Welsh Government First Supplementary Budget 2016-17

22 June 2016

Article by Gareth Thomas and David Millett, National Assembly for Wales Research Service

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The Cabinet Secretary for Finance and Local Government (Mark Drakeford AM) laid the First Supplementary Budget 2016-17 on 21 June 2016. This was accompanied by an explanatory note and tables showing departmental allocations. This supplementary budget amends the Final Budget 2016-17, approved by the previous Assembly in March 2016.  The Assembly’s Finance Committee will be taking evidence from the Cabinet Secretary to scrutinise the allocations made in the supplementary budget next week.  There will be a debate and vote in plenary to authorise the supplementary budget motion on 12 July.

This supplementary budget sets out how the Welsh Government will allocate over £16 billion in 2016-17.  Of this, £14.5 billion has been allocated to Welsh Government Departments (known as DEL).   Of the remaining £1.5 billion, around £1 billion relates to forecast business rates receipts that will be redistributed amongst local authorities and £0.5 billion is other Annually Managed Expenditure (known as AME), which is demand led and the Welsh Government has no discretion over how this funding is spent.  In addition, £0.6 billion funding is retained as a central reserve for allocation later in the financial year.  Details of allocations to departments are set out in the infographic below.

Infographic showing headline figures from the First Supplementary Budget 2016-17

The main purpose of this supplementary budget is a restructure to reflect the Ministerial portfolio changes of the new Welsh Government.  Additionally, a small number of allocations have been made from reserves to reflect allocations made by the previous Welsh Government that were not in the Final Budget.  These allocations total £21.5 million in revenue and just under £9 million capital.

The revenue allocations include:

The capital allocations include: