Oral Answers to Questions

Richard Thomson Excerpts

Wednesday 18th January 2023 Commons Chamber

The Secretary of State was asked—

[Richard Thomson (Gordon) (SNP)]

1. What assessment he has made of the potential impact of inflation on the devolved budget for Wales.

[Owen Thompson (Midlothian) (SNP)]

14. What assessment he has made of the potential impact of inflation on the devolved budget for Wales.

[The Secretary of State for Wales (David T. C. Davies)]

The Welsh Government are well-funded to deliver public services in Wales. As a result of the autumn statement, Welsh Government funding is increasing by around £1.2 billion over the next two years. That is on top of the additional £2.5 billion a year on average announced at spending review. The Prime Minister has also been clear that we will halve inflation to ease the cost of living.

[Richard Thomson]

The Secretary of State says that the budget is increasing by £1.2 billion over the next two years, but inflation has already eroded the purchasing power of the Welsh Government in the current year by £1 billion. Since the UK Government are responsible for approximately 80% of the resource base of the Welsh Government, what further representations does he plan to make to the Chancellor of the Exchequer to ensure that that purchasing power for essential public services in Wales is made good?

[David T. C. Davies]

The overall funding amounts for the devolved Administrations, including the Welsh Government, have still increased in real terms over the period despite the impact of inflation. If the hon. Gentleman is serious about dealing with inflation, I hope he will support this Government as they propose to halve inflation over the coming year. In doing so, we will need to carefully control public spending in areas such as pay.