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28 February 2019
The Welsh Government’s Second Supplementary Budget 2018-19 will be debated in plenary on Tuesday, 5 March 2019.
The changes in this supplementary budget are summarised in the below infographic. Comparisons are made with the First Supplementary budget, published in June.
On the 14 February 2019, the Assembly’s Finance Committee scrutinised the Minister for Finance and Trefnydd on the budget. The Committee’s report (PDF, 719KB) was published on 26 February, and makes eight recommendations.
The budget allocated Total Managed Expenditure of £809.1 million. This increase includes additional financing from UK Government consequentials of £155.3 million (£98.1 million of revenue, £57.2 million of capital).
Some of the significant resource allocations from reserves include:
- £47.3 million in respect of the NHS Pay settlement, as well as £24 million in respect of the Review Body on Doctors and Dentists Remuneration (DDRB) recommendations.
- £24 million in respect of Betsi Cadwaladr University Health Board special measures.
- £30 million in respect for the increase in personal injury claims liability as a result of the changes to the discount rate.
- £53.3 million to Rail Franchise and Services Improvements (£28.5 million for early years support of the rail franchise and £24.8 million as a result of a capital to resource switch associated with the rail franchise access charge adjustment).
- £15.6 million for Teacher Development and Support, including £8.1 million to fund additional costs of the teachers’ pay award (nursery to year 11) and £7.5 million to help local authorities meet education cost pressures (including the teachers’ pay award)
There is also a non-fiscal resource allocation of £240 million, supported through HM Treasury and relating to the impact of raising the threshold at which student loans must be repaid.
Significant capital allocations include:
- £70 million for local government, comprised of £50m for the first instalment of a £100m three-year capital package and £20m for the first instalment of the three-year £60m public highways refurbishment grant.
- £27.8m for completion of the statutory process and essential activities around the M4 (such as environmental surveys)
- £26m for the Local Transport Fund
There are also two significant allocations of Financial Transactions, £30 million for the Wales Self Build Fund and £92 million for Business Finance Funds.
The full list of allocations, including movements within and between MEGs, is available in the Welsh Government’s budget documentation.