mr Sunak also said that the UK Government is changing where it funds science, moving away from a situation where half of all research takes place in London. Again, how this is extended to Wales will depend on the Welsh Government.

The Chancellor will also abolish the red diesel concession in two years time for most sectors but agriculture will keep it. He said other industries that get the concession for off-road diesel are some of the biggest polluters.

The Chancellor said there will also be an extra £360 million for the Welsh Government to boost economic growth.

Elsewhere, the Pant-Llanymynech by-pass on the Powys-Shropshire border got the go ahead.

The new road will almost entirely be in England but will remove congestion on the route between Wrexham and mid Wales. The scheme was cancelled by John Major's Conservative government but today's news was welcomed by the local Tory MP.

The Chancellor also announced £5 billion to roll out faster broadband across the UK. It's thought this pledge will disproportionately benefit Wales because it will prioritise hard to reach areas.

After the Chancellor sat down, The Treasury also made the following post-Budget announcements for Wales, not all of which were in the Chancellor's speech:

  • £360 million in additional funding for the Welsh Government

  • Support to develop A483 Pant Llanymynech bypass

  • £55 million for the Mid Wales Growth Deal

  • The rollout of gigabit capable broadband to the hardest to reach areas

  • Accessibility improvements for Newtown railway station in Powys

  • £12 million for full fibre broadband in south Wales

  • £4 million for full fibre broadband in Pembrokeshire

  • An independent economic review of the Western Gateway which stretches across Wales and the West of England

  • A commitment from the Treasury to establish a presence in Wales to ensure Welsh priorities are central to economic decision making.

Taking questions from AMs in the Senedd, Finance Minister Rebecca Evans said she remained hopeful that Wales will get additional funding to deal with flood repairs beyond its population share of the money announced for England, in view of the large number of Welsh communities hit by Storm Ciara and Storm Dennis. She also gave her reaction to the news that the Treasury would establish a presence in Wales.