11 January 2019
The Welsh Government’s final budget 2019-20 will be debated in the Assembly on 15 January, this blog includes information on the allocations made in the budget and changes since the Draft Budget.
Click here to explore the budget using our interactive tool.
The additional funding to departments from Draft to Final Budget is £111 million.
Two-thirds of the additional funding is for Local Government and Public Services department, through: the local government settlement; capital; and business rate reliefs, predominantly for the retail sector.
The main additional allocations for 2019-20 were:
£77 million to Local Government and Public Services
- £13m so local government settlement is “cash flat”; £1.2 million extra to raise funding floor to -0.5%; £7 million to raise social care capital limit to £50,000; and £30 million additional General Capital Funding.
- £23.6m non-domestic rates relief, to enhance high street rates relief scheme and £2.4m more for discretionary rates relief. This matches the UK Budget consequential relating to the English retail discount announced in the UK Budget.
£21.6 million to Education
- Includes £7.5 million for implementing teachers’ pay award, other allocations to: Work based learning; .FE provision; and pupil development grant.
£5 million to Economy and transport capital – museum, archive and library services
£4.9 million to Energy, Planning and Rural Affairs
2.3 million to Health and Social Services
Tax forecasts in Welsh Government Final Budget differed slightly from the Draft Budget:
- Income tax forecast revenue reduced by £40m mainly due to personal allowance change. No net impact on Welsh Government budget, as will be accounted for in the block grant adjustment.
- Application of latest OBR economic forecasts led to a £2m reduction in Land Transactions Tax and £3m upward revision in Landfill tax revenues.
The UK Autumn Budget 2018 included additional for the Welsh Government
£425.9m additional funding for 2019-20. Though £333mof this was previously announced funding for the NHS and already included in Welsh Government Draft Budget. Other main consequentials were £38m for social care and £36m business rates.
Article by Martin Jennings, National Assembly for Wales Research Service