Siambr · Member of the Senedd · Register of record
Rt. Hon. Elin Jones
Tenures
- First Assembly Ceredigion Plaid Cymru
- Second Assembly Ceredigion Plaid Cymru
- Third Assembly Ceredigion Penfro Plaid Cymru
- Fourth Assembly Ceredigion Penfro Plaid Cymru
- Fifth Senedd Ceredigion Penfro Plaid Cymru
- Sixth Senedd Ceredigion Penfro Plaid Cymru
- Seventh Senedd Ceredigion Penfro Plaid Cymru
Ministerial roles
- Cabinet Minister for Finance Y Gweinidog Cabinet dros Gyllid
Contributions, by sitting day
162 contributions on record, newest first. Official verbatim record.
17
Open this sitting on the stage
5. Statement by the Cabinet Minister for Finance: Taxation (Wales) Bill cy
Lywydd, rwy'n falch o gyflwyno Bil Trethiant (Cymru) i'r Senedd, y pecyn hwn o newidiadau sy'n gam ar hyd taith datganoli trethi Cymru. Naw mlynedd yn ôl, pasiodd y Senedd hon ddeddfwriaeth yn cyflwyno'r Ddeddf trafodiadau tir a'r Ddeddf gwarediadau tirlenwi. Cefnogwyd hyn drwy sefydlu Awdurdod Cyllid Cymru. Mae Awdurdod Cyllid Cymru wedi datblygu hanes cryf o gyflawni, ac enw da am degwch sy'n seiliedig ar lefel uchel o ymddiriedaeth a pherthynas gydweithredol â threthdalwyr a'r rhai sy'n eu cynghori. Mae wedi ennill profiad gweithredol gwerthfawr o weinyddu trethi datganoledig ac wedi gwrando'n ofalus ar adborth gan drethdalwyr. Er nad yw gweinyddu trethi'n dda yn cael llawer o sylw mewn penawdau newyddion, mae'n sylfaenol i system dreth sy'n gweithredu'n dda. Mae'n falch gen i ddweud fod datganoli trethi yng Nghymru wedi bod yn llwyddiannus. Ers 2018, mae Awdurdod Cyllid Cymru wedi casglu mwy na £2.7 biliwn mewn trethi datganoledig, gan gefnogi'r gwasanaethau cyhoeddus y mae ein trigolion yn dibynnu arnyn nhw. Mae ein rhaglen lywodraethu yn cynnwys dyletswydd i sicrhau trethi teg, a thrwyddi mae'r Llywodraeth hon wedi ymrwymo i wneud yn siŵr bod refeniw yn cael ei godi mewn ffordd deg a syml. Fel rhan o'r ymrwymiad hwn, bydd angen i ni sicrhau bod ein deddfwriaeth drethi yn cael ei hadolygu a'i gwella'n rheolaidd a bod newidiadau technegol yn cael eu rhoi ar waith er mwyn gwneud yn siŵr bod y trethi yn gweithredu yn unol â'r bwriad. Mae trethi effeithiol yn dibynnu ar ansawdd y ddeddfwriaeth a'r gwaith sylfaenol o'u gweinyddu. Mae trethdalwyr yn haeddu deddfwriaeth sy'n eglur ac yn syml. Mae angen i gyrff cyhoeddus gael pwerau sy'n gymesur ac yn ymarferol, ac mae cyfrifoldeb ar Lywodraethau i ddysgu o brofiad ac i wneud gwelliannau lle mae angen eu gwneud. Dyna yw union bwrpas y Bil a gyflwynais i ddoe. Gadewch i mi fod yn glir: dyw'r Bil ddim yn cyflwyno trethi newydd; dyw e ddim chwaith yn newid cyfraddau treth na throthwyon treth, nac yn cyflwyno mathau newydd o ryddhad treth. Yn hytrach, mae'r Bil yn cyflwyno pecyn o newidiadau technegol a gweinyddol wedi'u targedu'n fanwl i dair Deddf trethi Cymru, sef Deddf Treth Trafodiadau Tir a Gwrthweithio Osgoi Trethi Datganoledig (Cymru) 2017, Deddf Treth Gwarediadau Tirlenwi (Cymru) 2017 a Deddf Casglu a Rheoli Trethi (Cymru) 2016. Pwrpas y Bil yw sicrhau bod ein trethi datganoledig yn parhau i weithredu mewn ffordd deg ac effeithiol. Mae'n Fil ymarferol sy'n canolbwyntio ar egluro system dreth ddatganoledig Cymru, ei chryfhau, a'i diogelu ar gyfer y dyfodol. Mae'r mesurau sydd ynddo yn ymateb i faterion ymarferol a thechnegol a nodwyd dros amser gan Awdurdod Cyllid Cymru, trethdalwyr, cynghorwyr proffesiynol a phartneriaid cyflawni. Mae'r Bil yn cynnwys mesurau fydd yn cefnogi Awdurdod Cyllid Cymru i gyflawni ei swyddogaethau mewn ffordd fwy effeithiol. Bydd yn egluro agweddau ar drefniadau llywodraethu yr awdurdod cyllid, bydd yn gwella'r ffordd y mae ei bwerau treth yn gweithio mewn gwirionedd, bydd yn cywiro problemau technegol sydd wedi dod i'r amlwg drwy brofiad ymarferol, a bydd yn mynd i'r afael â meysydd amwys o ran cymhwyso'r trethi datganoledig fel eu bod yn parhau i weithredu mewn ffordd briodol ac yn ei gwneud hi'n llai posib i anghydfodau diangen neu ganlyniadau anfwriadol ddigwydd. Bydd hefyd yn sicrhau bod deddfwriaeth Cymru yn cyd-fynd â datblygiadau gweinyddol neu ddeddfwriaethol perthnasol mewn mannau eraill yn y Deyrnas Unedig, pan fo hynny'n briodol. Bydd y Bil yn gwella'r ffordd y bydd prosesau ad-dalu ac ymholiadau trethi i Awdurdod Cyllid Cymru yn cael eu gweithredu, gan fynd i'r afael â bylchau presennol o ran gwybodaeth a phwerau arolygu. Bydd hefyd yn gwella tryloywder ac yn diogelu refeniw trethi. Bydd y cynigion hefyd yn fuddiol i drethdalwyr Cymru. Er enghraifft, bydd y Bil yn egluro sut y bydd rheolau llog talu hwyr yn cael eu cymhwyso fel na fydd trethdalwyr yn talu mwy na'r swm sy'n ddyledus. Bydd hefyd yn ymdrin ag achosion lle mae perchennog tŷ o dan y dreth trafodiadau tir yn ychwanegu partner at weithredoedd teitl eiddo, er enghraifft yn dilyn ail forgeisio. Fel y mae pethau ar hyn o bryd, gallent wynebu cyfraddau preswyl uwch. Bydd y Bil hwn yn atal hynny. Mae'n bwysig nodi bod y Bil hefyd yn cynnwys darpariaethau i wella ffyrdd o rannu gwybodaeth rhwng Awdurdod Cyllid Cymru ac awdurdodau lleol. Bydd y mesurau hyn yn cefnogi'r broses o ddatblygu sylfeini trethi mwy cywir, yn cryfhau gweithgarwch cydymffurfio, ac yn cyfrannu at ymdrechion ehangach ar draws y Llywodraeth i ddefnyddio data'n well wrth ddarparu gwasanaethau cyhoeddus. Wrth wneud hynny, fe fyddan nhw'n helpu i sicrhau bod gan gyrff cyhoeddus fynediad at y wybodaeth sydd ei hangen arnyn nhw, wrth gynnal mesurau diogelu priodol i drethdalwyr. Mae mesurau diogelu priodol i drethdalwyr yn parhau i fod wrth wraidd ein dull gweithredu. Drwy gydol y gwaith o ddatblygu'r cynigion hyn, rŷn ni wedi parhau i ymrwymo i sicrhau bod amddiffyniadau priodol yn cyd-bwyso unrhyw newidiadau sy'n effeithio ar bwerau Awdurdod Cyllid Cymru. Gyda'i gilydd, mae'r newidiadau a gynigir gan y Bil hwn yn ffurfio rhaglen bwysig o fireinio a gwella, gan sicrhau bod trefniadau trethi datganoledig Cymru yn parhau i fod yn gadarn, yn effeithlon ac yn addas ar gyfer y dyfodol. Dyw'r cynlluniau hyn ddim wedi cael eu datblygu yn gwbl ar wahân. Maen nhw wedi'u seilio ar drafodaethau â threthdalwyr, cynghorwyr proffesiynol a chynrychiolwyr y diwydiant. Y llynedd, bu Llywodraeth Cymru ac Awdurdod Cyllid Cymru yn ymgynghori ar y cyd ar y cynigion ar gyfer newidiadau deddfwriaethol i Ddeddfau trethi Cymru, a liciwn i ddiolch i bawb a gyfrannodd at y gwaith. Cafwyd ymatebion manwl i'r ymgynghoriad gan drethdalwyr, cyrff proffesiynol a chynrychiolwyr y diwydiant. Roedd yr adborth yn gefnogol ar y cyfan ac yn cadarnhau y byddai'r newidiadau arfaethedig yn helpu i sicrhau bod trethi datganoledig yng Nghymru yn parhau i gael eu gweinyddu mewn ffordd effeithiol. Rwy'n edrych ymlaen at weithio gydag Aelodau ar draws y Senedd yn ystod y broses o graffu ar y Bil hwn nawr ac at glywed barn pawb ar sut y gallwn ni barhau i gryfhau trefniadau treth Cymru. Lywydd, felly, mae'n bleser gen i gyflwyno Bil Trethiant (Cymru) i'r Senedd yma.
Official English translation
Llywydd, I'm pleased to introduce the Taxation (Wales) Bill to the Senedd; this package of changes represents the next stage in Wales's tax devolution journey. Nine years ago, this Senedd passed legislation introducing the land transaction tax and the landfill disposals tax. This was supported by the establishment of the Welsh Revenue Authority. The WRA has built a strong track record of delivery and a reputation for fairness based on high-trust co-operative relationships with taxpayers and their advisers. It has gained valuable operational experience in administering devolved taxes and has listened carefully to feedback from taxpayers. Although good tax administration may not always attract headlines, it is fundamental to a well-functioning tax system. I am proud to say that tax devolution in Wales has been successful. Since 2018, the Welsh Revenue Authority has collected more than £2.7 billion in devolved taxes, supporting public services upon which our residents rely. Our programme for government includes a duty to fair tax and commits this Government to ensuring that revenues are raised fairly and simply. As part of this commitment, we will need to ensure that our tax legislation is regularly reviewed and improved and technical changes are made to ensure that taxes are functioning as intended. Effective taxation depends on the quality of the legislation and the administration that underpins it. Taxpayers deserve legislation that is clear and straightforward. Public bodies need powers that are proportionate and workable, and Governments are duty-bound to learn from experiences and to make improvements where they're needed. That is precisely the purpose of the Bill I introduced yesterday. Let me be clear: the Bill does not introduce new taxes, nor does it change tax rates, thresholds, or introduce new reliefs. Instead, the Bill delivers a package of narrowly targeted technical and administrative changes to the three Welsh tax Acts, namely the Land Transaction Tax and Anti-avoidance of Devolved Taxes (Wales) Act 2017, the Landfill Disposals Tax (Wales) Act 2017, and the Tax Collection and Management (Wales) Act 2016. The Bill's purpose is to ensure that our devolved taxes continue to operate fairly and effectively. It is a practical Bill focused on clarifying, strengthening and futureproofing the Welsh devolved tax system. The measures it contains respond to practical and technical issues identified over time by the Welsh Revenue Authority, taxpayers, professional advisers and delivery partners. The Bill includes measures that will support the Welsh Revenue Authority in carrying out its functions more effectively. It will clarify aspects of the WRA's governance arrangements, it will improve the way its tax powers work in practice, it will correct technical issues that have emerged through practical experience, and it will address some of the ambiguity in the application of the devolved taxes so that they continue to operate appropriately and reduce scope for unnecessary disputes or unintended consequences. It will also ensure that Welsh legislation aligns with relevant administrative or legislative developments elsewhere in the UK, where that is appropriate. The Bill will improve the operation of WRA tax inquiries and repayment processes, addressing current gaps in information and inspection powers. It will also enhance transparency whilst protecting tax revenue. The proposals will also benefit Welsh taxpayers. For example, the Bill will clarify the application of late payment interest rules so that taxpayers pay no more than is due. It will also address instances where under the land transaction tax a homeowner adds a partner onto property title deeds, for example after a remortgage. As things stand, they can face higher residential rates. The Bill will prevent that. It's important to note that the Bill also contains provisions to improve information sharing between the WRA and local authorities. These measures will support the development of more accurate tax bases, will strengthen compliance activity, and contribute to wider efforts across Government to make better use of data in delivering public services. In doing so, they will help to ensure that public bodies have access to the information that they need, while maintaining appropriate safeguards for taxpayers. Taxpayer safeguards remain at the heart of our approach. Throughout the development of these proposals, we have remained committed to ensuring that any changes affecting the powers of the Welsh Revenue Authority are balanced by appropriate protections. Taken together, the changes proposed by this Bill represent an important programme of refinement and improvement, ensuring that Wales's devolved tax arrangements remain robust, efficient and fit for the future. The proposals have not been developed in isolation. They have been informed by engagement with taxpayers, professional advisers and representatives of the industry. The Welsh Government and the Welsh Revenue Authority jointly consulted last year on proposals for legislative changes to the Welsh tax Acts, and I'd like to thank everyone who contributed to that work. The consultation received detailed responses from taxpayers, professional bodies and industry representatives. The feedback was broadly supportive and confirmed that the proposed changes would help to ensure the continued effective administration of devolved taxes in Wales. I look forward to working with Members across the Senedd during the scrutiny of the Bill and to hearing everyone's views on how we can continue to strengthen Welsh tax arrangements. Llywydd, it's therefore a pleasure to introduce the Taxation (Wales) Bill to the Senedd.
5. Statement by the Cabinet Minister for Finance: Taxation (Wales) Bill en
Llywydd, consultation is not a numbers game; it can often be about the detail of the consultation. It's not a surprise to me that there were few responses to this consultation that was held last year. The Bill itself, as I explained, is technical in nature. The people who will be particularly interested in this Bill are going to be those people who are representatives of taxpayers, who deal directly with the Welsh Revenue Authority on a number of the aspects that you've outlined. The powers that are being sought in this Bill are proportionate to the issues that have raised themselves as issues, both by the Welsh Revenue Authority itself over the last nine years, and by those people representing taxpayers, where there have been inconsistencies in the system that have existed, where there are obviously grey areas and gaps in the legislation, as they are currently. The powers on access, as you've outlined, are, I believe, proportionate, but that's for committees of this Senedd now to test, and I'm sure that these will be issues that will be tested in scrutiny. Sharing information isn't a bad thing in itself. I think, quite often, that people out there expect public authorities to be sharing information, rather than information needing to be duplicated at all times to different places where they interact with the public sector. But, as you've rightly challenged, it needs to be done in a way that is proportionate to the issues that are at stake and where data and those who hold data are accountable for that. We have tested the proposals in the Bill with the various pieces of legislation that are in place to guard on data protection, and we believe that we have struck the necessary place to provide a system that is more effective for the taxpayer in how they provide information to public authorities and enable a more effective system to be delivered. That's the purpose of this Bill, to make sure that how we administer and operate taxes in Wales is more efficient for the taxpayers and those who collect taxes in Wales. I think that that's a good thing to aim for, and, hopefully, the scrutiny process on this Bill will enable us to, ultimately, pass a piece of legislation that improves on tax administration in Wales.
5. Statement by the Cabinet Minister for Finance: Taxation (Wales) Bill cy
Diolch i'r Aelod am y cwestiynau yna ac am y croeso i hwn fel y Bil cyntaf ar gyfer y Senedd yma. Mae'n ddrwg gyda fi nad yw e'n un o'r rhai mwyaf headline grabbing y gellid bod wedi ei greu, ond mae e'n dangos beth yw gwaith dydd i ddydd Llywodraeth, beth yw gwaith dydd i ddydd ariannu gwasanaethau cyhoeddus yng Nghymru, a sicrhau bod gennym ni'r gyfundrefn fwyaf effeithiol i weithredu ein trethi ni a'n casglu trethi ni, er mwyn gallu ariannu'n gwasanaethau cyhoeddus ni. Dyna yw pwrpas y Bil yma. Fe fydd y craffu manwl rŷch chi wedi sôn amdano, fydd yn dilyn nawr ar ôl y datganiad yma heddiw, yn ffordd o destio rhai o'r materion rŷch chi wedi'u codi yn eich cyfraniad fanna, a'r un mater a godwyd ynghynt hefyd, ar sut mae diogelu'r data yna fydd yn cael ei rannu rhwng awdurdodau perthnasol er mwyn sicrhau bod popeth yn cydymffurfio â'r ddeddfwriaeth sydd eisoes mewn lle i ddiogelu data, ond hefyd o ran yr hyn y byddai'r rhai sy'n rhannu eu manylion personol yn ei ddisgwyl oddi wrth awdurdodau cyhoeddus. Dwi'n credu bod yr hyn sydd yn y Bil yma, o ran sicrhau taw dim ond at ddibenion penodol iawn y gellir rhannu gwybodaeth o'r math yma, fod hynny yn diogelu'r hyn y byddai trethdalwyr yn ei ddisgwyl ohonom ni. Wrth gwrs, un o'r enghreifftiau cynnar yna o rannu data, a phwysigrwydd gwneud hynny o ran y trethi yn ymarferol, fydd wrth gyflwyno'r levy twristiaeth, a'r bartneriaeth yna sydd rhwng Awdurdod Cyllid Cymru ac awdurdodau lleol, neu un awdurdod lleol yn benodol. Felly, bydd honno'n enghraifft o'r defnydd o rannu gwybodaeth. Mae'r rhannu gwybodaeth yma nid dim ond er mwyn hwylustod i'r awdurdodau cyhoeddus eu hunain sydd yn gweinyddu yn y cyd-destun yma, ond bydd e hefyd o fudd i'r trethdalwyr oherwydd byddan nhw wedyn ddim ond yn gorfod cyflwyno gwybodaeth mewn ffordd sy'n fwy effeithiol iddyn nhw hefyd. Felly, mae hynna'n bwysig. Ar rai o'r cwestiynau manwl ynglŷn â'r costau sy'n deillio o rannu gwybodaeth, ac yn y blaen, byddai'n rhaid imi gyfeirio yn fanwl at y regulatory impact assessment sydd wrth fy ochr i fan hyn ar gyfer yr atebion hynny. Mae'n siŵr, wrth graffu ar yr angen i gyllido'r darn yma o ddeddfwriaeth—sydd ddim angen llawer o gyllid, hyd yn oed o sefydlu'r cyfundrefnau newydd yma—y cawn ni fwy o drafodaeth ar hynny yn y pwyllgorau. O ran y gwaith ar sut mae'r Llywodraeth yma neu a ydy'r Llywodraeth wedi gwneud asesiad o faint o osgoi ar dalu treth sy'n digwydd yng Nghymru, dwi ddim yn ymwybodol o waith penodol rŷm ni wedi ei wneud yn ddiweddar ar hynny, a byddai'n rhaid imi edrych ymhellach yn ôl cyn fy nghyfnod i ar unrhyw waith ychwanegol. Ond dwi'n meddwl efallai taw'r neges bwysig yn y darn yma o ddeddfwriaeth yn ei chyfanrwydd yw taw beth rŷm ni'n treial ei roi mewn lle fan hyn yw system sy'n fwy tryloyw i bawb—y rhai sy'n talu'r dreth a'r rhai sy'n casglu'r dreth—sydd yn deg i bawb, fel bod y wybodaeth yn glir ac yn gryno i bawb o beth yw'r anghenion. A phan fo'r system angen her neu ad-dalu, bod y gofynion o gwmpas hynna hefyd yn glir i bawb.
Official English translation
I thank the Member for those questions and for welcoming this as the first Bill in this Senedd. I'm sorry that it isn't the most headline grabbing Bill that could have been introduced, but it does show the day-to-day work of Government, the day-to-day work of funding public services in Wales, and ensuring that we have the most efficient regime in order to collect our taxes and administer our taxes, in order to fund our public services. And that's the purpose of this Bill. The detailed scrutiny that you mentioned, which will now follow today's statement, will be a means of testing some of the issues that you have raised in your contribution, and the same issue that was raised earlier too, in terms of how we safeguard the data that will be shared between relevant authorities in order to ensure that everything complies with the legislation that is already in place in terms of data protection, but also in terms of what those sharing their personal details would expect from public authorities. I believe that what's contained within this Bill, in terms of ensuring that it's only for very specific purposes that that data can be shared, that that does safeguard what taxpayers would expect of us. Of course, one of the early examples in terms of data sharing, and the importance of doing that in relation to taxation on a practical level, will be on the introduction of the tourism levy, and that partnership between the Welsh Revenue Authority and local authorities, or one local authority specifically in this context. So, that will be an early example of the use of information sharing. That information sharing isn't done just for the convenience of the public authorities themselves who administrate in this context, but it will also benefit the taxpayers because they will then only have to present information in a way that is more efficient for them too. So, that's important. On some of the detailed questions on the costs emerging from information sharing, and so on, I would have to refer in detail to the regulatory impact assessment that I have by my side here in order to provide those responses. I'm sure that as we scrutinise the need to fund this Bill—which doesn't need a great deal of funding, even in establishing these new regimes—that we will have more discussion on that in committees. In terms of the work on how this Government or whether this Government has carried out an assessment in terms of how much tax avoidance happens in Wales, I am not aware of specific work that we've done recently on that, and I would have to look further back to before I came into post for any additional work that's been done in that area. But I think that the important message in this piece of legislation as a whole is that what we're seeking to put in place here is a system that is more transparent for everyone—those paying taxes and those collecting taxes—a system that is fair for everyone, so that the information is clear and concise for everyone in terms of the requirements. And when the system needs challenge or repayment, that the requirements of that too are clear for everyone.
5. Statement by the Cabinet Minister for Finance: Taxation (Wales) Bill en
Thank you for those issues. I probably over-egged it in my second sentence in trying to seek that headline in describing this piece of legislation, because I see it primarily as a piece of legislation that reflects on what's happened over the last 10 years, as we've introduced taxation and used devolved taxes in Wales, as we've set up the operation of the Welsh Revenue Authority, and about how, over that period, there has been a recognition of where amendments need to be made in order to operate the tax system more effectively. So, it is about the operation of the current taxes that we have in place. There will be many here who believe, as I do, that there should be further devolution of pieces of taxation powers to this Senedd, but this Bill is not about that. This Bill is about the effective administration of the taxation powers that we do hold. I hope that, whatever our different views in this Chamber would be on devolution of further taxation powers, in the effective administration of the current taxation powers that we have, we can all unite to try and create a system that is as effective as it possibly can be. In terms of any savings and any more effective work that would release more savings into the system, my initial reaction to the question from you is to think that they are minor in significance of money that would be provided by those savings, so I suspect that, in the main, they will be part of strengthening and reinvesting in the means of effective collection of taxes. On unannounced inspections, you are right that the powers that we are seeking in this Bill on unannounced inspections for LDT would merely bring us in line with the powers currently in place in England under HMRC, and also in Scotland, so we are merely replicating those powers.
5. Statement by the Cabinet Minister for Finance: Taxation (Wales) Bill cy
O ran y gwaith gydag alinio prosesau a sicrhau bod yna weithdrefnau sy'n galluogi unrhyw groesgyffwrdd sydd ei angen rhwng HMRC ac Awdurdod Cyllid Cymru, mae'r gwaith yna yn mynd yn ei flaen lle mae angen i hynny ddigwydd. Felly, mae hwnnw'n fater sy'n rhan o waith beunyddiol Awdurdod Cyllid Cymru. O ran y vacant land tax, y dreth ar dir gwag, fel y dywedais i wrth Sam Rowlands, dyw'r Mesur penodol yma ddim yn Fesur sy'n cael ei ragdybio neu ei gynllunio mewn unrhyw ffordd i baratoi ar gyfer trethi newydd i Gymru. Mae gwaith y Bil yma yn sefyll yn ei hawl ei hun, ac yng nghyd-destun y trethi sydd eisoes yn weithredol yng Nghymru, ac yn eu gwneud nhw yn fwy effeithiol. O'n safbwynt ni fel Llywodraeth, yn sicr, rŷn ni'n parhau i ddisgwyl oddi wrth Lywodraeth San Steffan am y cadarnhad terfynol o ddatganoli'r dreth tir gwag, y vacant land tax. Mae'r ymrwymiad yna wedi’i roi gan Lywodraeth San Steffan, ond mae'r cadarnhad terfynol i ddatganoli hwnnw yn dal yn cael ei ddisgwyl gan y Llywodraeth. Rydym ni yn dal yn pwyso ar hynny, ac rydw i wedi gwneud hynny yn fy ymwneud i gyda'r Trysorlys yn ystod y misoedd diwethaf. Mae cyfle gyda nhw, hyd yn oed yn y gyllideb yr wythnos nesaf gan y Canghellor, i fod yn cyhoeddi penderfyniad ar hyn. Cawn weld a fydd hynny yn y gyllideb.
Official English translation
In terms of the work of aligning processes and ensuring that there are systems in place that would allow any overlap required between HMRC and the WRA, that work is progressing where that needs to happen. That is an issue that is part of the day-to-day work of the WRA. In relation to the vacant land tax, as I told Sam Rowlands, this particular Bill is not one that has been planned in any way to prepare for any new taxes for Wales. This Bill exists in its own right in the context of the taxes already in operation in Wales, and making them more effective and efficient. In terms of our view, as a Government, we continue to await final confirmation from the Westminster Government in relation to the devolution of the vacant land tax. That commitment has been made by the Westminster Government, but the final confirmation of devolution is still being awaited. We are still pressing for that, and I've done that in my engagement with the Treasury over the past few months. They have an opportunity, even in next week's budget from the Chancellor, to announce their decision on this. We will wait and see if that is included in the budget.
5. Statement by the Cabinet Minister for Finance: Taxation (Wales) Bill en
The power to withhold payment pending investigation is a power that the WRA has sought in order to enable it to withhold, if it deems that necessary, while an investigation is being conducted. On the point that you have made in terms of ensuring that there is good and effective clarity and guidance as to when and how that power to withhold will be used, I think that that's a very sensible point. I'm sure that it's one that has already been considered. I'll certainly take it away in terms of asking the right questions on your behalf in terms of how a power such as this would then be put into use.
5. Statement by the Cabinet Minister for Finance: Taxation (Wales) Bill en
This is about making the tax system that we have clearer for all concerned, so that the rights that people have in the context of a tax system are made clear, as well as the responsibilities that they have to pay tax in accordance with the law of the land. As I explained earlier, in terms of the unannounced inspections that I think you were referring to, that is a power that's already operational in England and in Scotland under their taxation regimes on LDT, and therefore I think it's a proportionate measure that we're taking. The costs involved in this legislation are minimal, as are the benefits: £2.6 million you referred to, over 10 years; they're not significant amounts of money. The purpose of this legislation is not to raise funding for public services further than currently, but it is to make a tax system that is more rigorous and more operationally effective than it currently is. These kinds of changes in the tax system, in the context of the UK Government, are introduced as part of the orderly rota of UK finance Bills that come every year, every budget, and these types of small changes are put into the annual UK finance Bill. In this context, we've created a Bill that has happened now, and it's the first time, in the first nine years of this Senedd's responsibility for taxation, and therefore it's a collection of various aspects of work that both the WRA and taxpayers themselves, or those people representing taxpayers, have found to be areas that need to be either strengthened, clarified or changed as a result of the practice of taxation in Wales over the past nine years.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax cy
Diolch, Ddirprwy Lywydd. Heddiw, dwi eisiau rhoi diweddariad i'r Aelodau am ein hystyriaethau ynglŷn â system y dreth gyngor, mater sy'n bwysig i aelwydydd, cymunedau a gwasanaethau cyhoeddus ym mhob rhan o Gymru. Mae yna gydnabyddiaeth gyffredinol bod y sail ar gyfer bandiau'r dreth gyngor wedi dyddio a'i bod wedi'i seilio ar brisiadau eiddo yn 2003. Yn Lloegr ac yn yr Alban, mae wedi'i seilio ar brisiadau 1991. Bydd Aelodau'n ymwybodol bod Deddf Cyllid Llywodraeth Leol (Cymru) 2024 wedi sefydlu amserlen ar gyfer cylchoedd ailbrisio'r dreth gyngor, gan gynnal yr un cyntaf yn 2028, ac yna bob pum mlynedd wedi hynny. Heddiw, gallaf i roi'r wybodaeth ddiweddaraf i Aelodau'r Senedd am ein bwriadau o ran ailbrisio, a sut y byddwn ni’n archwilio ffyrdd o wneud y dreth gyngor yn decach. Rwy'n cydnabod y gwaith a wnaed ar y pwnc hwn ar draws y Llywodraeth yma a chynt, ac fel rhan o'r cytundeb cydweithio. Dros yr haf, fel Llywodraeth Cymru sy'n newydd, rŷn ni wedi bod yn gwneud gwaith pellach i ddeall beth fyddai bwrw ymlaen â'r ailbrisio yn ei olygu i aelwydydd ar hyd a lled Cymru. Mae'r gwaith hwnnw wedi tynnu sylw'n glir at faterion a heriau allweddol y mae angen i ni eu hystyried. I fod yn glir, dyw ymrwymiad y Llywodraeth hon i system dreth gyngor tecach ddim wedi newid. Rŷn ni'n cydnabod y dadleuon o blaid diweddaru'r system, fel y gwnaethom y tymor diwethaf. Ac rŷn ni’n cydnabod y farn bod angen inni ystyried sut y gall y dreth gyngor adlewyrchu'r amodau economaidd yng Nghymru ar hyn o bryd yn fwy effeithiol. Ond, fel y gwyddon ni, mae unrhyw ailbrisio yn anochel yn arwain at newid i aelwydydd. Mae hyn yn amlwg o'r ailbrisio diwethaf a ddigwyddodd yng Nghymru yn 2005. Mae'n werth atgoffa ein hunain mai Cymru yw'r unig genedl sydd wedi ailbrisio eiddo ers cyflwyno'r dreth gyngor, ac o ganlyniad, gwyddom na ellir cyflawni ailbrisiadau yn deg heb gefnogi aelwydydd sy'n symud i fyny bandiau. Mae gwaith ymchwil yn amcangyfrif y gallai tua chwarter yr aelwydydd weld eu band treth gyngor yn cynyddu, y gallai chwarter arall weld eu band yn gostwng, ac na fyddai hanner yr aelwydydd yn gweld fawr ddim newid. Pe baem ni am weithredu newid ar y raddfa hon mewn ffordd gyfrifol, dwi'n credu y byddai'n rhaid inni fel Llywodraeth ddarparu cymorth ariannol eto i liniaru'r effeithiau ar aelwydydd a fyddai'n symud i fand treth uwch, fel y gwnaethpwyd yn 2005. Allwn ni ddim cyfiawnhau'r risg o gyflwyno annhegwch newydd i'r system, yn enwedig ar adeg pan mae aelwydydd eisoes yn wynebu pwysau ariannol sylweddol. Y dull y byddem ni'n ei ffafrio fyddai cynnydd graddol dros amser, a fyddai'n helpu aelwydydd i addasu i newidiadau yn eu biliau, yn debyg i'r ffordd rŷn ni'n cefnogi busnesau drwy ailbrisiadau ardrethi annomestig. Byddai'r cymorth y byddwn ni eisiau ei ddarparu i aelwydydd, ochr yn ochr ag ailbrisio'r system dreth, yn golygu cost sylweddol i'r Llywodraeth. Ein hasesiad yw y gallai darparu'r rhyddhad dros dro y byddai'r Llywodraeth yma eisiau ei gyflwyno gostio hyd at £80 miliwn yn y flwyddyn gyntaf ar ôl yr ailbrisio. Mae fy nghydweithwyr i yn y Cabinet a finnau'n cytuno bod hyn yn rhywbeth hynod heriol i'w ariannu o ystyried y rhagolygon cyllidol presennol a'r pwysau rŷn ni'n eu hwynebu ar draws gwasanaethau cyhoeddus.
Official English translation
Thank you, Dirprwy Lywydd. Today, I would like to update Members on our considerations regarding the council tax system, an issue that matters to households, communities and public services in all parts of Wales. There is wide recognition that the basis for council tax bands is out of date and based on property valuations from 2003. In England and Scotland, it is based on 1991 valuations. Members will be aware that the Local Government Finance (Wales) Act 2024 established a schedule of council tax revaluation cycles, the first of which was to take place in 2028, and then every five years henceforth. Today, I can provide an update to Senedd Members on our approach to revaluation, and how we will explore ways to make council tax fairer. I realise that much work was done on this last term across Government, and as part of the co-operation agreement. Over the summer, as a new Welsh Government, we have undertaken further work to understand what proceeding with the revaluation would mean for households across Wales. That work has brought key issues and challenges into sharp focus that we all need to consider. I want to be clear that this Government’s commitment to a fairer council tax system has not changed. We acknowledge the arguments for updating the system, as we did last term. And we recognise the view that we need to explore how council tax can better reflect current economic conditions in Wales. However, as we know, any revaluation exercise inevitably creates change for households. This is evident from the last revaluation that happened in Wales in 2005. It's worth reminding ourselves that Wales is the only nation to have revalued properties since council tax was introduced, and as a result, we know that revaluations cannot be delivered fairly without supporting households that move up the banded system. Research estimates that around a quarter of households could see their council tax band increase, another quarter could see their band decrease, while half of households would see minimal change. If we were to implement a change of this scale responsibly, then I believe that we, as a Government, would have to provide financial support to mitigate the impacts for households that would move up council tax bands, as we did in 2005. We cannot risk introducing new unfairness into the system, particularly at a time when household budgets are already under significant pressures. Our preferred approach would be to phase in increases over time, which would help households to adjust to changes in their bills, similar to the way in which we support businesses through non-domestic rates revaluations. The support that we would want to provide households, alongside a revaluation of the tax system, would come at a substantial cost to Government. Our assessment is that providing the temporary relief this Government would want to put in place could cost up to £80 million in the first year following the revaluation. My Cabinet colleagues and I agree that this is extremely challenging to fund, given the current fiscal forecasts and the pressures that we are facing across public services.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
Our fiscal position requires us to consider carefully the prospect of continuing with the revaluation programme. It requires us to ask not simply whether revaluation is desirable in principle, but whether proceeding represents the best use of the resources available to us at this time. I have to look carefully at the resources available to the Welsh Government to deliver on key priorities for this Senedd term—bringing down waiting lists, supporting families with the cost of childcare, creating jobs and raising educational standards. I’m also mindful of the need to provide funding for the local government settlement, which will protect local taxpayers and the public services they rely on, and that revaluation could happen at a time when changes to the settlement formula are also being implemented. Every pound we spend has an opportunity cost. We are in Government at a time when our public services face significant pressures and when communities across Wales rightly expect us to focus our resources on the priorities that matter most to them. Local authorities, too, require us to consider the risks of implementing a number of big changes at once. Revaluation and funding formula changes at the same time is a lot to ask of our local government partners. For that reason, I believe the right approach is to pause the 2028 revaluation plans and bring forward legislation next month to defer it until the next Senedd term. A revaluation could not be guaranteed to seamlessly be delivered without significant transitional relief, and funding for such relief is not affordable in this difficult public finance climate. I'd like to be clear about what this decision does and does not mean. It is not an abandonment of council tax reform, it is not a retreat from our commitment to fairness, and it is not a suggestion that the current system cannot be improved. It is a pragmatic judgment about timing, affordability and priorities. Rather than committing substantial resources to the revaluation exercise, which requires adequate transitional protections for households, we will want to use this time to explore other ideas, practical targeted measures that can improve the system without requiring investment on the same scale. I remind the Senedd that Wales is the only nation to have added an extra council tax band, band I. One option could be to add further bands for the most expensive properties. I'll be exploring this idea and the legislation it would require over the coming months. I recognise that there will be people who disagree with a further delay. I am sure there are colleagues in the Senedd, partners in local government and organisations across Wales who are eager to see tangible changes to the council tax system at pace. I respect that view, and I understand why some may be disappointed by the prospect of a further deferral. Those same voices, I hope, will understand that this work is complex and important. I don't want to rush into one approach without considering a range of others. To help Members consider the potential impacts, I intend to provide independent analysis by the Institute for Fiscal Studies on the system I would have designed and the cost of the transition schemes I would have opted for. I considered a 12-band system with three additional bands, two at the top and one at the bottom. It will be for the Senedd to decide finally on postponing the revaluation. The Government will bring forward the regulations to postpone until 2032, but a Senedd majority will be needed to pass these regulations, otherwise revaluation will continue for 2028. We want to see progress on a fairer council tax. We want councils to have a stable and sustainable source of revenue, and we want to protect the public services on which people and communities depend—schools, social care, policing and hundreds of other local services that people rely on every day. That stability matters, and any reform must protect it. I will now be turning my attention to what this Government can achieve in this Senedd term. I'll look expediently into the pragmatic steps that can help make council tax fairer without requiring that very substantial financial commitment. Members across the Senedd will undoubtedly have important perspectives to contribute, as will local government and communities across Wales, and I am keen to hear those perspectives. For now, our intention is to defer the 2028 revaluation. We will explore targeted and affordable improvements to the current council tax system, and we will work with partners to identify what more can be achieved by the end of this Senedd term. I will keep Members updated on next steps.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
Thank you for your contribution and for understanding the context in which this decision has been taken. The Government did look seriously at continuing with revaluation in 2028. We have had a very serious set of conversations about the context for 2028 and whether we could proceed with it. As I said in my statement, we very clearly see the merits of updating the valuation that underpins the council tax, but there were two, I'd say, primary issues that led to the decision to defer. You've certainly noted one of those, and that would have been the very significant piece of public funding that would have needed to be found to enable a seamless transition for those families and houses that would have been affected by seeing their council tax band increase through no changes of their own circumstances, merely through the revaluation process that's changed the valuation in the communities in which they happen to live, and those communities could be anywhere in Wales. Therefore, the assessment is that a transition process, even just in its first year, would have cost the public purse £80 million, and the financial pressures on us at this point for public services in Wales are such that that £80 million would have come at a very severe cost for another public service. So, that was the first reason. The other one is something I referred to in the statement. Of course, we are undertaking a piece of work also on the local government formula, the settlement formula, and that piece of work is likely to lead to proposals possibly for change, to also come into operation in April 2028. The coinciding of both these aspects of work would have been a major upheaval for local councils. The upheaval, though, for people who would have faced moving up a band—. We estimate that around 25 per cent of Welsh households would have been moving up a band and 25 per cent roughly would have been moving down, with around 50 per not affected significantly. The Institute for Fiscal Studies have done much of the modelling work for us around this, and in proposing the regulations later on in November that work will be published alongside, and much of that work does go into the detail you asked for on a council-by-council assessment as well. On the single-person discount, the Government has no plans to change the single-person discount. There is no change on that. And then we start to disagree on stuff. We disagree on the need for a referendum. We rehearsed that argument last week on increases to council tax. And then you also questioned the need to look at a higher banding for council tax. That is an issue that I am prepared to look at. We can discuss the detail of that when and if we are able to bring something forward. It is likely to need legislation, and therefore it will be very well scrutinised in this place if it becomes an aspect of work that we do want to introduce, because our commitment to ensuring that we create a fairer range of council tax and fairer range of bands for that purpose continues beyond today, and looking for how we can make council tax and other taxes fairer for people in Wales is something that this Government will continue to commit to developing over the period of this Government's term.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax cy
Diolch am y cyfraniad.
Official English translation
Thank you for that contribution.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
I, too, have words in front of me, and it is the written statement and the update on council tax reform by Rebecca Evans in 2024, when the anticipated 2025 revaluation was delayed by the Government of the time until 2028. I read that written statement and it says very much, closely to, the same as I've been saying in my oral statement today. And one of the main reasons for the delay in 2025 was the exact same reason that I gave in my statement as well, and it was in the context of the broader financial pressures on that Government and the need for an appropriate transition fund. Those were the reasons given by Rebecca Evans in 2024 for a delay from 2025 to 2028. Those financial pressures, I would say, are even more significant today on public services and on the Government. And, as I said in my earlier answer, this Government did seriously consider how we could undertake a revaluation for 2028. We do see the value in that revaluation, in updating our council tax system, in making it a fairer system based on what we would have produced as a 12-band model. But the public finances of today, and of 2028, do not allow us to take those decisions. I don't know whether it's lucky enough to remember the revaluation of 2003-05. I remember the 30 per cent of people who found that they were suddenly facing higher council tax at that time. I remember the very significant letters, by the way, I was getting at the time, not e-mails in inboxes—I go back long enough to be an elected Member getting letters. And they are periods of significant upheaval for households who, for no change in their own circumstances, are facing an increase in council tax bills and council tax banding that is a permanent increase for them because they are permanently in those new bands. So, that £80 million of transition funding in order to help those individuals move over time to a fairer system is not £80 million that this Government can find at this point. We do continue to be a Government and a political party that wants to see council tax fairer for people. We believe that council tax in itself could be reformed beyond just the terms of the valuation, revaluation and the banding. But it will be, now, in this Senedd, for us to look at some of the marginal changes that we can do in the context of the public finances that we find ourselves in. I will genuinely look for new ideas and good ideas across this Chamber as to how we can make those marginal changes to make council tax fairer for people and to meet the needs that it needs to in terms of public service delivery. I recognise that there's a degree of role reversal in what we are conducting this afternoon. We recognise, as I've said, that this is an issue where many people will look to this decision today and criticise or feel regret that it hasn't been able to be pursued at this time by this Government. The moral case is there and it continues to be there, but the context, the financial pressures that we are under do not enable us to move at this time on this piece of work. But continuing to look at how we can make council tax fairer is something the Government is going to commit energy and commitment to.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
Thank you for your contribution, the words that you've said and the general approach you have taken to revaluation. You're an enthusiastic opponent of revaluation. I've come to this more reluctantly, and that explains, maybe, the pace of the decision. It wasn't an easy, straightforward decision for the Government to take, so we took some time over the modelling of that work and how we would look to consider whether we were in a position to fund the transition programme that was needed to ensure a more seamless introduction of revaluation in 2028. That explains the fact that, within a few months into this Government's time, we have come to this decision. But it ultimately is not our decision, it is the decision of this Senedd to decide on delaying and postponing the revaluation for 2028. So, those regulations will come forward and will come with the IFS analysis and the modelling around revaluation, so that everybody can take an informed position in terms of the vote that they will cast on the regulations. You asked a really important point, I think, about what lies in primary legislation that can't be changed by regulations, and that is the five-year pattern of revaluation and how credible that is now. I tend to think that in proposing for 2032, a revaluation could be considered by the next Government. It is possibly one of the Senedd events in each Senedd that a new Government will need to consider—whether it has the circumstances and the mandate to move on revaluation. So, in ensuring that there is adequate time for a new Government to take a decision for 2032—that explains the choice of that date. And it will be maybe for a legislative opportunity at some point later to consider the primary legislation itself. But, as I've said, this Government believes that a revaluation should actually happen at some point in order to enable us to get to a council tax system that could be fairer for people, and it is the circumstances around the public finances in particular that have made us reflect on that position and to take the decision to delay today.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
Yes. Thank you, and thank you for recognising the difficulties that local councils themselves face in their own running of public services, with the public finance settlement currently, and the pressures on their finances in running the services that they're responsible for, but also in terms of those people who—. If this had been progressed in the way that it could have been progressed, some people, obviously, would have benefited from being in lower bands, and others would not have. So, it would've been a churn, and some people would've found that their ability to pay, whichever band they ended up being in, would've been severely challenging in the cost-of-living situation that we're in, hence the need for a transition phase that would've required that significant investment that would've taken money from public services, and local government itself could have seen that happen as well. So, in terms of what we can do next, I mentioned in my statement that we need to look at introducing a higher band so that, for those people who are now in particularly expensive houses and are way beyond where band I starts, there is a case for a higher band to reap some additional revenue from there into the system that will, ultimately, circulate within the system to help others. So, that's something that we will look at. It's something that's currently been looked at both in England and Scotland, and they don't have as high a band as we have currently in band I. So, they have even more motive to introduce higher bands in England and Scotland. But I think that there is a case for us also to be looking at this, but it may well need—well, it will certainly need some form of legislation. It may need primary legislation, which we would need to find time for. But there are many changes, more marginal changes that we could make as well, to make council tax fairer, continuing to ensure that people know that there is a council tax reduction scheme out there, making sure that everybody is eligible and that those in need of that scheme know about it and access it, and that's something that we all, and Government especially, need to put even more effort into.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
That's probably slightly beyond what I expected to commit to this afternoon, so I won't go there, if you don't mind. But I think that's a perfectly reasonable question to be asking in the context of public finances as they are, in terms of how our public sector is configured at this time. We've heard people talk in this place about local health boards, local government. I know that when this Senedd has discussed local government reorganisation and mergers and the creation of bigger councils in the past, there was quite often quite a lot of local resistance to that. Communities quite like having small authorities, even though that might be, in itself, challenging for local authorities, because, obviously, the smaller local authorities, all local authorities, carry significant responsibilities now, and to ensure that they have all the staff that's required to enforce and develop policies properly is a challenge for local authorities, let alone the services that they deliver. So, I won't go there in providing an answer, 'yes' or 'no', to you on that question today. But I think, in the context of everything that we talk about here in terms of public finance, how and what we spend the public's money on, how we collect taxes in order to help fund public services in Wales, the configuration of our public bodies in Wales is an issue that needs to be part of that wider discussion.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
Okay, that's one for you. [Laughter.] I'm sure that Mike Hedges, and others, will want to be part of that debate, actually. It could be quite an interesting one. Just to respond to those points, I'll go back to the main point—the main thrust of why this decision has been taken in the way it has by this Government is that, in needing to make revaluation work as a seamless move towards a new system post 2028, then the need to ensure—as the previous Government actually thought needed to be part of that change—that there was transition funding in place, in the context of the public finances as they are, then that £80 million that we estimate that funding could be necessitated as is not available without significant consequence to this Government.
7. Statement by the Cabinet Minister for Finance: An Update on Council Tax en
The cost for the next financial year to continue the programme would have been around £2.4 million. That's just to progress the revaluation to implementation stage in 2028. On the Institute for Fiscal Studies, the work that they've done to model the changes and the council-by-council impact—that will be published in a time in advance of the regulations and in a time where all Members here will be able to look at it and to consider their views in advance of voting on the regulations.
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Open this sitting on the stage
2. Questions to the Cabinet Minister for Finance cy
Mae'r Gweinidog Cabinet dros Lywodraeth Leol, Tai a Chynllunio yn bwrw ymlaen â'r adolygiad o fformiwla ariannu llywodraeth leol mewn partneriaeth â llywodraeth leol. Mae hyn yn cynnwys gwaith technegol ar y cyd gyda llywodraeth leol ac ymchwil annibynnol drwy Ganolfan Polisi Cyhoeddus Cymru. Mae disgwyl adroddiad yn ystod haf 2027 ar y gwaith yma.
Official English translation
The Cabinet Minister for Local Government, Housing and Planning is proceeding with the local government funding formula review in partnership with local authorities. This includes joint technical work with local government and independent research through the Wales Centre for Public Policy. We're expecting a report during the summer of 2027 on this work.
2. Questions to the Cabinet Minister for Finance cy
Diolch am y cwestiwn pellach yna, ac a gaf i gytuno gyda'r Aelod fod cynghorau sir yng Nghymru yn chwarae rhan allweddol o ran delifro gwasanaethau cyhoeddus ac yn chwarae rôl hanfodol o ran sut bydd y Llywodraeth yma'n gwireddu ein rhaglen lywodraethu ni, ac yn chwarae rhan allweddol, wrth gwrs, yn darparu a chynrychioli'r bobl yn lleol? Ac felly mae ariannu llywodraeth leol, i'w galluogi nhw i fedru cyflawni yn y modd yma, yn bwysig yn hynny o beth. Cwestiwn ynglŷn â'r drafodaeth dwi wedi ei chael gyda'r Gweinidog llywodraeth leol o ran ariannu priodol ar gyfer awdurdodau lleol—ie, yn sicr, mae hynny'n digwydd fel rhan o'r drafodaeth ynglŷn â pharatoi ar gyfer cyllideb flynyddol Cymru. Ac, wythnos ddiwethaf dwi'n meddwl oedd hi, fe wnes i gwrdd, ar y cyd â'r Gweinidog llywodraeth leol, gydag awdurdodau lleol yn finance sub-group yr WLGA wrth i ni drafod y gyllideb flynyddol, ie, a newidiadau a'r drafodaeth ynglŷn â'r fformiwla cyllido hefyd. Felly, mae'r berthynas a'r drafodaeth barhaus yna gyda llywodraeth leol yn bwysig iawn i'r Llywodraeth yma er mwyn cyflawni'r holl waith mae'n cynghorau sir ni yn gyfrifol am ei wneud.
Official English translation
Thank you for that supplementary question, and may I agree with the Member that county councils in Wales play a crucial role in delivering public services and play a crucial role in terms of how this Government will deliver its programme for government, and they play a key role, of course, in providing for and representing people at a local level? So, the funding of local government to allow them to deliver in that way is important in that regard. Now, there was a question on the discussions that I've been having with the Minister for local government in terms of appropriate funding for local authorities—yes, certainly, that is happening as part of the discussions around the preparation of the annual budget for Wales. Last week, I believe, I met, along with the Minister for local government, with local authorities in the WLGA finance sub-group as we discussed the annual budget, and changes and the discussion around the funding formula too. So, that ongoing relationship and discussion with local government is very important to this Government in order to deliver all of the work that our county councils are responsible for doing.
2. Questions to the Cabinet Minister for Finance en
Well, the promotion of Wales overseas is an important aspect of the work that this Government wants to accomplish on behalf of businesses and communities in Wales. The First Minister was drinking a cup of coffee in a corridor as I passed him on the way down to the Chamber earlier, gallivanting nowhere at that point, hot coffee in his hand. Can I just say that, as I answered Rebeca earlier, local authorities provide a really key role in being able to deliver services—education, social services—in all our communities in Wales? They face tough, challenging budgetary situations, as we do as a national Government as well. Taking these decisions at a local level is important. We believe in the decentralisation of decision making in Wales, not setting arbitrary caps on local authorities in terms of the money that they have the ability to spend, as you will want to propose later on this afternoon. They have to take difficult decisions. I represent a constituency west of yours, also rural in nature. I've seen local schools at times have to be closed; I've seen campaigns to save local schools, and those local schools remain open today. These are complex decisions that local communities and their representatives have to take, and should not be trivialised in this place; they need to follow the processes, listen to the voices of those people involved, and take the right decisions. It's not for us to dictate the decisions that should be taken locally.
2. Questions to the Cabinet Minister for Finance en
Thank you. You outline the challenges, of course, with the creation of a funding formula that works for all communities and all local authorities across Wales, as diverse as they are for us in Wales. The review that is now being undertaken, part of it in direct partnership and in collaboration with local government, the technical review, part of that is updating and recalibrating the formula while retaining its established needs-based methodology, and initial work that's currently ongoing is focused on some of the areas you've identified, and they are the main areas of local government delivery, and they are on education and personal social services. As I said in my initial answer, then, this work is ongoing and it is in partnership with local authorities. The final report on this work will be next summer, and that will then decide how we move forward on these issues. I suspect we'll have many conversations around these issues both here, but, importantly, between ourselves as a Government and local government, which are the essential deliverers of so many aspects of our public services and need to be funded according to the need that they need to deliver in a variety of different circumstances.
2. Questions to the Cabinet Minister for Finance cy
Dwi wedi ysgrifennu at y Canghellor ac Ysgrifennydd Ariannol y Trysorlys i ofyn am esemptiad treth ar gyfer Cynnal. Dwi hefyd wedi codi'r mater mewn cyfarfod â Phrif Ysgrifennydd y Trysorlys. Mewn trafodaethau gyda'r Gweinidog Gwladol ar gyfer yr Adran Gwaith a Phensiynau, mae'r Dirprwy Brif Weinidog hefyd wedi gwneud cais i'r taliad gael ei ddiystyru at ddibenion cyfrifo budd-daliadau. Dwi'n croesawu hefyd, yn hyn o beth, sylwadau cadarnhaol Prif Weinidog newydd y Deyrnas Gyfunol o ran edrych ymhellach ar y materion yma.
Official English translation
I have written to the Chancellor and Financial Secretary to the Treasury to request a tax exemption for Cynnal. I've also raised the issue in a meeting with the Chief Secretary to the Treasury. In discussions with the Minister of State in the Department for Work and Pensions, the Deputy First Minister has also requested that the payment be disregarded for benefits calculation purposes. I also welcome the Prime Minister's positive comments to explore these matters further.
2. Questions to the Cabinet Minister for Finance en
Thank you. You outline in your question the real, debilitating impact of poverty on children in our communities, and that's why this Government is seeking to introduce a child poverty payment, direct payment, in the form of our Cynnal scheme. It will be very difficult for us as a Government to introduce that pilot if we are not given those exemptions to benefits by the UK Government, so we are pursuing vigorously a decision by the UK Government to exempt the Cynnal payment from any impact on benefits or taxes. So, we will be pursuing those. And I'm hoping, even in my letter to the UK Government, that this could be something the UK Government provides clarity on in the budget in April. And just to say, in terms of the full devolution of welfare—or progress on the devolution of welfare—then that is certainly something that the First Minister is pursuing as part of the need to see greater devolution. We've seen how the part devolution of welfare for Scotland has enabled a child poverty payment to be made in Scotland, and we are prevented from doing so at this point by some of the restrictions around our devolution settlement. So, we need to change that in order to help us with the work that we want to tackle in terms of child poverty.
2. Questions to the Cabinet Minister for Finance en
The Cynnal payment is no longer just a manifesto commitment, it is a pledge of the Government elected by the people of Wales in May. We've moved on from a manifesto, so keep up. The programme for government, of course, wants to implement and, across our work as a Government, tackle child poverty, for the clear reasons outlined by Becca in her earlier question. So, we need to be progressing this. We think that there are very straightforward measures that the UK Government could take to enable us to introduce this payment. Designing the Cynnal payment pilot, as it will be, continues as part of the work of this Government now, and, as I've already outlined, we'll be continuing discussions with the UK Government to enable us to bring it into action.
2. Questions to the Cabinet Minister for Finance en
I'm not aware of anything that those companies that have regrettably announced job losses have said that it is in any way as a result of the 30 per cent reduction in the business rates available to the leisure and hospitality industries in Wales. They are large companies and they will want to see a workforce that works for them in Wales, that are living in vibrant communities, vibrant city centres here in Cardiff. As part of providing for ensuring that we have the ability for smaller businesses to continue trading in our city centres and in our high streets, then this Government took the decision to reduce those business rates on the hospitality and leisure sectors. So, I hope that you will be supporting that, and any information that you believe I need to provide in order to facilitate your support for the reduction of business rates for our pubs and clubs, then I'd be happy to supply that for you.
2. Questions to the Cabinet Minister for Finance en
This is most definitely not groundhog day for the Menai bridge. I would have said that last week was very much a first day of a big announcement by this Government on the future of a third Menai crossing. In Government, in this Senedd, when you have been here a longer time, you will know that large infrastructure projects take a long time to deliver. Therefore, if you don't start today and start the planning and fund the planning, as this Government is doing for the Menai bridge, then you will not get to that day when there is a third Menai bridge. So, you have to start and then you continue that work. This Government has started the process of designing the work that's needed to improve the resilience of the two bridges in place today and tackle the need for a third Menai crossing. We're committed to doing that work, to funding that work in its development phases, and, hopefully, both you and I will be here long enough to see that third Menai bridge built.
2. Questions to the Cabinet Minister for Finance en
When you've been here 27 years and you've only managed to vote wrong twice, then maybe I can come back to you and see what your record will be like in 27 years. Look, you can trivialise these spokespeople questions if you want to. There are really important questions that could be asked at this point, and you've asked whether it's Dafydd Trystan or myself that turned up to a meeting with you. I am the Minister for finance. There are others in this Government who will also be negotiating with people across this Senedd, both on funding and on legislation. We do not work as a silo in this Government; we work as a team. I don't know how you work within Reform—I'd love an insight into that. But, as a Government, we are committed to working with you and with all parties here to secure Senedd support for a budget that enables public services to be delivered in Wales. It is easy to sit on a Reform bench, or even a Tory bench, and always vote 'no'. The difficult bit of this work, you will find, is to find—[Interruption.] I apologise for dragging another political party into this. I shouldn't have done that, and I was trivialising at that point. You will find, in the work of forging co-operation and ensuring the need to pass budgets and pass legislation in this place—because ultimately that is why we are voted to this place by the people of Wales—that you need to talk across political parties and within political parties, and that's what I'll continue to do.
2. Questions to the Cabinet Minister for Finance cy
Shwmae. Shwmae i'r Siambr gyfan y prynhawn yma. Mi oedd yn bwysig ein bod ni'n dod i gytundeb a bod yna fwyafrif, gobeithio, yn mynd i fod yn y Siambr yma nawr i ganiatáu'r gwariant ar gyfer anghenion dysgu ychwanegol, sydd angen y £60 miliwn yna a fydd yn cael ei bleidleisio arno yn yr wythnosau nesaf yma, fel bod yr arian pwysig yna yn cyrraedd ein hysgolion ni a'n colegau ni er mwyn sicrhau bod y pwysau y mae ein hysgolion ni oddi tano nawr yn cael ei leddfu rhyw gymaint. Dwi'n gwybod eich bod chi'n credu bod angen mwy o arian yn hynny o beth, a dilyniant i'r arian hynny, ac mae hwnna'n rhywbeth bydd y Siambr yma yn ei chyfanrwydd angen ei drafod wrth inni gyflwyno'r gyllideb ar gyfer y flwyddyn nesaf.
Official English translation
Shwmae. Shwmae to the whole Chamber this afternoon. It was important that we came to an agreement and that there will, hopefully, now be a majority in this Chamber to allow that expenditure on additional learning needs, which needs that £60 million that will be voted on in the next few weeks, so that that important funding reaches our schools and colleges in order to ensure that the pressure our schools are currently under is alleviated somewhat. I know that you believe that more funding is required, and some follow-up to that funding in future, and that's something that this Chamber as a whole will need to discuss as we bring forward the budget for next year.
2. Questions to the Cabinet Minister for Finance en
In reference to the particular challenges within the NHS and in financial control within the NHS, this is an issue that I am continuing to have conversations on with the health department and the health Minister. We do need to ensure that we get to a situation where we are confident at the start of a financial year that the NHS is able to live within the means of the budget that it's been allocated for that year. There is considerable inflation within the NHS—in public services in general, but particularly in the NHS—and that is once again because it's in the wider economy and that is a challenge to our NHS budget management. These are issues that we continue to need to grapple with and they have very real life consequences for people out there who receive services from the NHS.
2. Questions to the Cabinet Minister for Finance en
On the current position, in terms of the NHS position within the financial year, I'm happy to write to you further on the exact position as we are in month 6 or 7 of the financial year. It is our commitment as a Government to ensure that there is fair pay for fair work and we are looking to embed that across our work as a Government, whether that is in the wages available to people who undertake contracts for the Welsh public sector, but also in terms of the question that you pose in particular there, the grants available to businesses. So, I'll need to take that particular part of the question away and write to you to confirm on that one what the intention of the economy Minister is on that particular aspect of the question.
2. Questions to the Cabinet Minister for Finance en
Interesting for me, this analysis of who works with who, because if we think about the supplementary budget and if we think of how that supplementary budget will progress its way through the Senedd, then it may well be that it's supported by one or two political parties here. It may be that it's allowed through by another political party, but it may be voted against by another cosy consensus between Reform and the Tories here. Alliances work in different ways in this place. I'm always keen to look to see how we create new alliances. I'm always keen to work with political parties across this Chamber. You know, I love it when the whole Chamber works together as one, but that doesn't seem to be the pattern of the day these days. So, this Government has a programme for government for the next four years. It is a programme of change. A budget will be announced in the next few weeks that will enable that programme to move up a gear. We are a Government of change. That programme is the first programme for government that is not a Labour programme for government. That is change in itself and it will do different things.
2. Questions to the Cabinet Minister for Finance en
Well, that supplementary budget is, of course, much more than just the £60 million of additional funding for additional learning needs. That in itself is important and is an addition to the budget that was discussed here in the summer, and that's an important contribution that will now go directly to schools and colleges in Wales. It won't go as a result of you voting against the supplementary budget, or Reform possibly voting against the supplementary budget. It'll go because Plaid Cymru will vote for that supplementary budget, and Labour will allow that supplementary budget to pass. It is because of our actions that it will go, not your actions. So, that is a contribution that will make a difference to young people in Wales, and just continually voting against delivers nothing.
2. Questions to the Cabinet Minister for Finance cy
Mae'r dreth trafodiadau tir wedi gwneud cyfraniad sylweddol i gyllideb Cymru ers ei chyflwyno yn 2018. Mae wedi sicrhau cyllid gwerth dros £2.5 biliwn ar gyfer gwasanaethau cyhoeddus a seilwaith hanfodol yng Nghymru.
Official English translation
Land transaction tax has made a significant contribution to the Welsh budget since its introduction in 2018. It's provided over £2.5 billion for vital public services and infrastructure in Wales.
2. Questions to the Cabinet Minister for Finance en
The important piece of this jigsaw that you didn't mention there was that the land transaction tax in Wales has a much higher starting threshold than in England. So, the starting threshold in Wales is £225,000. There are around 55 per cent and more of transactions below the £225,000 threshold in Wales, and they pay no land tax at all—55 per cent of all transactions pay no land transaction tax on a primary residence. The starting threshold in England is £125,000. Every house that is worth more than £125,000, and between £125,000 and £225,000, pays land transaction tax or stamp duty in England. They don't in Wales. In Scotland, it's £145,000. So, in telling the story of land transaction tax, tell it all and then the full picture provides the balanced approach that this Government believes can continue. Although, I am willing to consider whether there is a need to think about first-time buyer relief. It's something that I'm interested, possibly, in looking at in this context, but very much the majority of first-time buyers are in that context of being under the threshold of £225,000. In fact, that £225,000 threshold is higher than the average house price in Wales of £215,000.
2. Questions to the Cabinet Minister for Finance en
Thank you for that point. As you know, the Government is interested in being able to bring more empty properties back into active use, especially into residential use. And on the point that you made there about the difficulties that some property developers may be finding in renovating and bringing vacant residential properties back into use because they are caught in the land transaction tax matter, and whether there is a way of providing land transaction relief or refund to incentivise property developers bringing properties back, it's an interesting area that I'm perfectly willing to look at as we look at how we use the land transaction tax to enable bringing empty properties back. I certainly wouldn't want it to be an active disincentive, so I will certainly look at how we can see whether there are ways of doing it in a way that enables bringing empty properties back into use.
2. Questions to the Cabinet Minister for Finance cy
Fel rhan o broses y gyllideb, dwi’n cynnal trafodaethau rheolaidd â holl Weinidogion y Cabinet. Mae penderfyniadau ar gyllid addysg bellach, fel pob penderfyniad cyllidebol, yn cael eu hystyried yn ystod trafodaethau ehangach y Cabinet ar flaenoriaethau.
Official English translation
As part of the budget process, I have regular discussions with all Cabinet Ministers. Decisions on further education funding, like all budget decisions, are considered within wider Cabinet discussions on priorities.
2. Questions to the Cabinet Minister for Finance en
I certainly recognise that additional learning needs is a challenge in terms of funding and provision for colleges, post-16 education, as well as our schools. A lot of the focus of the discussion seems to be on schools, but it is a very real challenge for post-16 education as well. That's why I am pleased that, as part of that deal to secure progress on the supplementary budget, and the £60 million allocation for additional learning needs, £2.5 million of that is to go directly to colleges. But another important aspect of that agreement of the £60 million package is that there is an allocation of funding also for the planning for a long-term sustainable model of funding for education and additional needs, so that, over time, we can get to a place where our local authorities, schools and colleges can plan provision to meet the need and the ability to provide education comprehensively for all. We need to get to a better place than we are currently, and that's why we're committed to working with partners across this Chamber on how we can develop and place this on a sustainable footing into the future.
2. Questions to the Cabinet Minister for Finance cy
Mae’r Llywodraeth hon wedi ymrwymo i fynd i’r afael ag anghydraddoldeb o ran rhywedd a sicrhau bod cydraddoldeb yn cael ei ystyried yn drylwyr ym mhob cam o’r broses o wneud penderfyniadau ar y gyllideb. Ein prif ffocws fel Llywodraeth yw'r canlyniadau rŷn ni’n eu cyflawni, a rhaid inni ystyried yn ofalus ba adnoddau a mecanweithiau sy’n ein helpu ni i wneud gwahaniaeth go iawn i fywydau pobl.
Official English translation
This Government is committed to tackling gender inequality and ensuring that equality is properly considered at every stage of budget decision making. Our primary focus as a Government is on the outcomes we achieve, and we must carefully consider which tools and mechanisms help us to make a real difference in people’s lives.
2. Questions to the Cabinet Minister for Finance en
I'm not sure if I'd pass the cook test, but I'll try and pass the budget test. There's a range of tools and approaches that can help us understand the impacts of spending decisions before we take them, and gender budgeting is certainly one of those tools. But there are constraints in terms of our capacity to embed this approach, especially in the context of this year's first budget. The previous Government undertook gender budgeting pilots that you'll know about, I'm sure, and they provided useful learning. In particular, they highlighted the importance of considering gender early in policy development, rather than adding it later. So, I want to take that learning and consider where it can help us to make better decisions and deliver better outcomes. And if we think of that particularly in the context of where we are developing new programmes—we've spoken of Cynnal, free school swimming and our childcare offer—so that we are using gender budgeting in the context of new policy initiatives, as was highlighted by the gender budgeting pilots—. And, obviously, you've done previous work on gender budgeting, and I'd be happy to discuss this further with you in detail in how we move to embed that across Government as we move through our budgeting processes.
2. Questions to the Cabinet Minister for Finance cy
Mae trethi yn ariannu gwasanaethau cyhoeddus sydd o fudd i bawb. Bydd polisïau treth teg a chymesur yn cefnogi pobl a busnesau yn sir Gaerfyrddin. Bydd ein newidiadau i ailgydbwyso trethi busnes o fudd i gymunedau drwy gefnogi'r stryd fawr a chanol trefi ffyniannus. Mae cynllun gostyngiadau'r dreth gyngor yn cefnogi dros 15,000 o aelwydydd yn sir Gaerfyrddin yn uniongyrchol.
Official English translation
Taxes fund public services that benefit everyone. Fair and proportionate tax policies will support people and businesses in Carmarthenshire. Our changes to rebalance non-domestic rates will benefit communities by supporting vibrant high streets and town centres. The council tax reduction scheme directly supports over 15,000 households in Carmarthenshire.
2. Questions to the Cabinet Minister for Finance en
This is a spoiler alert, but we will be voting against your motion later on. We don't agree that capping local authorities' council tax is a way of enabling local authorities to take the decisions they need to take locally as elected members. The main determinant of council tax is probably still the financial settlement that this Government and this Senedd will pass in February of next year to local authorities. So, us deciding across the Senedd what the scope of that settlement for local authorities will be will be part of the work that we undertake over the next few months. I already know, and I'm already planning at this point, that our settlement as a Welsh Government will be 0.7 per cent down in real terms for next year. It is a very challenging settlement, unless there are changes from the UK Chancellor at the end of October in his budget. So, that is the crucial determinant of council tax: what is the size of the public sector funding available to local authorities. I'm hoping, hearing what you say, that you want to see good local settlements for local authorities, and that you will work constructively with us to enable that to happen, just as Plaid Cymru enabled a good settlement to pass by working with the previous Welsh Government so that local government and the NHS were provided the best possible settlement as part of the budget deal of the last Senedd.
2. Questions to the Cabinet Minister for Finance cy
Mae gwydnwch rhag newid hinsawdd yn elfen bwysig o waith y Llywodraeth yma i amddiffyn cymunedau a gwella canlyniadau. Mi fydd y gyllideb ddrafft ar gyfer 2027-28 yn cefnogi blaenoriaethau’r rhaglen lywodraethu sydd yn ymwneud â'r hinsawdd a natur. Mae hyn yn cynnwys Cymru Sero Net, ochr yn ochr â mesurau ehangach y Llywodraeth i helpu Cymru i addasu i hinsawdd sy'n newid.
Official English translation
Climate resilience is an important element of this Government’s work to protect communities and improve outcomes. The draft budget for 2027-28 will support programme for government priorities on climate and nature, including Net Zero Wales, alongside wider Government measures to help Wales adapt to a changing climate.
2. Questions to the Cabinet Minister for Finance en
Your question highlights probably the very real concerns that we all as elected Members in the Senedd have as to how we face the extreme weather challenges that will face us this winter, as have faced us in the summer past. You know that this Government takes its response and its planning for future events of this nature seriously. The First Minister has convened a summit on climate resilience to happen next week, I think, to bring stakeholders together to continue the discussion on how we prepare and make ourselves more resilient for extreme weather scenarios, because happen they will. On the issue around how we budget for that, in my initial answer I told you of how we are looking to embed climate change mitigation measures across our budget. You've asked for a specific identification of an extreme weather resilience fund, if I've understood you correctly, across and in each budget allocation and portfolio. That is something that I will certainly think further on and discuss with you and with others in this Chamber. These are ever-changing but very present issues that we need to address as a Government, but also as a Senedd, in how we plan our budgets into the future and how we plan our work.
6. Reform UK Debate: Local referendums on council tax rises cy
Cynnig yn ffurfiol.
Official English translation
Formally moved.
6. Reform UK Debate: Local referendums on council tax rises cy
Lywydd, dwi'n croesawu'r cyfle i gyfrannu at y ddadl yma ar y cynnig i gyflwyno trefniadau refferenda treth gyngor fel sydd i'w gweld yn Lloegr. Nid yw Llywodraeth Cymru yn credu y dylid gosod targedau cenedlaethol penodedig a mympwyol ar godiadau yn y dreth gyngor, sy'n anwybyddu amgylchiadau lleol a chyd-destunau economaidd amrywiol. Dylai penderfyniadau blynyddol am drethi lleol gael eu gwneud gan gynghorwyr a etholwyd yn lleol sy'n atebol i'r cymunedau y maen nhw yn eu gwasanaethu. Wrth gwrs, dylai'r penderfyniadau lleol hynny ystyried y pwysau costau byw sy'n wynebu aelwydydd, yn union fel y bydd ein penderfyniadau ni ar lefel genedlaethol yn blaenoriaethu camau i leihau'r pwysau ariannol sy'n wynebu teuluoedd. Ond mae'r dreth gyngor yn helpu i ariannu ysgolion, gwasanaethau gofal cymdeithasol, tai, plismona a'r holl wasanaethau lleol y mae ein cymunedau'n dibynnu arnyn nhw bob dydd. Mae yna lot o gymariaethau wedi'u gwneud yn ystod y ddadl yma, a lot ohonyn nhw gyda Lloegr, ond mae yna un gymhariaeth sydd heb ei gwneud. Er y polisi refferendwm yn Lloegr, mae treth gyngor band D cyfartalog cynghorau Cymru £109 yn is na Lloegr. Felly, mae trethdalwyr Cymru ar gyfartaledd yn talu llai o dreth gyngor na threthdalwyr treth gyngor yn Lloegr o hyd, hyd yn oed gyda'r polisi sydd yn weithredol yn Lloegr. Fe fyddai refferenda lleol o dan y cynnig yma yn golygu costau a biwrocratiaeth sylweddol, a hynny'n hollol ddiangen ar adeg pan fyddai'n well cyfeirio adnoddau tuag at ddiogelu gwasanaethau rheng flaen. Dim ond un refferendwm lleol sydd wedi'i gynnal o dan y polisi yma yn Lloegr, yn Bedfordshire, gyda'r comisiynydd heddlu, ac amcangyfrifwyd i hwnnw gostio tua £600,000 i'r trethdalwr.
Official English translation
Llywydd, I welcome this opportunity to contribute to this debate on the proposal for a regime of council tax referenda similar to those seen in England. Plaid Cymru does not believe that the Welsh Government should impose arbitrary and fixed national targets on council tax rises, which disregard local circumstances and volatile and diverse economic contexts. Annual decisions about local taxes should be made by locally elected councillors who are accountable to the communities that they serve. Of course, local decisions need to consider the cost-of-living pressures facing households, just as our national decisions will prioritise actions to reduce the financial pressures facing families. But council tax helps to fund schools, social care services, housing services, policing and all of the local services that our communities rely on every day. There are many comparisons that have been made during this debate, many of them with England, but there is one comparison that hasn't been made. Despite the referendum policy in England, average band D council tax in Welsh councils is £109 less than in England. So, taxpayers in Wales pay less council tax than council tax payers in England, and they continue to do so even though they have that policy in place in England. Local referenda under this motion would come with significant costs and bureaucracy needlessly, at a time when resources are better directed at protecting front-line services. Only one local referendum has ever been called under this policy in England, in Bedfordshire, with the police and crime commissioner, and it was estimated that that referendum cost around £600,000 to taxpayers.
6. Reform UK Debate: Local referendums on council tax rises cy
Wrth gwrs, dros y blynyddoedd diwethaf, mae sawl awdurdod lleol yn Lloegr wedi cael caniatâd gan Whitehall i godi trethi ar lefel sydd y tu hwnt i'r terfynau refferendwm o 5 y cant. Mae yna sawl cyfeiriad at hyn wedi bod eisoes. Er enghraifft, un o'r eithriadau i'r caniatâd hynny gafodd ei roi oedd ym mis Chwefror eleni i Gyngor Sir Caerwrangon, cyngor o dan arweiniad Reform, lle cawson nhw'r caniatâd i godi'r dreth gyngor 9 y cant, sydd yn uwch nag unrhyw gynnydd a welwyd yng Nghymru eleni. Y cynnydd cyfartalog yng Nghymru eleni ar lefel cynghorau oedd 4.8 y cant, sef y cynnydd cyfartalog isaf ers 2022. Roedd y cynnydd a ddewiswyd gan y gwahanol gynghorau mor isel â 3.6 y cant yn ambell un, sy'n dangos atebolrwydd am eu penderfyniadau ar lefel leol. Gan weithio gyda'r Llywodraeth flaenorol, wrth basio'r gyllideb derfynol eleni, fe helpodd Plaid Cymru sicrhau setliad cryfach ar gyfer y gyllideb llywodraeth leol, gan ddarparu cynnydd o £282 miliwn yn y setliad terfynol, a sicrhau bod pob cyngor yn derbyn cynnydd o fwy na 4 y cant, drwy gefnogi'r funding floor. Fe helpodd y buddsoddiad ychwanegol hwnnw i leddfu pwysau uniongyrchol ar gynghorau a chyfraniad gynnig llai yn y dreth gyngor ar hyd Cymru. Lywydd, fel yr ydw i wedi sôn nifer o weithiau yn y Siambr yma, mae Llywodraeth Cymru yn wynebu sefyllfa gyllidebol anhygoel o anodd yn y flwyddyn ariannol nesaf, lle bydd gostyngiad mewn termau real yn ein cyllidebau adnoddau a chyfalaf. Ac mae'r awdurdodau lleol hefyd yn wynebu pwysau cynyddol ar wariant ar draws y gwasanaethau y maen nhw'n gyfrifol amdanyn nhw. Dyna pam y bydd ein cyllideb ddrafft ni fis nesaf eisiau gweld blaenoriaethu gwasanaethau cyhoeddus rheng flaen. Rwy'n gobeithio y byddwn ni'n gallu gweithio ar draws pleidiau yn y Siambr yma i sicrhau setliad digonol ar gyfer llywodraeth leol. Oherwydd nid cap mympwyol sydd angen, wedi ei orfodi ar awdurdodau lleol gan Weinidog cyllid yn eistedd ym Mharc Cathays, nid hynny fydd yn diogelu trethdalwyr lleol a'r gwasanaethau y maen nhw'n dibynnu arnyn nhw. Cyllid digonol ar gyfer gwasanaethau cyhoeddus sydd ei angen, i setliad Llywodraeth Cymru gan Drysorlys y Deyrnas Gyfunol yn y lle cyntaf, ac yna yn y setliad i awdurdodau lleol wedi'i basio gan y Senedd yma. Y ddau setliad ariannol yma fydd y dylanwad mwyaf ar lefel y dreth gyngor y flwyddyn nesaf yn ein cynghorau sir ni. Lywydd, mae'r ddadl yma hefyd wedi tynnu sylw at egwyddor ehangach. Rydyn ni yn y Llywodraeth yma'n credu mewn ymreolaeth ac atebolrwydd, boed hynny i awdurdodau lleol neu i'r Senedd yma a Llywodraeth Cymru. Dyna pam mae Plaid Cymru wedi dadlau ers tro bod angen mwy o bwerau cyllidol ar Gymru, gan gynnwys mewn perthynas â threthiant. Gyda setliadau cyllideb cryfach a phwerau hyblyg i godi refeniw, fe fyddwn ni mewn sefyllfa well i lunio ein cyllidebau, cryfhau gwasanaethau cyhoeddus a darparu cyllid mwy cynaliadwy ar gyfer llywodraeth leol dros y tymor hir. Yn union fel rydyn ni'n gwrthwynebu'r terfynau cyllidol mympwyol a orfodwyd arnon ni gan San Steffan, rydyn ni hefyd yn gwrthwynebu gosod cyfyngiadau mympwyol ar awdurdodau lleol pan fyddan nhw'n gosod eu cyllidebau eu hunain a'u lefelau treth gyngor eu hunain. Dylai Aelodau wrthod y cynnig hwn er mwyn diogelu atebolrwydd democrataidd awdurdodau lleol, a gweithio gyda ni i ddarparu'r gwasanaethau ansawdd uchel y mae pobl ledled Cymru yn eu haeddu. Mae unrhyw un sy'n credu mewn datganoli grym o'r canol i'r lleol yn mynd i wrthwynebu rhwymo dwylo'r rhai sy'n penderfynu ar lefel leol, y rheini sydd wedi eu hethol yn ddemocrataidd yn lleol. Rwy'n annog Canghellor y Deyrnas Unedig unwaith eto i ddefnyddio cyllideb yr hydref hwn i ddiogelu gwasanaethau cyhoeddus rhag chwyddiant uwch i'n galluogi ni i ddarparu'r cyllid ychwanegol sydd ei angen ar wasanaethau lleol. Yna, ein cyfrifoldeb ni oll yn y Siambr hon fydd gweithio gyda'n gilydd i sicrhau cytundeb ar setliad sy'n rhoi'r adnoddau a'r sicrwydd sydd eu hangen ar awdurdodau lleol i ddarparu'r gwasanaethau hanfodol hynny y maen nhw'n gyfrifol amdanyn nhw.
Official English translation
Of course, over the past few years, several local authorities in England have been granted permission by Whitehall to exceed referendum limits, that limit of 5 per cent. There are several references already made to this. For example, one of the exceptions granted was in February of this year for Reform-led Worcestershire County Council, and they received permission to increase council tax by 9 per cent, which is higher than any increase seen across Wales this year. The average increase in Wales this year at council level was 4.8 per cent, which is the lowest average increase since 2022. The increase chosen by councils was as low as 3.6 per cent in some cases, demonstrating accountability for their own choices on that local level. Working with the previous Government in passing the final budget for this year, Plaid Cymru helped to secure a stronger budget settlement for local government, delivering an increase of £282 million in the final settlement, ensuring that every council receives an increase of more than 4 per cent, by supporting the funding floor. This additional investment helped to ease immediate pressures on councils and contributed to lower council tax increases the length and breadth of Wales. Llywydd, as I have mentioned several times in this Siambr, the Welsh Government faces an incredibly difficult budgetary position in the next financial year, with a real-terms decrease in both our resource and capital budgets. And local authorities, too, face increasing spending pressures across the services that they are responsible for. That's why our draft budget next month will prioritise front-line public services, and I hope that we can work across parties in this Senedd to deliver an adequate settlement for local government. Because it's not an arbitrary cap that we need, dictated to local authorities by a finance Minister sitting in Cathays Park. That's not what will protect local taxpayers and the services that they rely upon. It's sufficient funding for public services that we need, for the Welsh Government settlement from the UK Treasury in the first instance, and then in that settlement to local authorities passed on by this Senedd. Both settlements will be the greatest influence on the level of council tax levied next year by our county councils. Llywydd, this debate also highlights a wider principle. We believe, as a Government, in autonomy and accountability, be it for local authorities or for us as a Senedd and for us as a Welsh Government. That's why Plaid Cymru has long argued that Wales needs greater fiscal powers, including in relation to taxation. With stronger budget settlements and flexible revenue-raising powers, we would be better placed to shape our budgets, strengthen public services and provide more sustainable funding for local government over the longer term. Just as we oppose the arbitrary fiscal limits imposed on us by Westminster, we also oppose placing arbitrary restrictions on local authorities when they set their own budgets and their own council tax levels. Members should reject this motion to preserve the democratic accountability of local authorities and work with us to deliver the high-quality services that people across Wales deserve. Anyone who believes in devolution of power from the centre to the local level is going to oppose tying the hands of those who decide on that local level, those who are elected democratically on that local level. I urge the UK Chancellor once again to use this upcoming autumn budget to protect public services from higher inflation, enabling us to provide the additional funding that local services need. It will then be the responsibility of all of us in this Chamber to work together constructively to agree a settlement that gives local government the resources and certainty it needs to continue delivering the vital services that it is responsible for.
8
Open this sitting on the stage
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Lywydd, dwi'n cyflwyno'r cynnig gerbron y Senedd y prynhawn yma, ac mae'r ddadl hon yn ymwneud ag un egwyddor syml: sicrhau bod gan Gymru'r cyllid, yr hyblygrwydd cyllidol a'r buddsoddiad sydd eu hangen i ddelifro ar gyfer cymunedau ledled y wlad, i bob postcode. Rwy'n falch bod y cynnig hwn wedi'i gyflwyno ar y cyd â Llafur Cymru, sy'n adlewyrchu ymrwymiad cyffredin i sicrhau setliad cyllido teg i Gymru ac yn adeiladu ar waith y Llywodraeth flaenorol yn y maes hwn. Mae'r materion hyn yn effeithio ar gymunedau ledled Cymru, ac rwy'n gobeithio gall fod consensws eang ar draws y Senedd y prynhawn yma ar bwysigrwydd y materion yma.
Official English translation
Llywydd, I move the motion before the Senedd this afternoon, and this debate is about one simple principle: ensuring that Wales has the funding, the fiscal flexibility and the investment required to deliver for communities across the country, for every postcode. I am pleased that this motion has been jointly tabled with Welsh Labour, which reflects a shared commitment to securing a fair funding settlement for Wales and builds on the work of the previous Government in this area. These issues affect communities across Wales, and I hope that there can be broad consensus across the Senedd this afternoon on the importance of these issues.
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Mae'r cynnig yn galw ar Lywodraethau Cymru a'r Deyrnas Gyfunol i weithio gyda'n gilydd mewn tri maes allweddol: i wella hyblygrwydd cyllidol Cymru, i adolygu gweithrediad fformiwla Barnett ac i ailddatgan cefnogaeth i ymrwymiad Llywodraeth y Deyrnas Gyfunol i fuddsoddi £14 biliwn mewn seilwaith rheilffyrdd ledled Cymru. Mae'r rhain yn gamau ymarferol, cyraeddadwy a all helpu i gryfhau ein heconomi, cefnogi gwasanaethau cyhoeddus a gwella bywydau pobl. Nid ydynt yn geisiadau am driniaeth arbennig. Maent yn geisiadau am ddull cydweithredol a fydd yn arwain at ganlyniadau gwell i Gymru. Hyblygrwydd cyllidol, felly. Mae'r Prif Weinidog wedi bod yn glir bod Llywodraeth Cymru yn wynebu rhagolygon ariannol eithriadol o heriol, gyda disgwyl i gyllideb y flwyddyn nesaf fod yn is mewn termau real nag eleni. Tra bo'r galw ar ein gwasanaethau cyhoeddus, ein seilwaith a'n heconomi yn parhau i gynyddu, nid yw'r cyllid sydd ar gael inni yn cadw cam â hyn. Mae'r rhagolygon cyfredol yn dangos gostyngiad termau real yn ein cyllideb adnodd o 0.7 y cant yn ystod 2027-28, tra bod disgwyl i'r gyllideb gyfalaf fod tua 9 y cant yn is mewn termau real erbyn diwedd cyfnod yr adolygiad gwariant yn 2030. Gallai'r her hon ddod yn fwy fyth unwaith y bydd goblygiadau cyhoeddiadau diweddar Llywodraeth y Deyrnas Gyfunol ar wariant amddiffyn yn gliriach i ni. Yn yr amgylchiadau hyn, mae'n bwysicach nag erioed bod gan Gymru gyllid teg, y pwerau cyllidol a'r hyblygrwydd sydd eu hangen i gwrdd â heriau, buddsoddi yn ein blaenoriaethau a chyflawni ar gyfer cymunedau. Mae sicrhau bod gan Gymru'r offer i reoli ei chyllid ei hun yn effeithiol yn hanfodol er mwyn i benderfyniadau am Gymru adlewyrchu anghenion a blaenoriaethau Cymru. Gall cyhoeddiadau yn ystod y flwyddyn gan Lywodraeth y Deyrnas Gyfunol, newidiadau i broffiliau gwariant ac amgylchiadau economaidd annisgwyl oll gael effaith sylweddol ar ein gwaith o gynllunio'r gyllideb. Ond o dan y trefniadau presennol, dim ond mynediad cyfyngedig i'n cronfa wrth gefn sydd gan Lywodraeth Cymru a hyblygrwydd cyllidol mwy cyfyngedig na rhannau eraill o'r Deyrnas Gyfunol. Bu'n rhaid i Lywodraeth Cymru ofyn am hepgoriadau dros dro i gyfyngiadau'r cronfa wrth gefn mewn tair o'r pedair blynedd ddiwethaf. Nid yw hynny'n ffordd effeithiol o reoli cyllid cyhoeddus. Ni ddylem orfod gofyn i Lywodraeth y Deyrnas Gyfunol bob blwyddyn am yr hyblygrwydd sydd eisoes ar gael mewn rhannau eraill o'r Deyrnas Unedig. Felly, rwy'n ceisio rhoi'r trefniadau dros dro hyn, y bu'n rhaid dibynnu arnynt dro ar ôl tro, ar sail barhaol, gan ddarparu mwy o sicrwydd a chefnogi gwaith effeithiol o gynllunio'r gyllideb. Mae dileu'r cyfyngiadau ar gronfa wrth gefn Cymru yn gam cyntaf ymarferol. Byddai hynny'n caniatáu i Gymru wneud gwell defnydd o adnoddau sydd eisoes yn perthyn i Gymru ac yn dod â'n trefniadau yn nes at y rhai sydd ar gael yn yr Alban. Heb fynediad llawn at gronfa wrth gefn, dim ond £200 miliwn y byddaf i'n gallu ei thynnu i lawr, sef ymhell o dan 1 y cant o gyllideb Cymru, er mwyn helpu i ymdrin â phwysau y gwyddom amdanynt eisoes a phwysau sy'n dod i'r amlwg. Mae hyn yn cynnwys effeithiau cyhoeddiadau ariannu Llywodraeth y Deyrnas Gyfunol o fewn blwyddyn, megis y toriadau disgwyliedig i'n setliad cyfalaf o ganlyniad i gynnydd mewn gwariant ar amddiffyn. Wrth gwrs, mae'r materion yn ymestyn y tu hwnt i weithrediad cronfa wrth gefn Cymru yn unig. Mae'r achos dros fwy o hyblygrwydd yn tynnu sylw at gwestiwn ehangach ynghylch a yw trefniadau cyllidol Cymru yn parhau i fod yn addas. Dyna pam yr wyf yn cynnig adolygiad o fframwaith cyllidol Cymru. Mae degawd wedi mynd heibio ers i'r fframwaith cyllidol gael ei gytuno yn 2016. Mae Cymru wedi newid. Mae'r amgylchedd economaidd wedi newid. Mae'r dirwedd gyfansoddiadol wedi newid. Mae'n rhesymol gofyn a yw'r trefniadau presennol yn parhau i fod yn addas i'r diben ac a ydynt yn rhoi'r gwytnwch a'r hyblygrwydd sydd eu hangen i Gymru i gwrdd â heriau yn y dyfodol. Fel rhan o'r adolygiad, byddaf eisiau mynd i'r afael ag amrywiaeth o faterion, gan gynnwys gweithrediad a hyblygrwydd cronfa wrth gefn Cymru a digonolrwydd pwerau benthyca Cymru—a chofiwch fod gan awdurdodau lleol fwy o hyblygrwydd cyllidol nag sydd gan Lywodraeth Cymru. Hefyd mae angen edrych ar effeithiolrwydd y trefniadau cyllido presennol o ran adlewyrchu angen cymharol a'r achos dros ddatganoli treth pellach. Mae Llywodraeth Cymru yn bwriadu ceisio datganoli pwerau pellach dros dreth incwm, ynghyd â datganoli'r doll teithwyr awyr. Byddwn hefyd yn ceisio cymhwysedd deddfwriaethol ar wahân ar gyfer treth newydd ar dir gwag. Mae'r materion hyn yn mynd y tu hwnt i'r cynnig sydd gerbron y Senedd heddiw, ond gallaf roi'r ymrwymiad hwn ichi heddiw: ni fyddaf yn cytuno, fel Gweinidog cyllid, i fframwaith cyllidol diwygiedig oni bai ei fod yn gynnig da i Gymru, a bydd barn y Senedd yma ar hynny yn ystyriaeth bwysig wrth i’r adolygiad fynd yn ei flaen.
Official English translation
The motion calls on the Welsh and UK Governments to work together in three key areas: enhancing Wales's fiscal flexibilities, to review the operation of the Barnett formula and to reaffirm support for the UK Government's commitment to invest £14 billion in rail infrastructure across Wales. These are practical, achievable steps that can help to strengthen our economy, support public services and improve people's lives. They are not asks for special treatment. They are asks for a collaborative approach to lead to better outcomes for Wales. Fiscal flexibilities, therefore. The First Minister has been clear that the Welsh Government faces an exceptionally challenging financial outlook, with next year's budget expected to be lower in real terms than this year's. While demands on our public services, our infrastructure and economy continue to grow, the funding available to us is not keeping pace. Current forecasts point to a real-terms reduction in our resource budget of 0.7 per cent in 2027-28, while our capital budget is expected to be around 9 per cent lower in real terms by the end of the spending review period in 2030. That challenge may become even greater once the implications of recent announcements by the UK Government on defence spending become clearer. In these circumstances, it's more important than ever that Wales has fair funding and the fiscal powers and flexibility needed to meet emerging challenges, invest in our priorities and deliver for communities across Wales. Ensuring that Wales has the tools to manage its own finances effectively is essential if decisions about Wales are to reflect Wales's needs and priorities. In-year announcements from the UK Government, changing spending profiles and unforeseen economic circumstances can all have substantial impacts on our budget planning. But under current arrangements, the Welsh Government only has limited access to its own reserve and more restricted fiscal flexibilities than other parts of the UK. The Welsh Government has had to seek temporary waivers to Wales reserve restrictions in three of the last four years. That is not an effective way to manage public finances. We should not have to ask the UK Government each year for flexibilities that are already available elsewhere in the UK. I'm therefore seeking to place these temporary arrangements, which we have had to rely on repeatedly, on a permanent footing, providing greater certainty and supporting effective budget planning. Removing restrictions on the Wales reserve is a practical first step. It would allow Wales to make better use of resources that already belong to Wales and bring our arrangements closer to those available in Scotland. Without full access to the Wales reserve, I will only be able to draw down £200 million, which is well under 1 per cent of the Wales budget, to assist with known and emerging pressures. This includes the impacts of funding announcements by the UK Government in year, such as the expected cuts in our capital settlement because of increased defence spending. Of course, these issues extend beyond the operation of the Wales reserve alone. The case for greater flexibility highlights a broader question about whether Wales's fiscal arrangements remain fit for purpose. That's why I have proposed a review of the Wales fiscal framework. A decade has passed since the fiscal framework was agreed in 2016. Wales has changed. The economic environment has changed. The constitutional landscape has changed. It's reasonable to ask whether the current arrangements remain fit for purpose and whether they provide Wales with the resilience and flexibility required to meet future challenges. As part of that review, I will be looking to address a variety of issues, including the operation and flexibility of the Wales reserve and the adequacy of Wales's borrowing powers—and remember that local authorities have greater flexibilities than the Welsh Government has. We also need to look at the effectiveness of current funding arrangements in reflecting relative need and the case for further tax devolution. The Welsh Government plans to seek further income tax devolution and the devolution of air passenger duty. We will also be separately seeking competence for a new vacant land tax. These issues go beyond the motion before the Senedd today, but I can also give you this commitment today: I will not agree, as finance Minister, a revised fiscal framework unless it is a good deal for Wales, and the opinion of the Senedd on this will be an important consideration as the review proceeds.
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I want to be clear: recent UK Government funding settlements have provided additional resources for Wales, and we recognise that. Next year’s settlement, however, is negative in real terms. However, any increased funding does not automatically mean fair funding, nor does it necessarily provide sufficient resources to meet growing demands or address where there has been historical underinvestment by the UK Government. The pressures facing public services remain significant. The NHS continues to face increasing demand, local authorities and other public services continue to face substantial financial pressures, while persistent inflation continues to erode the real-terms value of public spending. These pressures reinforce the need to consider whether current funding arrangements adequately reflect Wales's needs. My priority is to improve the operation of the Barnett formula while also exploring, over the medium term, whether a more needs-based approach could better support communities across Wales. All systems can be improved. I do not underestimate the challenge. The Treasury's instinct will often be to resist changes to established funding arrangements or the transfer of additional fiscal powers. However, we must move beyond viewing these issues as a zero-sum game, and we must believe that the spirit of the new Prime Minister to support more devolution from Whitehall will reach even the darkest corners of the UK Treasury in the coming weeks and months. I also realise that there will be a variety of views across this Chamber on the need for reforming or replacing the Barnett formula. In the interest of building consensus, that is why this motion concentrates only on its operation. This is about ensuring that the system commands confidence, operates transparently and enables funding decisions to be clearly understood by governments and citizens alike. As an illustration, we have limited visibility over how comparability percentages are determined and how changes at fiscal events are assessed by the Treasury. These decisions directly affect our funding. There should be a structured and timely process through which we can challenge or seek clarification. We have already secured an action through the Finance: Interministerial Standing Committee to make practical improvements to the operation of the Barnett formula, increase transparency around funding decisions and remove constraints that limit our ability to invest in and improve Welsh public services. This work was started in the interministerial group by my predecessor, and new Ministers in our meeting in September agreed that this work must deliver tangible progress before we meet again in the new year. Finally for this opening introduction, Llywydd, the third part of the motion. For decades, Wales has experienced significant underinvestment in rail infrastructure. That is why we welcomed the UK Government's recommitment to invest £14 billion in Welsh rail infrastructure through the joint UK-Wales rail board vision, ‘Today, Tomorrow, Together’. I would also like to acknowledge the amount of work undertaken by the previous Welsh Government in its development. However, commitments alone do not improve connectivity. What matters now is delivery. At present, only £302 million has been allocated for the enhancement of non-devolved rail infrastructure in Wales during the current spending review period. That represents little more than 1 per cent of Network Rail spending in England and Wales over the same period. The consequences of this long-term underinvestment extend beyond the rail network itself. Insufficient rail capacity and connectivity have limited travel choices for many communities, contributing to greater reliance on road transport, increased congestion on key routes such as the M4, as we heard earlier this afternoon, and higher transport-related emissions. Strengthening rail infrastructure is, therefore, not simply about improving train services; it is about creating a more resilient, sustainable and integrated transport network for Wales as a whole. Delivering the £14 billion commitment is an important step towards addressing decades of underinvestment in Wales's rail infrastructure and the legitimate concerns felt across Wales that we did not benefit from HS2 consequentials, despite the scale of rail investment elsewhere in the UK. Not receiving a consequential for HS2 has meant that we have not been able to choose to use that additional funding that would have come into our budget to invest in our own priorities for rail, roads or wider transport infrastructure. We now need agreement on a delivery programme and a clear timeline for the £14 billion rail investment commitment. The UK Government must substantially increase current levels of investment to deliver the Burns and other stations, including in north Wales, that were committed to at the UK spending review in 2025. Doing so would improve connectivity, support economic growth and enable the development of future projects for the next spending review period, while beginning to address the historic underfunding of rail in Wales. We therefore want to see an additional £1 billion of the £14 billion commitment invested during the current spending review period, up to 2029-30. Better connectivity links people to jobs, businesses to markets and communities to opportunities. Every part of Wales deserves the benefits that modern transport infrastructure can bring. If we can build consensus on what Wales needs, we'll be in a stronger position to secure the investment, powers and funding arrangements necessary to ensure that Wales's interests and needs are fully reflected in the UK autumn budget and future UK Government decisions. I look forward, this afternoon, to hearing the views of Members across the Chamber. I hope that there will be clarity on what unites us on fiscal reform. We will always be stronger in making our case for Wales when we speak with one voice. Diolch yn fawr.
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Diolch, Lywydd. To Reform, and to Cai Parry-Jones, may I start by saying that this Senedd most definitely should be discussing how we are funded? You tabled a debate last week on blankets of the past. I tabled one this week on the financing of Wales. Reform, you may be counting views and shares on social media. I'm counting the money made available and used in Wales. So, this motion is clear: it supports flexible access to reserves to enable better financial planning and control by Government, and that will definitely benefit the people of Wales. Secondly, it supports better operation and transparency on the decisions that finance Wales via Barnett. These decisions should not be hidden behind a Treasury curtain. And it calls for rail investment in Wales to finally be realised, and those Burns stations, so often mentioned in this Senedd, to be built.
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Felly, diolch i Lafur am gyd-gyflwyno’r cynnig a'r galwadau yma, a hefyd, yn y cyfraniad, am amlinellu'r ymrwymiad sydd gyda chi i ddiwygiad pellach ar gyllido Cymru. Fe amlinellodd Sera Evans hefyd yr angen am hyblygrwydd i'r mynediad yna ar gyfer ein cronfeydd wrth gefn ni, sydd mor bwysig i ni.
Official English translation
So, I'd like to thank Labour for jointly tabling the motion and also for their contribution outlining the commitment that you have to further reform of the fiscal framework in Wales. Sera Evans also outlined the need for flexibility in that access to our reserves, which is so important to us.
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Paul Marr, we share the same constituents, and I can tell you that they are interested in Wales getting its fair share of funding, and especially on rail investment in Pembrokeshire and into Aberystwyth. That's not ideology; that's better rail services.
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Yes.
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This motion today is not about the fiscal review; it's about the operation of Barnett. It is different to the call—. It was seeking to create a consensus, a commonsense consensus, across this Chamber that you've decided that you don't sign up to. It was good to hear the commonsense approach by the Conservatives, speaking of appropriate powers for appropriate use, and that's what good politics means. [Interruption.] Look at the detail of what's in front of you. Others have suggested and said quite clearly that we need to not lay on our laurels and remain just on what this motion today is seeking to create for the Senedd, but to be bolder—Jane Dodds's words; Carrie Harper also made that call. I would say also, Mike Hedges, I will use that line when I next speak to the UK Treasury, when you reminded us all that school governing bodies and local authorities have more fiscal powers and borrowing powers than this Senedd itself has, on access to reserves in particular. You said the UK Treasury should not be micromanaging the finances of Wales, and that's a very important thing for us to get them to understand. So, we've created a consensus here today. It doesn't include Reform. I won't lose any sleep over that. But if I can finish by just saying that these proposals in this motion are rooted in partnership, fairness and a shared cross-party ambition to improve outcomes for the people of Wales. And if that wasn't worth an hour of this Senedd's time, then I don't know what could be.
30
Open this sitting on the stage
2. Questions to the Cabinet Minister for Finance en
There are lessons for Government and political parties from the supplementary budget vote. In a Senedd with no overall majority, co-operation and responsible decision making are essential as we look forward to future budgets. The Government wants to engage constructively across the Senedd to ensure that budgets are a blend, as I see it, of three component parts: funding for the delivery of effective public services, funding for priorities brought into Government by Plaid Cymru, and funding for other priorities from other political parties. In order to produce a blended budget that can command a Senedd majority, my only plea across the Chamber is that we have a common understanding also of the financial envelope available to us. We are facing the most challenging budget settlement of this decade in 2027-28, with a real-terms reduction of around 0.7 per cent in resource funding, and even greater reductions in capital budgets. The financial envelope for next year's budget is especially tight, and will require a particular discipline for this Government and for all of us who want to play a constructive part in passing Wales's annual budget.
2. Questions to the Cabinet Minister for Finance en
I'm not sure whether I will always welcome a question from Andrew R.T. Davies as Cabinet Minister for Finance, but today in particular, it was particularly useful for me to see that your question, constructed in this manner, allowed me to outline some of my thoughts on how I see the future of budget discussions. And, yes, we are keen, as the First Minister has said, to have discussions with all political parties. We are very conscious of the fact that we are a minority Government. If that supplementary budget vote was useful in anything, it was useful in reminding us, as a Government, that we need to command a majority to pass any budget in this place. So, I look to all Members here to consider our roles in a different way perhaps to how we have considered our roles and participation in budgets of the past. In fact, the Welsh Conservatives have an advantage over all other political parties here. You're almost the continuity party in this Senedd, because you are an opposition party and you've played—[Interruption.] You're consistently an opposition party; I do not prejudge the future. But Reform is a new party in this Senedd, Labour is a party in opposition for the first time and Plaid Cymru is a party in Government, and there are new roles for all of us to play in that. But I hope that as we continue discussions over the next few weeks and months—. And those discussions are happening, and I want now to use pace and to think about how we can have those discussions across political parties and individuals in this Chamber to bring ideas into this big melting pot that is the annual budget. So, I hope that we can do that in a more meaningful way than we have done coming out of the election before the summer. And I think that's a challenge that all of us have to rise to, and me, in particular, as the finance Minister.
2. Questions to the Cabinet Minister for Finance en
I take no red lines into this budgetary process, genuinely, in terms of the work that I'm doing within Government and the need, as I outlined in my initial statement, for this Government to be disciplined in how our Ministers are looking at their portfolios. A 0.7 per cent real-terms decrease in the budget is a real challenge for the Ministers in the exercise of their portfolios. So, I take no red lines into my discussions across all budget areas. But, obviously, there are manifesto commitments and ideas that this party, Plaid Cymru, brings into Government, and I am sure, as we discuss with Members and parties across the Chamber, that we can have a frank discussion about what is possible and where our common priorities lie. So, no red lines, but an open door for discussions.
2. Questions to the Cabinet Minister for Finance en
Yes, I certainly agree that, in looking at budgets, we need not just to look at those spending lines as they are drafted on a spreadsheet, but we need to look properly at where our outcomes can be improved, and you've listed some of the areas where we need, as Wales, to be doing better, and, certainly, as a Government, we're committed to doing so. So, looking at outcomes, effectiveness and value for money all go hand in hand as we seek, as a new Government in place, in advance of making our own budget and putting it together, as we are looking at efficiencies within Government and outcomes of where we want to prioritise our funding. That piece of work is being undertaken as a budgetary process, but especially in light of our appointment of a Minister with exact responsibility for effectiveness and outcomes of Government action. And that lasting change, of course, that you spoke of, does require something that is more agile and meaningful than annual budgets—so, a commitment to looking to a multi-year budget, but, of course, within the spending review of the allocations to us as a Government. Looking to a multi-year budget is something that I'm looking to propose as part of our budget processes here.
2. Questions to the Cabinet Minister for Finance en
I don't think we have different priorities, Mike; I think we share that priority of needing to spend more on additional learning needs. We were prepared and we voted for that in the supplementary budget. I don't think these are competing positions. We need to strike that note and work on the balances of where we can land this together. So, let's not polarise this in question No. 1 to me at the start of a budget process. Let's see if we can work together on this.
2. Questions to the Cabinet Minister for Finance cy
Mae cronfa buddsoddi twristiaeth Cymru, a mentrau eraill, yn buddsoddi bron i £60 miliwn yn uniongyrchol yng Nghymru. Mae llawer o fusnesau'n derbyn rhyddhad ardrethi annomestig neu byddant yn elwa o'r lluosydd is estynedig o 2027 ymlaen, fel y cyhoeddais i ddoe. Rŷn ni hefyd yn ymgynghori ar newidiadau posib i'r trothwy 182 diwrnod ar gyfer eiddo hunanarlwyo.
Official English translation
The Wales tourism investment fund, and other initiatives, invest almost £60 million directly in Wales. Many businesses receive non-domestic rates relief or they will benefit from the expanded lower multiplier from 2027 onwards, as I announced yesterday. We are also consulting on potential changes to the 182-day threshold for self-catering properties.
2. Questions to the Cabinet Minister for Finance cy
Wel, mae e wastad wedi bod yn rhywbeth sydd wedi bod yn bwnc trafod yn y Senedd yma, a chyda Plaid Cymru hefyd, lle mae'r pwynt yna lle mae'r cydbwysedd yn y farchnad dai yn gorwedd rhwng y stoc dai sydd ar gael i ni ar gyfer pobl i fyw ynddyn nhw, a hefyd y stoc dai sydd yna ar gyfer y sector twristiaeth a hunanarlwyo, ac mae cael y balans yna, fel nad yw un yn effeithio'n negyddol ar y llall, cael y balans yna yn gywir, yn bwysig. A dyna beth ŷn ni yn gobeithio ei gyflawni drwy ymgynghori ar hyn. Dwi eisoes wedi trafod gyda rhai sy'n cynrychioli'r sector hunanarlwyo, sydd, yn amlwg iawn, yn credu bod y balans yn gorwedd yn is na'r 152 o ddiwrnodau yna sydd yn yr ymgynghoriad, ac rŷch chi hefyd, mae'n bosib, yn teimlo yr un fath. Dwi'n agored i gael y drafodaeth yna. Dwi'n synhwyro y bydd yr ymateb i'r ymgynghoriad yn dangos bod y sector ei hun, a'r bobl sydd yn y sector, yn meddwl bod eisiau mynd yn ddyfnach na'r hyn sydd yn yr ymgynghoriad, ond fe fydd y Llywodraeth eisiau taro'r balans cywir. Dydyn ni ddim eisiau creu bwgan arall i ni ein hunain drwy osod y trothwy yma'n rhy isel. Ond rwyf i'n awyddus ein bod ni'n cyrraedd sefyllfa lle mae'r gyfundrefn yma sydd yn effeithio ar ein sector tai ni, ond hefyd ar ein sector hunanarlwyo, ein sector twristiaeth ni, yn cyrraedd pwynt lle mae'n gallu bod yn ganlyniad parhaol wedyn i'r pwnc yma. Felly, dwi'n agored iawn i drafod gyda chi hefyd ynglŷn â sut y mae cael y canlyniad i'r ymgynghoriad yma i gyrraedd rhywle sydd yn rhywbeth sydd yn cynnal mwyafrif y gefnogaeth yn y lle yma.
Official English translation
Well, it's always been something that's been a topic of debate in this Senedd, and within Plaid Cymru too, in terms of what is that point where you're striking the balance in the housing market between the housing stock available for people to live in and also the housing stock available for the tourism and self-catering sector, and striking that balance, so that one doesn't have a negative impact on the other, getting that balance right, is important. And that is what we hope to deliver through consulting on this. I've already had discussions with representatives of the self-catering sector, who, clearly, do believe that the balance is at a lower point than the 152 days in the consultation, and you perhaps feel the same. Now, I am open to having that discussion. I sense that the response to the consultation will demonstrate that the sector itself, and those within the sector, do believe that we need to go deeper than what's contained within the consultation, but the Government does want to strike the right balance. We don't want to create further problems for ourselves by setting this threshold too low. But I am eager that we reach a position where this system that impacts our housing sector, but also our self-catering and tourism sectors, reaches a point where it can be a permanent solution in this area. So, I'm open to discuss this with you too in terms of how we get the outcome to this consultation to reach a point that has majority support in this place.
2. Questions to the Cabinet Minister for Finance en
A year-round tourism economy is something that I definitely want to see, both for the constituency that we both represent, but also for Wales generally. I think we've seen significant progress on that over the last few years, but there is more to do still on that. We have our investment priorities, and looking at how we can attract tourists for an extended period of the year is part of the criteria in how we invest in that. Also, we need to make sure that the business rates system that we have, and other taxation aspects, are also ensuring that those businesses that support the hospitality sector are able to be all year round. There's no point having businesses that are only open for a particular part of the year. We need businesses that are open all year long, so that they can provide the opportunity for tourists to benefit, but also, what benefits tourists also benefits the communities they serve. So, I'm particularly hopeful that the positive sign that the Government was able to give yesterday for such a wide array of businesses that do support the tourism sector, of a 30 per cent reduction in business rates from next April, is a positive sign for the tourism sector generally that this Government backs it.
2. Questions to the Cabinet Minister for Finance en
There are two aspects to this; I've spoken, actually, twice on the politics show on both of them. One was the in-year challenges that the Welsh Government inherited as a result of the budget that was laid last year and passed last year. The pressures in particular from within the NHS are considerable, and they were considerably more than I expected them to be. They are a challenge within the financial year that I'm trying to manage as we speak. But also, in a world where—and we've heard it again today—the inflationary pressures in our wider society and economy mean that the budget next year, at the moment, is 0.7 per cent less in real terms, that is very challenging in the context of the wage inflation that is within our public services as well. So, those were two aspects that were particularly challenging for public services in Wales.
2. Questions to the Cabinet Minister for Finance en
It was fully costed, but the job of work that we have to do as a Government, and I've alluded to it already, is the discipline now that Ministers have to face in allocating within their priorities how they marry the priorities that a governing party brings into Government with the day-to-day running of public services. I spoke of the three components of the budget as I see them: the effective running of public services in Wales and how we fund those in the budget settlement that we have as a Senedd and Government; and then the priorities that the Plaid Cymru Government, as voted for by the people of Wales, bring into that; as well as then, of course, the ability that other political parties will want to influence that budget as a third component part of it. So, putting all of that together in one blended melting pot is what we're doing as we speak. Doing that at a time of more financial flexibility would have made it an easier and more constructive piece of work to undertake. It is going to be a challenging piece of work. As I've hopefully set out today, I hope that we're all up for that challenge as a Senedd together.
2. Questions to the Cabinet Minister for Finance en
I accept that there is a higher ask of those businesses across the business rates portfolio that have the higher rateable values. The bit you didn't mention in your question was those up to 20,000 businesses that will benefit from lower taxes as a result of the announcement yesterday and the support for retail premises as well. I think the premise of your question is, though, that this is not just about how we allocate the public funding that's available to us, but how we also use our taxation system to ensure, yes, that we're using it to fund public services, because taxation is what enables public services to be run, but also how we get that balance right in terms of supporting our economy. All of those together, again, are part of the considerations when we need to think about where we strike this balance.
2. Questions to the Cabinet Minister for Finance cy
Dwi'n meddwl bod y cwestiwn yna yn un gwirioneddol ddiddorol, ac yn wirioneddol yn gwestiwn sydd yn ein hwynebu ni fel Llywodraeth, sy'n Llywodraeth am y tro cyntaf. Rydym ni wedi etifeddu cyllidebau sydd wedi cael eu cynllunio gan bleidiau eraill a Llywodraethau o'n blaenau ni, er ein bod ni fel plaid hefyd wedi cefnogi agweddau o'r cyllidebau hynny. Mae'n wir i ddweud ein bod ni fel Llywodraeth a Gweinidogion y Llywodraeth yma yn edrych ar draws holl gyllidebau'r Llywodraeth ar hyn o bryd i weld beth sydd yn gweithio'n effeithiol, beth sydd angen ei newid, a lle mae toriadau. Gyda llaw, byddwch chi'n dod i wybod hyn, dwi ddim yn Weinidog cyllid sy'n ofni defnyddio'r gair 'toriadau'. Mewn rhai llefydd, mae toriadau yn beth da. Mewn llefydd eraill, dydyn nhw ddim. Ond dwi ddim yn mynd i osgoi defnyddio'r term.
Official English translation
I think that that question is a truly interesting one, and is truly a question that faces us as a Government, who are in Government for the first time. We've inherited budgets that have been planned by other parties and previous Governments, although we as a party did support aspects of those budgets. It is true to say that we as a Government and Ministers within that Government are looking across all the Government budgets at present to see what's working effectively, what needs to change, and where there are cuts. By the way, you'll get to know this, I'm not a Minister for finance who is afraid to use the word 'cuts'. In some places, cuts are a good thing. In other places, they're not. But I'm not going to avoid using that term.
2. Questions to the Cabinet Minister for Finance en
I'm not going to be one of those Ministers who avoids the term 'cuts' at all times and tries to say 'efficiencies' or other ways of describing it. So, all of these factors are in the melting pot, as I see it, at this time. That overview of the whole budget of Government is currently a disciplined process that the Ministers are looking at, so that we reprioritise spend in terms of some of the priorities that Plaid Cymru has brought in to Government, but also that we look to see which budget areas are properly delivering the outcomes that another Member spoke of earlier. Because we really have to look at where the outcomes are best achieved, rather than just looking at headings on budget lines at all times.
2. Questions to the Cabinet Minister for Finance cy
Dwi yn fodlon ymrwymo i edrych ar y mater yma. Dyw e ddim yn fater dwi'n hollol gyfarwydd ag e. Dwi yn gweld y gwerth sydd yna a dwi'n ymwybodol iawn bod fy nghyd-Weinidogion yn ymwybodol iawn bod impact unrhyw newidiadau cyllid angen cael eu hasesu ac angen mynd drwy'r lens yna rŷch chi'n sôn amdano. Dŷn ni ddim eisiau gweld taw'r bobl fwyaf difreintiedig neu anghenus fydd yn dioddef o unrhyw newidiadau i'r gyllideb. Felly, mae hwnna'n rhywbeth rŷn ni'n mynd i eisiau iddo fod yn ffactor allweddol yn sut rŷn ni'n gwneud yr asesiadau cyllidol yma. Ac felly, mi wnaf i edrych yn benodol ar y grŵp rŷch chi newydd sôn amdano i weld sut gallwn ni fod yn dwyn y drafodaeth yn ei blaen gyda'r arbenigwyr yna.
Official English translation
I am willing to commit to look at this issue. It's not an issue that I'm completely familiar with. I do see the value in it and I am aware that my fellow Ministers are very aware that the impact of any budgetary changes need to be assessed and need to be viewed through that lens you're talking about. We don't want to see the most disadvantaged or needy people suffering as a result of any budgetary changes. So, that's something we want to regard as a key factor in terms of how we undertake these budgetary assessments. So, I'll look specifically at the group that you just mentioned to see how we can progress that discussion with those experts.
2. Questions to the Cabinet Minister for Finance en
Well, I think, by doing the job of work that I outlined just earlier. We're a new Government, we have a new lens and, hopefully, a new energy into wanting to make the best use of the Welsh pound and to make sure that we are outcomes led in how we take our financial decisions. I recognise that we have a particular opportunity to do that in our first annual budget, and therefore there is considerable impetus from me, and from my Cabinet colleague on effectiveness of Government delivery, to be looking at how we ensure that the budgets that we will put to this Senedd are as outcomes focused as they can be and, as I've spoken of already, that they're not just lines on a spreadsheet, but they're actually meaningful in terms of what they will be delivering.
2. Questions to the Cabinet Minister for Finance en
Well, it concerns me too that that level of debt was allowed to accrue without the Government being able to monitor it in an effective way, and I'm aware from cases in the past, not particularly this one, that this can happen. Government is always about investing properly in economic development and in running public services. Sometimes, that investment needs to happen in a context where there is risk, and Ministers need to balance that risk. But making sure that we have the right financial controls in place in a risky situation or not—. We need to make sure that those financial control measures are in place, because £700,000 is, as you could describe, or I could describe, money that would have been better spent elsewhere.
2. Questions to the Cabinet Minister for Finance cy
Diolch. O fewn Llywodraeth Cymru, mae'r cyfrifoldeb am lywodraeth leol yn dod o dan fy nghydweithiwr, y Gweinidog Cabinet dros Lywodraeth Leol, Tai a Chynllunio. Gan weithio gyda llywodraeth leol, rŷn ni wedi cyflawni ein hymrwymiad 100-diwrnod i gomisiynu adolygiad o fformiwla gyllido llywodraeth leol.
Official English translation
Thank you. Within the Welsh Government, responsibility for local government lies with my colleague the Cabinet Minister for Local Government, Housing and Planning. Working with local government, we have delivered our 100-day commitment to commission a review of the local government funding formula.
2. Questions to the Cabinet Minister for Finance en
Yes, I can certainly give you the complete confidence that local government is a key partner in the work that we're doing on this review through its existing mechanisms, so that we do look properly at all aspects of work that need to feature in a review of this nature. And that does reflect on, and needs to reflect on, the patterns of need that we have throughout our communities and also the costs of delivering services across communities as well. So, it is a joint piece of work. I see it as a joint piece of work with local government. We want to be, as you were previously, a Government in partnership—working in partnership with local government. They are key to the delivery of public services in Wales. They're not key to it, they do it—they do the delivery of public services in Wales, and we need to make sure that they are funded in a way that enables that work to happen as effectively as possible in every community in Wales.
2. Questions to the Cabinet Minister for Finance en
I agree 100 per cent with the need for us to be able to present a budget and to pass a budget in this place in as early as possible a way in order to provide that security and that lead-in time for planning and effective delivery of services by local authorities. We have a UK Government budget that happens at the end of October, and we are hoping to be able to pass a Senedd budget in the early part of January or February next year. I'm not going to miss the opportunity to say that the best way of giving certainty to local authorities, NHS, public services, public bodies, businesses in Wales, is that we can find a way of ensuring that a budget in this place has a majority to enable it to pass. Anything that stifles that process over the next few weeks and months will ultimately end in local authorities in Wales not having the ability to pass their own budgets in time.
2. Questions to the Cabinet Minister for Finance cy
Ie, dwi'n meddwl bod y pwyntiau yna'n sicr o werth i awdurdodau lleol wrth iddyn nhw feddwl amboutu ariannu'r cynlluniau yna a'r gwasnaethau yna y maen nhw'n eu delifro. Ac felly, y lens yna rŷn ni'n moyn ei roi ar siẁd mae'r setliad ar gyfer llywodraeth leol yn gweithio'n fwy effeithiol, ond hefyd siẁd mae'r model o ariannu yn fwy cynhwysfawr yn gweithio hefyd. Mae rhoi'r rhyddid yna i lywodraeth leol i fedru penderfynu ar eu blaenoriaethau nhw eu hunain yn bart o ddatganoli o fewn Cymru, wrth gwrs, ac felly, os ydyn ni'n gallu cyflawni yr hyn rŷn ni eisiau trwy rymuso llywodraeth leol i fod yn arwain ar siẁd mae datblygu a chyflenwi gwasanaethau yn eu hardaloedd nhw, yna, fel Llywodraeth, byddwn ni'n falch iawn i glywed am syniadau sy'n dod wrth lywodraeth leol, ac yn dod o'r Senedd yma, fel y gallwn ni sicrhau bod y pecyn mwyaf effeithiol o ariannu yn cyrraedd llywodraeth leol, achos, fel dwi wedi dweud eisoes, nhw sy'n delifro gwasanaethau, ac maen nhw angen yr arfau hynny a'r pwerau hynny i fedru gwneud hynny'n effeithiol.
Official English translation
Well, yes, I think those points are valuable for local authorities as they think about funding those programmes and services that they deliver. And it's that lens that we want to apply as to how the local government settlement could work more effectively, but also how the funding model could work more comprehensively too. Providing that freedom to local government to decide on their own priorities is part of devolution within Wales of course, and, therefore, if we can deliver what we want to achieve by empowering local government to lead on how to develop and deliver services in their own areas, then we as a Government would be very pleased to hear of any ideas coming from local government, and coming from this Senedd, of course, so that we can ensure that the most effective package of funding is provided to local government, because, as I've said already, they deliver services, and they need those tools and those powers to do that effectively.
2. Questions to the Cabinet Minister for Finance cy
Dwi'n ymwybodol o effeithiau helaeth y tanau gwyllt ar ffermwyr a commoners hefyd. Os yn briodol, byddwn yn caniatáu eithriadau i ofynion cynllunio er mwyn helpu ffermwyr sydd wedi eu heffeithio. Mae ystyriaeth bellach yn cael ei roi hefyd i sut i gefnogi gwydnwch y sector yn wyneb pwysau sylweddol yr haf hwn.
Official English translation
I'm aware of the extensive impacts of the wildfires on commoners and farmers. And if appropriate, we will allow exemptions to planning conditions in order to help farmers that have been affected. Further consideration is given to how to support the resilience of the sector given the extensive pressures of this summer.
2. Questions to the Cabinet Minister for Finance en
Thank you for the supplementary question, and I'm sure it must have been a terrible summer for those farmers and commoners in your area and elsewhere in Wales where they faced these fires with very real consequences on how they did their farming and livestock farming. I have had discussions, and they continue, with the rural resilience Minister about the financial implications of both the direct fires and also such a difficult summer in terms of harvest and growing that the drought led to here in Wales. So, we'll continue those discussions. I'll discuss that particular letter with him as well. But also, to the point you make about the longer term implications of what we face as a country, as a world, in terms of the different challenges that have really struck home this year, I think, in a way, that we've seen bits of it in the past, over the past few years where we've had some intense periods of heat and wildfire consequences, but we've never seen it in such a sustained way over such a long period of time. And so, this asks questions of our sustainable farming scheme. Of course, we've made the long-term financial commitment, multi-year, of £1 billion on that scheme, but we do need to look at the content of that scheme, going forward, in order to meet some of the challenges that were discussed yesterday, actually, in this Senedd over how we manage our uplands and mountain areas in particular.
2. Questions to the Cabinet Minister for Finance en
Yes, I agree, and I'm sure this summer has brought it home to the Minister, just as much as it has to farmers, how we manage land. Farmers knew this already, by the way. They were telling Ministers, I think, over the years about how some of the changes in support schemes are having effects on our uplands. But this year has brought to the forefront how there is a very direct relationship with how we farm our uplands and what happens in those uplands, both in terms of wildlife and regeneration of wildlife, but also in how we manage the uplands both in order to prevent floods downstream and also to ensure that we have adequate measures for limiting wildfires in these excessive heat situations that we have. We are facing and we are likely to have to plan for these events to become possibly even annual events. We know that our climate is changing, and we as a Government and as a Senedd need to own up to that fact and to take the measures that we need to in order to make Wales resilient in the nature of the climate change that we are seeing in our society.
2. Questions to the Cabinet Minister for Finance cy
Diolch am y cwestiwn a diolch am ein hatgoffa ni o'r golygfeydd ofnadwy yna welon ni yn Pantside yn eich ardal chi, gyda'r tanau yna yn y gymuned yna yn dangos bod eiddo a thai hefyd mewn peryg mewn sefyllfaoedd o’r math yma. Mae’r Gweinidog llywodraeth leol eisoes wedi cytuno i agor yr emergency financial assistance scheme. Felly, mae hwnna ar gael ar gyfer yr awdurdodau lleol a’r awdurdodau tân i asesu maint y gwariant ychwanegol yr oedden nhw wedi gorfod ei wynebu yn ystod yr haf yma, a sut y gallan nhw, os oes angen, ddefnyddio’r cynllun yna. Rŷn ni’n derbyn bod y gwaith maen nhw wedi'i wneud fel diffoddwyr tân, fel awdurdodau lleol, fel cymunedau lleol, yn arbennig o bwysig yn ein cymdeithas ni, ac rŷn ni'n ddiolchgar am y gwaith yna yn ystod yr haf. Felly, rŷn ni'n barod i edrych gyda'r awdurdodau perthnasol ar sut mae'n bosib ariannu unrhyw arian sydd ei angen arnyn nhw. Byddwn ni'n cydweithio gyda nhw ar hynny.
Official English translation
Thank you for that question and thank you for reminding us of those terrible scenes that we saw in Pantside in your own constituency, with the fires affecting that community showing that property and homes are also at risk in scenarios such as this. The Minister for local government has already agreed to open the emergency financial assistance scheme and, therefore, that is available for local authorities and fire authorities in order to assess the scale of additional expenditure that they faced during this summer, and how they can, if necessary, use that programme. We accept that the work that they did as firefighters and local authorities and local communities is extremely important for our communities, and we are grateful for that work done over the summer. Therefore, we are willing to look, along with the appropriate authorities, as to the funding of any moneys that they require. We will be working with them on that.
2. Questions to the Cabinet Minister for Finance cy
Ddoe, roeddwn i'n falch iawn i gyhoeddi cymorth ardrethi annomestig newydd i fusnesau lletygarwch a hamdden, sydd wrth galon ein huchelgais i adfywio canol trefi. O 1 Ebrill 2027 ymlaen, bydd busnesau cymwys yn elwa ar ostyngiad parhaol o 30 y cant yn eu biliau ardrethi.
Official English translation
Yesterday, I was pleased to announce new non-domestic rates support for hospitality and leisure businesses, which are central to our ambition to regenerate town centres. From 1 April 2027 onwards, eligible businesses will benefit from a permanent 30 per cent reduction in their rates bills.
2. Questions to the Cabinet Minister for Finance cy
Diolch. Ces i gic gan y Dirprwy Lywydd, dwi'n meddwl, i gadw fy atebion i'n fyrrach. Felly, fe wnaf i ymdrechu i wneud hynny. Ni wnaf i ddim ail-ddweud dim gwnes i ei ddweud ddoe yn Senedd, pan oeddem ni'n trafod y gostyngiad treth yma o 30 y cant. Dwi'n gobeithio ei fod e'n cyflawni dau beth. Dwi'n gobeithio ei fod e'n gwneud gwahaniaeth realistig i'r busnesau yma a fydd yn elwa o hyn, ac y byddan nhw yn teimlo ei fod e'n eu galluogi nhw i gynllunio'n well ar gyfer y dyfodol oherwydd bod hyn yn barhaol. Ond hefyd gobeithio ei fod e'n cyflawni neges o gefnogaeth oddi wrth y Llywodraeth yma, a'r Senedd yma os bydd pawb yn cytuno i'r rheoliadau, ein bod ni o ddifri yn moyn gweld y sector yma yn cael ei chefnogi ac yn elwa ac yn datblygu yn y cymunedau yna ar draws Cymru sy'n mynd i elwa—nid dim ond y rhai arfordirol yn eich etholaeth chi a fi, ond hefyd y canol trefi yna, y swbwrbia yna hefyd, yn ein dinasoedd ni ac yn ein cymunedau ôl-lofaol ni.
Official English translation
Thank you. I was nudged by the Deputy Presiding Officer to keep my answers shorter, so I'll make an effort to do that. I won't repeat what I said yesterday in the Senedd when we were discussing this rate reduction of 30 per cent. But I do hope that it achieves two things. I hope that it makes a real difference to these businesses that will benefit from this, and that they will feel that it will enable them to plan more effectively for the future because this is a permanent cut. But also I hope that it delivers a message of support from this Government, and this Senedd if everyone agrees to the regulations, that we are serious about seeing this sector being supported and benefiting and developing in those communities across Wales that will benefit—not just those in coastal areas in our constituency, but also those town centres and suburbia too in our cities, towns and post-industrial communities.
2. Questions to the Cabinet Minister for Finance cy
O fewn Llywodraeth Cymru, y Gweinidog Cabinet dros Lywodraeth Leol, Tai a Chynllunio sy'n uniongyrchol gyfrifol am lywodraeth leol, ond rŷn ni'n ymwybodol ar draws y Llywodraeth o'r pwysau ariannol ar gynghorau sir wrth iddynt ddelifro gwasanaethau cyhoeddus pwysig.
Official English translation
Within the Welsh Government, responsibility for local government lies with my colleague the Cabinet Minister for Local Government, Housing and Planning, but we are aware across the Government that there is financial pressure on local authorities as they deliver important public services.
2. Questions to the Cabinet Minister for Finance en
I represent a rural community, and have done over the years, so I'm very familiar with the fact that there are many factors that are at play in designing and deciding on the future of rural schools. It is not just the availability of public funding. Rural communities and aspects within those rural communities are a challenge, especially when we think about the depopulation, especially of our younger population, from many of our rural communities. How we look across Government as to how we can support that, not just in terms of money, but in how we are designing support, housing and economic opportunity for our rural areas, is important. The important piece of work that this Government has started, though, is how we design a local government formula that meets the complexity of needs that our local authorities have. You rightly identified two of them in rurality and sparsity and the difficulty and expensive nature of delivering services across rural and sparse areas. We had reference made earlier to other priorities as well in terms of socioeconomic deprivation. Making sure that we strike a better balance in how we can deliver services effectively to all our communities in Wales is the journey that this Government has commenced in this piece of work, and hopefully all of us can involve ourselves in that.
2. Questions to the Cabinet Minister for Finance cy
Mae'r rhagolygon ar gyfer cyllideb Cymru yn dal i fod yn hynod heriol. Mae disgwyl i’r cyllid adnoddau ostwng 0.7 y cant mewn termau real yn 2027-28 a bydd cyllidebau cyfalaf yn gostwng dros y tair blynedd nesaf, o’i gyferbynnu â'r twf cyfartalog o 3.5 y cant y flwyddyn mewn termau real a welwyd ddechrau'r degawd.
Official English translation
The outlook for the Welsh budget remains extremely challenging. The expectation is that resource funding will fall 0.7 per cent in real terms in 2027-28 and that capital budgets will decline over the next three years, in contrast to the average real-terms growth of 3.5 per cent per year seen since the start of the decade.
2. Questions to the Cabinet Minister for Finance en
I don't dispute the Holtham commission. I don't dispute the point you made at the start that wherever you start your analysis of any data, you can assess that. I'm trying to think of how we think about public service delivery now in the post-COVID period. That's why I was identifying this decade only. But you and I were in Senedds of the past where those austerity years of public finance in Wales, under a different political regime at a UK level, were particularly difficult at that time as well. So, I'm not pitching one difficult time against another. We have faced many of them in this place. I actually go back long enough to remember a time of plenty as well in this place, but that was another decade, almost in another century. On the point you make, though, about needing to properly now assess where we are in terms of fiscal equality and meeting the economic and social needs of Wales through the Barnett formula as it is currently, our view as a Government is that the Barnett formula needs review. My immediate view on that—and it's something that I shared with the previous finance Minister—is that the Barnett formula especially needs its operational aspects to be strengthened. So, we need greater transparency on the Barnett formula as it exists, as well as independent oversight of the Barnett formula, so that we never ever again have to deal with the fiasco as it was of the decision on HS2 and how that has underfunded us as a country. And on that, if not on any other issue, I hope that we can all unite.
8
Open this sitting on the stage
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system cy
Diolch, Lywydd. Heddiw, rwy'n falch i gyhoeddi newidiadau y bydd Llywodraeth Cymru yn eu gwneud i adlewyrchu'r ymrwymiadau yn ein maniffesto i ailgydbwyso’r system ardrethi annomestig, a sicrhau tegwch i fusnesau'r stryd fawr. Rŷm ni'n cydnabod pwysigrwydd sectorau manwerthu, lletygarwch a hamdden llewyrchus, ac mae'r rhain yn ganolog i’n huchelgais i adfywio canol trefi a rhoi bywyd newydd i'n stryd fawr. Bydd ein gwaith o ailgydbwyso’r system ardrethi yn cael ei gyflawni drwy newidiadau i’r lluosyddion gwahaniaethol presennol, gan wella’r cymorth i fusnesau lletygarwch a hamdden penodol. Bydd cwmpas ehangach ar gyfer y lluosydd is yn cael ei ariannu gan gynnydd bach i’r lluosydd uwch sy’n gymwys i’r eiddo â'r gwerth uchaf yn y sylfaen drethu ar draws pob sector. O 2027-28 ymlaen felly, bydd y lluosydd is sy'n cael ei ddefnyddio ar gyfer siopau manwerthu yn berthnasol hefyd i rai mathau o eiddo lletygarwch a hamdden bach a chanolig eu maint. Bydd hyn yn dod â busnesau lletygarwch a hamdden cymwys yn unol â'r cymorth parhaol a gyflwynwyd i fanwerthwyr eleni. Bydd eiddo cymwys sydd â gwerth ardrethol o dan £51,000 yn cael gostyngiad o 30 y cant yn eu biliau ardrethi annomestig. Bydd y cymorth parhaol hwn yn disodli ac yn rhagori ar y rhyddhad dewisol dros dro o 15 y cant ar gyfer eiddo lletygarwch bwyd a diod sy’n cael ei ddarparu ar hyn o bryd. Bydd yn golygu bod ystod ehangach o fusnesau lletygarwch a hamdden yn cael y sicrwydd hirdymor sydd ei angen arnyn nhw i fuddsoddi a thyfu. Y mannau lletygarwch bwyd a diod sy'n gymwys felly yw tafarndai, bwytai, caffis, bariau, cyrtiau bwyd, clybiau trwyddedig a lleoliadau cerddoriaeth fyw. Y mathau o lety ymwelwyr a fydd yn gymwys yw gwestai, tai llety a hosteli. Ac o ran hamdden, y mannau cymwys yw sinemâu, theatrau, llyfrgelloedd, amgueddfeydd a champfeydd. Mae'r busnesau hyn yn cyflawni rolau pwysig sy'n ategu ei gilydd ar y stryd fawr a chanol trefi ffyniannus. Yn ogystal â manwerthwyr, bydd talwyr ardrethi ar gyfer tua 20,000 o safleoedd yn elwa ar y lluosydd is estynedig. Mae dros 12,500 yn fwy o'r mathau perthnasol o eiddo eisoes yn gymwys i gael rhyddhad llawn, sy'n golygu nad ydyn nhw'n talu unrhyw ardrethi annomestig. Bydd talwyr ardrethi ar gyfer y mwyafrif o eiddo ledled Cymru, yn arbennig busnesau bach, hefyd yn parhau i elwa ar sawl rhyddhad parhaol sy’n werth mwy na £200 miliwn y flwyddyn ar hyn o bryd. Rhaid taro cydbwysedd rhwng y cymorth ehangach sy'n cael ei ddarparu drwy’r lluosydd is ac effaith hynny ar werth y lluosydd uwch. Bydd y lluosydd uwch yn cael ei osod ar ychydig dros 4 y cant yn uwch na'r lluosydd safonol o 2027-28 ymlaen. Mae hyn yn gynnydd bach i'r gwahaniaeth presennol, ac mae hi'n ffordd deg o ailddosbarthu atebolrwydd er mwyn inni allu rhoi gwell cefnogaeth i'r busnesau sy'n galon i'r stryd fawr a chanol trefi. Mae’r newidiadau hyn i’r lluosyddion gwahaniaethol yn gysylltiedig â gwaith ehangach y tasglu canol trefi. Bydd y tasglu yma yn ystyried fframweithiau polisi cenedlaethol, yn ogystal â’r cymorth wedi’i deilwra a allai fod ei angen yng nghanol trefi unigol. Mae ein dull gweithredu yn cydnabod y bydd anghenion yn amrywio rhwng llefydd sy’n wynebu gwahanol heriau, tu hwnt i’r system ardrethi.
Official English translation
Thank you, Llywydd. Today, I'm pleased to announce changes the Welsh Government will make to reflect our manifesto commitments to rebalance the non-domestic rates system, and level the playing field for high-street businesses. We recognise the importance of vibrant retail, hospitality and leisure sectors, and these are central to our ambition to regenerate town centres and to breathe new life into our high streets. Our work of rebalancing the rates system will be delivered through changes to the existing differential multipliers, improving support for selected hospitality and leisure businesses. An expanded scope for the lower multiplier will be funded by a marginal increase to the higher multiplier, applicable to the highest value properties in the tax base across all sectors. From 2027-28, selected small to medium-sized hospitality and leisure properties will be subject to the lower multiplier currently applied to retail shops. This will bring eligible hospitality and leisure businesses in line with the permanent support introduced for retailers from this year. Eligible properties with rateable values below £51,000 will attract a 30 per cent reduction in their non-domestic rates bills. This permanent support will replace and exceed the temporary discretionary relief of 15 per cent for food and drink hospitality properties that is currently being provided. It will mean that a wider range of hospitality and leisure businesses will get the long-term certainty that they need to invest and to grow. The eligible food and drink hospitality properties are pubs, restaurants, cafes, bars, food courts, licensed clubs and live music venues. The eligible visitor accommodation properties are hotels, guest houses and hostels. And in the leisure sector, the eligible properties are cinemas, theatres, libraries, museums and gyms. These businesses play important and complementary roles in vibrant high streets and town centres. Along with retailers, ratepayers for around 20,000 properties will therefore benefit from the expanded lower multiplier. Over 12,500 more properties of the relevant types already attract full relief, and that means that they therefore do not pay any non-domestic rates. Ratepayers for a majority of properties across Wales, particularly small businesses, will also continue to benefit from a range of permanent reliefs currently worth more than £200 million per year. There is a balance to strike between the broader support that is provided through the lower multiplier and the resulting impact on the value of the higher multiplier. The higher multiplier will be set at just over 4 per cent above the standard multiplier from 2027-28 onwards. This is a small increase to the existing difference, and it's a fair way to redistribute liability so that we can better support the businesses that are at the heart of our high streets and town centres. These changes to the differential multipliers are linked with the broader work of the town centres taskforce. This taskforce will take account of national policy frameworks, as well as considering the more tailored support that may be needed in individual town centres. Our approach recognises that needs will vary between places that may be facing different challenges that might go beyond the rate system.
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system en
I'll bring forward the regulations required to implement the changes to the differential multipliers in the coming weeks. The regulations will specify the properties that will be subject to the lower multiplier, and amend the value used to calculate the higher multiplier relative to the standard multiplier for any given year. Subject to the approval of this Senedd, the changes will take place on 1 April 2027. The values of the multipliers for next year will be determined as part of our budget preparations for 2027-28, following the UK Government's autumn budget. I'm proposing to make these changes at the earliest opportunity in this Senedd, to prioritise the improvements that are deliverable and affordable in the short term. The Welsh Government will continue to consider further reforms to the non-domestic rates system that reflect our broader ambitions for Wales. I know that Members across the Chamber are interested in this matter, and ideas for further measures on non-domestic rates will receive a listening ear from me. Diolch.
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system cy
Ie, wel, mae'n siŵr y gallwn i fod wedi gwneud y datganiad yma unrhyw bryd yn ystod tymor yr haf. Roedd y datganiad yn barod i'w wneud. Dewisais i yn benodol i aros tan ddiwrnod cyntaf y Senedd i fod nôl yn ymgynnull i wneud y datganiad, a dwi'n ei wneud e ar lawr y Senedd yma er mwyn cael cwestiynau gan bleidiau a gan Aelodau fan hyn i weld sut maen nhw'n ymateb i'r datganiad, a beth mwy maen nhw'n ei feddwl y dylai'r system yma ei gyflawni. Ar ôl y pum munud yna gan gynrychiolydd Reform, dwi ddim yn gwybod a ydy Reform yn mynd i gefnogi'r gostyngiad yma o 30 y cant mewn ardrethi busnes ar gyfer y sector yma, sy'n rili bwysig i'n canol trefi ni, neu beidio. Doedd hi ddim yn glir i mi, o'r hyn a ddywedoch chi, a fyddech chi'n ei gefnogi fe neu beidio. Fe fydd yn rhaid i chi benderfynu, wrth gwrs, cyn bod yna bleidleisio ar lawr y Senedd yma un ffordd neu'r llall ar newid o'r math yma. Ond a gaf i ddweud pam fod Plaid Cymru wedi penderfynu cymryd y cam cychwynnol yma? Mae Aelodau ar draws y Senedd yma yn sôn yn barhaus am yr angen i gryfhau ein canol trefi ni. Mae ein canol trefi ni yn bwysig i'r cymunedau rŷn ni'n eu cynrychioli, p'un ai ydy hynny yn ein hardaloedd diwydiannol, yn ein Cymoedd, ni neu yng nghefn gwlad. Mae rhoi cymorth i'r busnesau yna sydd, yn eu hystod ehangach, yn bodoli'n benodol yng nghanol trefi wedi bod yn gomitment maniffesto gan Blaid Cymru, a heddiw yn gomitment inni ei ddelifro o fewn y Llywodraeth. Dwi'n gobeithio bod hwnna'n taro nodyn a fydd yn cael ei gefnogi gan bobl ar draws y Senedd yma, gan gynrychiolwyr o gymunedau o bob cwr o Gymru ac o bob cefndir gwleidyddol hefyd. Rydych chi wedi bod bach yn rhy fisi yn darllen y press release yn hytrach na beth ddywedais i yn y datganiad, 5 tr oddi wrthych chi fan hyn y prynhawn yma. Roeddech chi'n gofyn y cwestiwn, 'Is this it?', ac fe atebais i hwnna yn y fan hyn o'ch blaen chi. Fe atebais i fe pan ddywedais i mai'r cam cyntaf yw hwn, a dwi'n awyddus i glywed beth yw barn Aelodau eraill ar beth yn fwy y gallai'r Llywodraeth yma ei gyflawni ar gyfer cefnogi busnesau. Felly, halwch bach llai o amser yn darllen press releases, yn beirniadu'r press releases, a defnyddio bach mwy o'ch amser ar eich traed yn y Senedd yma yn gwrando ar yr hyn sy'n cael ei ddweud.
Official English translation
Well, I'm sure I could have made this statement at any point during the summer term. The statement was ready to be made. I chose in particular to wait for the first day of the Senedd being back in session to make the statement, and I'm making it on the floor of the Senedd in order to receive questions from other parties and from Members here to see how they respond to the statement, and what else they think that this system should deliver. After that five minutes from the Reform representative, I'm not sure whether Reform are going to support this reduction of 30 per cent in business rates for this sector, which is a really important sector for our town centres, or not. It wasn't clear to me, from what you said, whether you would support it or not. But you'll have to decide on that, of course, before the voting happens on the floor of this Senedd one way or another on a change of this kind. But may I say why Plaid Cymru decided to take this initial step? Members across this Senedd continuously talk about the need to strengthen our town centres. Our town centres are important to the communities that we represent, whether that is in our industrial areas, in our Valleys, or in more rural areas. Providing support to those businesses that are, in their broad range, existing in town centres has been a manifesto commitment from Plaid Cymru, and today it is a commitment that we are delivering within Government. I hope that that strikes a chord that will be supported by people across the Senedd who represent communities all across Wales and of all political backgrounds as well. You have been a bit too busy reading that press release, I think, rather than listening to what I said in my statement 5 ft away from you this afternoon. You asked the question, 'Is this it?', and I responded to that today in front of you. I responded when I said that this is an initial first step, and I'm keen to hear the views from other Members on what more this Government could be able to deliver in order to support those businesses. So, spend a bit less time reading the press releases and judging those press releases, and use a bit more of your time standing up in this Chamber listening to what's being said.
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system cy
Diolch am y sylwadau a'r croeso a'r heriau yn eich cyfraniad. Wrth gwrs, un o'r manteision, gobeithio, bydd y busnesau sydd yn gymwys ar gyfer y gefnogaeth yma'n ei weld yw y bydd e'n 30 y cant o ostyngiad parhaol iddyn nhw. Mae'r gostyngiad sydd mewn lle ar gyfer tafarnau ar hyn o bryd yn discretionary ac ond yn 15 y cant, ac felly fe fydd hwn yn rhagori ar hynny ac fe fydd e'n awtomatig ar gyfer y busnesau hynny. Bydd e'n caniatáu i'r busnesau sy'n gymwys i allu cynllunio ar sail y gwarant fydd yna, os bydd y rheoliadau a'r mesur yma'n pasio, fod hyn yn rhywbeth maen nhw'n gallu cynllunio ar ei gyfer o flaen llaw. Wrth gwrs, ychwanegu at y system sydd eisoes mewn lle ar gyfer siopau rŷn ni'n ei wneud, y system wnaeth gael ei gyflwyno gan y Gweinidog cyllid o fy mlaen i o dan Lywodraeth Lafur, ac felly mae'r defnydd o'r multipliers a'r gwahanol multiplier wedi cael ei gyflwyno gan fy rhagflaenydd i yn y cyd-destun yna. Felly ymestyn y nifer o fusnesau sy'n gymwys am y cwtogiad yma yn y trethi busnes ydw i. Ac mae'n gam cyntaf, fel y gwnes i sôn, wrth inni feddwl ynglŷn â sut gallwn ni fynd ymhellach gyda'r tasglu ar ganol trefi sydd wedi'i sefydlu o ran datblygu'r stryd fawr a chefnogi'r stryd fawr fel calon i nifer o gymunedau. Ond hefyd, mae'r her rŷch chi'n ei rhoi yn her sydd yn sôn am y system yn ei chyfanrwydd, wrth gwrs. Rŷch chi'n sôn yn benodol, onid ydych, am ganol dinasoedd, sydd â siopau mawr ac sydd ag anchor stores pwysig yng nghanol y dinasoedd hynny. Mae'n bwysig, wrth ein bod ni'n meddwl ynglŷn â chael y balans yma'n iawn o ran cefnogi busnesau llai, sydd yn alwad sydd yn dod yn barhaus gan Aelodau yn y Siambr yma, ein bod ni'n gwneud hynny gyda golwg ar beidio ag anfanteisio mewn ffordd rhy ddifrifol y busnesau hynny sydd yn fwy. Felly, mae taro'r balans yna'n bwysig. O ran cyhoeddi'r union multipliers fydd yn weithredol ar gyfer 2027, fe fydd hwnna'n gorfod aros tan fydd y gyllideb ar gyfer y flwyddyn nesaf yn cael ei chyflwyno. Dyna pryd fydd hwnna'n dod yn weithredol, yn wybodus. Wedyn, ar y pwynt ynglŷn â'r diwygiad llawn o'r gyfundrefn yma sydd ei angen, dwi'n credu, fel Senedd—. Dwi'n ei glywed e o wahanol bleidiau ac o wahanol Aelodau: yn hytrach na gwneud mân newidiadau fan hyn a fan draw ac ambell waith eu gwneud nhw'n adweithiol i ba bynnag fater sy'n bwrw'r economi, fod angen edrych ar y maes yma yn ei gyfanrwydd. Byddwn i'n gobeithio, wrth inni drafod a testio fwy o'r syniadau ynglŷn â threthi busnes, ein bod ni'n dod i ryw gonsensws ar draws y Siambr yma ynglŷn â'r appetite gwleidyddol sydd yna i fynd i'r afael â'r gwaith yma. Fe fyddwn i'n hapus i fod yn rhan o'r drafodaeth ynglŷn â hynny. O ran y cliff edges yma rŷch chi wedi sôn amdanyn nhw—os ŷch chi un ochr neu'r llall o £51,000, mae e'n gwneud 30 y cant o wahaniaeth i chi o ran faint o dreth rŷch chi'n ei dalu—mae hwnna'n un o'r ystyriaethau yn sicr sydd angen edrych arnyn nhw yn y dyfodol. Felly, mae yna newidiadau pellach, dwi'n credu, y gall y Llywodraeth edrych i'w gwneud, gyda chefnogaeth yn y Siambr yma, ac wedyn mae yna gwestiwn mwy ynglŷn â mynd i'r afael â diwygio'r gyfundrefn yn ei chyfanrwydd. Mae'n siŵr y bydd y drafodaeth ar hynny yn parhau.
Official English translation
Thank you for those comments and the welcome and the challenges that you set out there in your contribution. Of course, one of the advantages, hopefully, that the businesses that are eligible for this support will see is that it will be a 30 per cent reduction that will be permanent for them. The reduction that's in place for pubs at the moment is discretionary and is only 15 per cent, and therefore, this will excel compared to that and it will be automatic for those businesses. It will allow those businesses that are eligible to be able to plan on the basis of the guarantee that they will have that, if the regulations on this measure pass, this will be something that they can plan for ahead of time. Of course, we are adding to the system that's already in place for shops, that system that was introduced by the previous finance Minister under the Labour Government, so the use of the multiplier, the different multipliers, was introduced by my predecessor in that context. So what I'm doing is expanding the number of businesses that are eligible for this cut in non-domestic rates. And it is a first step, as I mentioned, as we start to think about how we can go further with the town centre taskforce that has been set up in terms of developing the high street and supporting the high street as the heart of a number of communities. But also the challenge you set forward is a challenge that is about the system as a whole, of course. You speak particularly about city centres, which have large shops and have important anchor stores in the middle of those cities. It is important, of course, that we think about striking the right balance in terms of supporting the smaller businesses, which is a continuous call coming from Members in this Chamber, but with an eye to not disadvantaging the larger businesses too much. So striking that balance is important. In terms of publishing the exact multipliers that will be operational for 2027, that will have to wait until we have the budget for next year, when that is introduced. That is when that will become operational, will become known. And then on the point about the full reform of this system that is needed, I think, as a Senedd—. I hear it from different parties and from different Members: rather than making small changes here and there and sometimes making them in a reactive way, reacting to whatever issue is affecting the economy, we need to look at this area as a whole, in its entirety. I would hope, as we discuss and test out more of the ideas relating to business rates, we will come to a consensus across this Chamber with regard to the political appetite that there is to address this work. I would be happy to be part of that discussion. On these cliff edges you mentioned—when £51,000 is the limit and if you're one side or the other of that, it's a 30 per cent difference in how much tax you pay—this is one of the considerations certainly that needs to be looked at in the future. So, there are further changes that I think the Government could look into making, with support from this Chamber, and then there is a broader question about addressing and reforming the system as a whole. I'm sure that the discussion on that will continue.
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system cy
Diolch am y cyfraniad.
Official English translation
Thank you for the contribution.
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system en
I was obviously too keen to go to the pub to prepare for this statement, so I'll reflect on what everybody has united upon in thinking about the timing of statements. But just very genuinely from me, I could have made this statement during the summer recess, in the peak of the tourism season, but I quite deliberately left it until the first day back. But, yes, I'll consider the timing, and getting back in to the rhythm of the work of this place is something that I need to do. Yes, just on the issue around a cliff edge, I do recognise that this is a very difficult issue for some businesses who fall the wrong side of a support package of this kind, and only very closely. So, the tapering issue is something that I will be interested in looking at, but I didn't want to delay the simplicity and the ability to make this statement and to move on this level of support of 30 per cent reduction for the hospitality and leisure sectors in this way by trying to do everything at the same time in one go. So, these are issues that I will be returning to, and they are issues, of course, that the high-street taskforce will also want to look at, I'm sure, as are many of the issues that you raise. The issue around whether new start-ups on the high street should be given a holiday period for that first six months to a year of trading as a kind of incentive for them to take up, quite often, empty shops, making local authorities more proactive in their local area to support business growth as well by incentivising growth of businesses and growth of business rate collection, with some payback back to local authorities—. I'm always interested in how we can make these systems include more incentives to do better all the time and to have more economic activity. So, those are some things that I hope the town-centres taskforce will look at, but also that we do in response to the issues that are raised in the Chamber here today and at other times. On mixed businesses, I've come across this as an issue in my own constituency at different times as well, so I'm aware that it's an issue in the system and a tension. I will need to go back to my officials and see whether there is anything in the greater extent of the categorisation that we're now bringing into the 30 per cent reduction that will enable mixed businesses of the kinds you've described to qualify for this. But I can't give a guarantee on the floor here in any individual case or generally on mixed businesses, but I will look at it to see what is possible.
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system en
Thank you for your contribution, and thank you for stretching the discussion to other areas that this Senedd will be interested in over the next months and years. As I've said, this is very much a first step to support businesses on our high street. It's a reasonably straightforward support package that we can offer at this time. But there are very many aspects of business rate support that need to be looked at and many ideas here this afternoon. The use of differential multipliers, as you've suggested, is new to the way we do our business rate support in this context. It was first introduced on retail properties and on shops by the predecessor Government; we're extending that today. But we need to, again, think about extending the categorisation and possibly categorising some for the first time, as new businesses and new properties develop within our economy. So, there is much still to do on this. This is a first step. For those businesses that will benefit from this, it is most definitely welcome in very challenging times. But there are an array of different measures that the Government currently works on to support businesses, and there is much that both this Government and the UK Government can do to support businesses in what is a very challenging time.
4. Statement by the Cabinet Minister for Finance: Rebalancing the non-domestic rates system en
The points you've made and the illustrations you've given as to how important the hospitality sector is in our various communities, and how important it is for different aspects of the economy, how many of our young people have their first jobs in pubs—. I had my first job in a pub, and I pulled my last pint in a pub in 1987. So, I hadn't done it until I pulled a pint just recently, and it showed that 30 years and more had passed since I pulled a pint. But to be serious and to respond to the points that you've made, this will be a contribution that alleviates some of the pressure on our hospitality and leisure sector. It is more than just pubs, it is cafes and restaurants, and it is gyms and museums and libraries. So, it's the widest possible array, and when you add that to shops as well, it's the widest possible array of many of the businesses that feature in our town centres and some of our villages as well. So, it goes further than Government has done before in Wales. So, that's the important contribution of today. But I'm sure, as some have said already, that there are a myriad of different other issues that face our hospitality and leisure sectors. There are many pressures in our economy. The inflationary pressure that we are feeling today and will possibly be increasing again is something that puts particular pressure on so many of our high-street businesses. There are actions that the UK Government as well as the Welsh Government can take. But, hopefully, today will have been a strong signal that this Government and this Senedd believe that our small businesses that are trying to work so hard to keep going in our communities right throughout Wales in difficult times—this Government has their back and will try and take all initiatives that it can to support them in these testing times.
13
Open this sitting on the stage
9. Debate: The First Supplementary Budget 2026-27 cy
Lywydd, dwi'n cyflwyno'r cynnig ac agor y ddadl ar gyllideb atodol gyntaf Llywodraeth Cymru ar gyfer 2026-27. Y gyllideb atodol yma yw ein cyfle cyntaf i gynnig newidiadau i gyllideb lawn y flwyddyn hon a dechrau'r broses bwysig o sicrhau bod y gwariant yn cyd-fynd â'n blaenoriaethau fel Llywodraeth newydd. Rŷn ni'n canolbwyntio, felly, ar gyfres wedi'i thargedu o ddyraniadau adnoddau a chyfalaf ychwanegol. Bydd hyn yn ein galluogi i wneud cynnydd cyflym ar ein blaenoriaethau pwysicaf fel Llywodraeth, gan ddangos hefyd fod arian yn cael ei reoli'n ddarbodus a bod yna sefydlogrwydd i wasanaethau cyhoeddus a phartneriaid. Law yn llaw â hyn, fel sy'n arferol mewn cyllidebau atodol, mae'r gyllideb yn gwneud addasiadau ffurfiol i'r lefel gyffredinol o adnoddau sydd ar gael i Gymru yn sgil datganiad y gwanwyn a phrif amcanion Llywodraeth y Deyrnas Gyfunol ar gyfer y flwyddyn ariannol yma. Mae hefyd yn cynnwys ail ddatganiad o gyllideb derfynol eleni i adlewyrchu'r portffolios gweinidogol newydd. Mae cynnig cyllideb atodol gyntaf yn fecanwaith cynnar yn y flwyddyn ariannol i osod yn ffurfiol newidiadau i'r gyllideb flynyddol. Yr ail gyllideb atodol yw'r cyfle olaf i ffurfioli yn derfynol y dyraniadau cyllideb tuag at ddiwedd blwyddyn ariannol. Mae'r gyllideb atodol gyntaf yma felly'n gwneud £433 miliwn o ddyraniadau ychwanegol. Mae hyn yn cynnwys £294 miliwn ar gyfer blaenoriaethau Llywodraeth Cymru, a £139 miliwn ar gyfer trosglwyddiadau cyfrifoldeb cyllidebol. Mae balans o £246 miliwn o adnoddau heb eu dyrannu a £29,000 o gyfalaf cyffredinol wedi cael eu cadw wrth gefn yn y gyllideb atodol gyntaf er mwyn rheoli pwysau yn ystod y flwyddyn ac ymateb i flaenoriaethau. Y cyllid hwn heb ei ddyrannu yw ein hamddiffyniad yn erbyn y sefyllfa ariannol rŷn ni wedi ei hetifeddu ac yn erbyn y pwysau ariannol sylweddol sydd heb ei ariannu o fewn y flwyddyn, gan gynnwys cyfanswm o dros £300 miliwn o droswariant y mae'r gwasanaeth iechyd yn ei adrodd ar hyn o bryd. Mae rheoli'r pwysau hyn yn ystod y flwyddyn ariannol yn her sylweddol, ac mae'r her hon yn anoddach fyth oherwydd y fframwaith ariannol caeth ŷn ni'n gweithredu oddi mewn iddo. Mae'r cyllid adnoddau heb eu dyrannu yna fel arian wrth gefn i'w ddyrannu'n ddiweddarach i helpu i reoli'r pwysau presennol yn y system, os oes angen. Allwn ni ddim dyrannu'r cyllid yna'n gyfan mor gynnar yn y flwyddyn ariannol. Fe wnaeth y Llywodraeth flaenorol ddyraniadau tebyg i'r NHS mewn cyllidebau atodol diwedd blwyddyn: £200 miliwn yn 2025-26, £424 miliwn yn 2023-24. Mae setliad Llywodraeth Cymru wedi ei gysylltu yn uniongyrchol, fel ŷn ni'n gwybod, gyda phenderfyniadau Llywodraeth y Deyrnas Gyfunol. Mae'n gallu newid, hyd yn oed o fewn blwyddyn, i fyny ac i lawr. Dim ond ychydig ddyddiau ar ôl i fi ymddangos gerbron y Pwyllgor Cyllid, fe wnaeth Llywodraeth y Deyrnas Gyfunol gyhoeddi ei chynllun buddsoddi mewn amddiffyn. Mae disgwyl i hynny arwain at ganlyniad negyddol uniongyrchol i'n cyllideb gyfalaf eleni. Os bydd y toriad o 1 y cant a ragwelir yn taro pob adran Lywodraeth yn gyfartal, bydd hynny'n golygu colli rhwng £25 miliwn a £30 miliwn yn syth yn ystod y flwyddyn ariannol hon yn unig, ac mae mwy i ddod. Cyllideb atodol yw hon.
Official English translation
Llywydd, I move the motion and open the debate on the Welsh Government's first supplementary budget for 2026-27. This supplementary budget is our first opportunity to propose changes to the full budget this year and to start the important process of ensuring that expenditure aligns with our priorities as a new Government. We are focusing, therefore, on a targeted allocation of resources and additional capital. This will enable us to make swift progress on our most important priorities as a Government, while also demonstrating that money is being managed prudently and that there is stability for public services and partners. Alongside this, as is usual in supplementary budgets, the budget makes formal adaptations to the general level of funds available to Wales in light of the spring statement and the main objectives of the UK Government for this financial year. It also includes a restatement of this year's final budget to reflect the new ministerial portfolios. Moving a first supplementary budget is an early mechanism in the financial year to set out formally changes to the annual budget. The second supplementary budget is the final opportunity to finally formalise the allocations towards the end of a financial year. This first supplementary budget therefore makes £433 million of additional allocations. This includes £294 million for Welsh Government priorities, and £139 million for budgetary responsibility transfers. The balance of £246 million in unallocated resources and £29,000 in general capital has been held in reserves in the first supplementary budget in order to manage in-year pressures and to respond to priorities. This unallocated funding is our protection against the financial position that we have inherited and against the significant financial pressures that are unfunded within the year, including a total of over £300 million of overspend that the health service is currently reporting. Managing these in-year pressures is a significant challenge, and that challenge is made more difficult because of the tight funding framework that we work within. The unallocated resources funding is there as reserves to be allocated later to help us manage the current pressures in the system, if necessary. We cannot allocate that funding in its entirety so early in the financial year. The previous Government made similar allocations to the NHS in supplementary budgets at the end of the financial year: £200 million in 2025-26, £424 million in 2023-24. The Welsh Government's settlement is directly linked, as we know, to decisions made by the UK Government. It can change, even in-year, up and down. Only a few days after I appeared before the Finance Committee, the UK Government announced its defence investment plan. That is expected to lead to a direct negative consequence for our capital budget this year. If the cut of 1 per cent anticipated hits all departments of Government equally, that will mean the loss of between £25 million and £30 million immediately during this financial year alone, and there is more to come. This is a supplementary budget.
9. Debate: The First Supplementary Budget 2026-27 en
The clue's in the name.
9. Debate: The First Supplementary Budget 2026-27 cy
Mae'n atodol i'r gyllideb a gyflwynwyd a phasiwyd gan y Llywodraeth Lafur flaenorol. Penderfyniad bwriadol y Llywodraeth yma oedd i anrhydeddu ymrwymiadau gwariant y Llywodraeth flaenorol, i beidio â gwneud newidiadau i benderfyniadau cyllidol Llafur. Yn y cyd-destun hwn, rwy'n deall yr hyn mae'r Torïaid wedi'i ddweud wrthyf, fod peidio â newid cyllideb Llafur yn ei gwneud yn amhosib iddyn nhw bleidleisio dros y gyllideb atodol yma heddiw. Dwi'n deall hynny. Yn ychwanegol, ein penderfyniad hefyd oedd i gychwyn gwneud rhai ymrwymiadau gwariant newydd i gyd-fynd â'r mandad gawsom gan bobl Cymru drwy etholiad cenedlaethol. Mae'r gyllideb hon felly yn dyrannu £294 miliwn, sef £164 miliwn o gyllid adnoddau a £130 miliwn o gyllid cyfalaf, i gefnogi blaenoriaethau ymarferol y gall pobl eu gweld a'u teimlo, fel y pleidleisiwyd amdanynt, fel lleihau amseroedd aros yn yr NHS, ehangu gofal plant wedi'i ariannu, sicrhau bod mwy o ddisgyblion yn cael prydau ysgol am ddim, mwy o dai cymdeithasol, cefnogi trafnidiaeth a gwaith cynnal a chadw hanfodol yn ein hysgolion a'n hysbytai. Ar sawl gwedd roedd y rhain yn flaenoriaethau oedd i'w gweld ym maniffestos pleidiau eraill yn ystod y cyfnod etholiadol. Ein bwriad yw buddsoddi £145 miliwn yn ein system iechyd i gyflymu mynediad at driniaeth a gwella canlyniadau i bobl Cymru. Rŷn ni'n rhoi blaenoriaeth i ddarparu arian ychwanegol i daclo tlodi plant a helpu pobl ledled Cymru gyda chostau byw cynyddol, ac yn dyrannu £55 miliwn ychwanegol hefyd i ddechrau gwireddu ein hymrwymiad i drawsnewid gofal plant. Mae'r gyllideb hon hefyd yn darparu £2 filiwn i ddechrau gweithredu'r peilot Cynnal. Mae hynny'n gam pwysig cyntaf yn ein cenhadaeth ehangach i daclo'r broblem ofnadwy tlodi plant. Rŷn ni'n buddsoddi £15 miliwn ychwanegol mewn prydau ysgol am ddim. Bydd hynny'n ein galluogi i ddechrau ymestyn y ddarpariaeth o fis Medi ymlaen i ddisgyblion mewn ysgolion uwchradd. Rŷn ni hefyd yn darparu £40 miliwn o gyfalaf ychwanegol i wella safon adeiladau ein hysgolion, a bydd swm cyfalaf pellach o £5 miliwn yn mynd tuag at y rhaglen cyfleusterau cymunedol. Mae'r gyllideb yn cynnwys £2 filiwn i helpu i gyflwyno'r rhaglen nofio a diogelwch dŵr newydd ar gyfer ysgolion, £8 miliwn ychwanegol i barhau i gynnig teithiau bws am £1 i blant a phobl ifanc, a hefyd £2 filiwn mewn gwasanaeth bysiau rhwng y gogledd a'r de ar hyd coridor y gorllewin, sydd heb linell trên. Mae pawb yng Nghymru yn haeddu cartref diogel y gallan nhw ei fforddio. Dyna pam rŷn ni'n buddsoddi £20 miliwn o gyllid cyfalaf i ddarparu dros 100 o gartrefi ychwanegol ar gyfer rhent cymdeithasol. Mae'r gyllideb atodol gyntaf yma yn rhan rwtîn o'r broses gyllidebol flynyddol. Mae'n rhoi sicrwydd i'n gwasanaethau cyhoeddus. Mae hefyd yn sicrhau bod aelodau pwyllgorau'r Senedd yma yn eu gwaith craffu yn gallu gweld yn glir y newidiadau i benderfyniadau'r Llywodraeth o ran gwariant ac incwm. Hoffwn i ddiolch ar y pwynt yma i'r Pwyllgor Cyllid am ystyried y gyllideb hon yn llawn ac am gyhoeddi ei adroddiad dros nos. Dwi wedi darllen yr adroddiad y bore yma a dwi'n gweld gwerth yn yr argymhellion a byddaf yn ceisio ymateb yn bositif iddyn nhw, ac yn edrych ymlaen at gydweithio gyda'r Pwyllgor Cyllid ar fireinio ein sgrwtini a phroses cyllid dros gyfnod y Senedd yma.
Official English translation
It is supplementary to the budget that was presented and passed by the previous Labour Government. It was the deliberate decision of this Government to honour the spending commitments made by the previous Government, not to make changes to funding decisions made by Labour. In that context, I understand what the Conservatives have told me, that not changing the Labour budget makes it impossible for them to vote in favour of this supplementary budget today. I fully understand that. In addition, our decision too was to start to make some new spending commitments to align with the mandate that we received from the people of Wales through a national election. This budget, therefore, allocates £294 million, which is £164 million in resources and £130 million in capital, to support practical priorities that people can see and feel, as was voted for, such as reducing waiting times in the NHS, expanding funded childcare, ensuring that more pupils receive free school meals, more social homes, supporting transport and crucial maintenance work in our schools and hospitals. In many respects, these were priorities that were seen in the manifestos of other parties during the election period. Our intention is to invest £145 million in our health system to speed up access to treatment and to improve outcomes for the people of Wales. We are giving priority to providing additional funding to tackle child poverty and to help people across Wales with increasing costs of living, and are allocating an additional £55 million to start to deliver our commitment to transform childcare. This budget also provides £2 million to start to implement the Cynnal pilot scheme. That's an important first step in our broader mission to tackle the terrible scourge of child poverty. We are investing an additional £15 million in free school meals. That will enable us to start to extend provision from September onwards to pupils in secondary schools. We are also providing £40 million in additional capital to improve the standard of school buildings, and a further capital sum of £5 million will be provided towards the community facilities programme. The budget includes £2 million to help to introduce the new swimming and water safety programme for schools, and another £8 million to continue to provide £1 transport on buses for children and young people, and also £2 million in a bus service between north and south Wales along the western corridor, which doesn't have a train line. Everyone in Wales deserves a safe home that they can afford. That is why we are investing £20 million in capital to provide over 100 additional homes for social rent. The first supplementary budget is a routine part of the annual budgetary process. It provides assurances to our public services. It also ensures that members of Senedd committees in their scrutiny work can see clearly the changes to Government decisions in terms of income and expenditure. At this point, I would like to thank the Finance Committee for considering this supplementary budget in full and for publishing its report overnight. I have read the report this morning and I see value in its recommendations and I will try to respond positively to them, and I look forward to collaborating with the Finance Committee on refining our scrutiny and the budgetary process over the period of this Senedd.
9. Debate: The First Supplementary Budget 2026-27 en
As I've said, this is a supplementary budget. It does exactly that: it supplements a budget. This Government has honoured the previous Government's budget to the decimal point in order to provide continuity of delivery for our public sector and other partners. We added to that budget, but took nothing away. As the people of Wales would have expected of us in this supplementary budget, we have sought to allocate funding available to us on the priorities they voted for in May's election—on reducing NHS waiting times, on increasing affordable childcare, on tackling child poverty, on transport initiatives, and on a capital programme to improve school and hospital buildings and build new homes. I understand that Members, during the scrutiny of this budget, have sought to pursue the allocation of £344 million consequential funding for the debt write-off to English local authorities as a result of ALN historical overspends in England. This Government has sought to engage constructively on that issue.
9. Debate: The First Supplementary Budget 2026-27 en
It's not a surprise to me that a new party to this Senedd, Reform, would question why consequential funding is not merely passed on to the equivalent recipient in Wales, that this Senedd is merely a go-between. It suits their politics to neutralise this institution. But those of us who are pro-devolution, pro-standing up for the independence of this Senedd and our democratic right to make our own choices, I would expect us all to agree that it is for Welsh Ministers in this Senedd to decide how the Welsh budget is spent, and nothing should be presumed for Wales from an allocation happening in England to deal with English matters. For Wales, do not see England. From those early days of Edwina Hart as finance Minister and Rhodri Morgan as First Minister until today, this principle has been upheld by all Welsh Ministers and Governments. Now, I accept that some of you here who have called for the allocation of extra money related to ALN in England to be allocated to ALN in Wales may still support the right of this Senedd to take its own decisions. But I do say in response to that: beware of blurring these lines and diluting this principle. It's been well defended up until now, by my predecessors and yours. As a Government, however, we have listened to the genuine calls made by parties in the Senedd, councils and schools to increase the allocation for ALN this year, and have been developing a strategic approach to tackle fundamental challenges, as well as responding to immediate pressures. On the table, in real time, in this Chamber, in this moment is £40 million this financial year of additional funding for additional learning needs, which focuses on activities that are deliverable, including direct funding to schools to stabilise and shore up current provision, and which establishes a coherent national model for local authorities and schools to develop local responses in a consistent way. This allocation will be followed by £40 million next year and the following year to provide some certainty to the sector—a £120 million total package for ALN to ease the pressure on schools and councils and to place ALN on a more sustainable footing for future years. Passing this supplementary budget today will enable us to have assurance over the allocations to the outlined priorities of £294 million. That will enable us as a Government to carry a smaller risk in committing to allocating £40 million additionally to ALN this year. We will regularise this allocation in our second supplementary budget and include the allocations of £80 million to future annual budgets. If Members vote against or abstain on this budget today and it doesn't pass, the Government will be able to press ahead with the majority of our work and spending on our priorities at our own risk. But, due to the inherited in-year pressures, we will be unable to add to it another risk of £40 million spend. We will then only be able to use the funding allocated by the previous Government in its budget to ALN this year, with no £40 million uplift. However, we will continue to prepare for better future provision for ALN as part of our next year's budget planning. I ask Members to think carefully, in casting your vote today, of what can be gained and what can be lost. There's £164 million new spend on the NHS, childcare and travel opportunities for your constituents. There's £130 million additional capital money into schools, hospitals and housing. There's a £120 million package for councils and schools for ALN uplift. And to Labour specifically, we offer all of this and your previous Government's budget inherited by Plaid Cymru, its allocations honoured and wholly untouched. This supplementary budget is a good deal for this Senedd and, more importantly, it's a good deal for the people of Wales.
9. Debate: The First Supplementary Budget 2026-27 en
No, I was looking for it.
9. Debate: The First Supplementary Budget 2026-27 en
Diolch, Lywydd. Thank you for the range of views on this supplementary budget from across the political parties, Members, and also for the questions and contributions from committee Chairs and committee members as well. To Reform, thank you for outlining your three red lines. We don't agree with your first red line, but we are working on your other two red lines. Part of that is in this budget and part of that is in the work that the health Minister is doing. To the Conservatives, I can, as I said, see the logic to part of your reasoning in opposing the previous Government's budget, as restated in this budget. And just to Darren, I can count; a good state school education made sure of that. I thank the Green Party for your support, unwhipped as it is, and your challenge to us in that contribution to do more on climate change. To Labour—and I'll start by saying that you're lucky, Huw, that I'm old enough to pass over a slightly condescending comment on my influence in Government—however, I'm totally flabbergasted by Labour. Today, you have had the opportunity to support a £120 million ALN support package for our schools and councils. [Interruption.] You could have—[Interruption.] Did you put your name forward to speak in the debate? Go on, then, you're the leader of your group.
9. Debate: The First Supplementary Budget 2026-27 en
But you are rejecting the deal that would have secured £120 million additional spending on additional learning needs, as you brought to the table. So, I remain, despite that contribution, totally flabbergasted.
9. Debate: The First Supplementary Budget 2026-27 en
The ALN budget ask was brought to the negotiating table by Labour. I accept and respect that, Lynne. That's what a three-week scrutiny process allows to happen. Between a draft budget and the final vote on the budget, it can be improved. And we have moved and engaged on the detail of the proposal with you. And our education Minister was, as you know, keen to have your support to commence this additional budget for ALN as soon as possible. Schools would have returned in September with this new ALN funding ready to be rolled out—£40 million this year, followed by at least another £80 million over the next two years. Defeating this supplementary budget today will mean that this Government will continue without an early supplementary budget. We will carry on to spend in line with the annual budget passed in January. We will be able to continue to roll out the work on NHS waiting lists, increasing free childcare, free school meals and swimming lessons and £1 bus fares, and to boost capital spend on schools, hospitals, social housing and community facilities, all within the spending profiles already passed by this Senedd in the budget in January. But we will not be able to do that and add an in-year additional allocation of £40 million for additional learning needs, because we will not have an assurance of a supplementary budget. That's not spite, Lynne—that is prudent budget management within this financial year. But this Government is keen to improve on the previous Government's allocation to ALN and to work with schools and councils on a long-term stabilisation plan for ALN. We will now move on to this work in the context of our first annual budget. Somehow—[Interruption.] Ah, you're timing me now. You didn't time me in the first contribution, so I have no idea how much time I took.
9. Debate: The First Supplementary Budget 2026-27 en
Yes, you've got to give me time.
9. Debate: The First Supplementary Budget 2026-27 en
I didn't know—. The clock wasn't running in my original contribution.
9. Debate: The First Supplementary Budget 2026-27 en
To Labour Members, old and new, I know that you have recently been badly defeated in an election. I know it's painful and confusing. I have been there. But, ultimately, you will not be defined by that loss, but how you respond to it. It can make a party or break it. You've been lately quite keen, in this Chamber, to point us in Plaid Cymru to Scotland. Well, I point you to Scotland, too. Look at your sister party in permanent opposition since 2007. Today, you will not only vote against the retention, intact, of your own Welsh Labour Government budget, but also against new money to reduce NHS waiting lists, to provide more free childcare, to extend £1 bus travel for young people, to spend more on backlog maintenance for schools and hospitals. Last week, Labour, you voted with Reform to ensure that this Senedd voted against fair funding for Wales. Labour voted against fair funding for Wales. I shudder to think how successive successful previous Labour First Ministers would have viewed that. Today, you vote against £120 million for ALN provision in Wales, with Reform. You will be voting with parties of the right, who will welcome you. [Interruption.] Hear them. Hear them. They will welcome you with open arms, because you will give them their majority today. And you are doing so against a progressive budget that provides more support for those most in need in Wales. The fine statue of Rhodri Morgan is tonight watching its first vote in this Senedd since it was unveiled. I served as a Minister in his Government. He reflected the progressive co-operative values of the Labour Party in Wales. Today, Labour have abandoned those values. And in these final few moments before the vote, there is still time for you to reclaim them. Reclaim them.
9. Debate: The First Supplementary Budget 2026-27 en
I ask Members to vote for this budget motion, to lift our collective heads above tribal party politics. Because this is a progressive budget for progressive parties. And even more importantly, it puts the priorities of the people of Wales first.
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Open this sitting on the stage
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Yn ffurfiol.
Official English translation
Formally.
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Ddirprwy Lywydd, diolch am y cyfle i ymateb i'r ddadl yma. Mae'r rhain yn faterion pwysig i blant, teuluoedd ac ysgolion ledled Cymru. Dwi am ddechrau drwy fod yn glir: mae'r Llywodraeth hon wedi gwneud ymrwymiad i blant a phobl ifanc ag anghenion dysgu ychwanegol. Rŷn ni'n mabwysiadu dull strategol i wneud y system anghenion dysgu ychwanegol yn gynaliadwy, system sydd wir yn taclo'r heriau sylfaenol yn hytrach na jest ymateb i bwysau tymor byr. Mae ein maniffesto yn cynnwys cyfres o fesurau i'r perwyl yma, ac mae'r Gweinidog addysg eisoes yn gweithio ar flaenoriaethau anghenion dysgu ychwanegol, rhai ymarferol a chyllidebol. Mae hwn yn fater cymhleth ac mae angen cyfres o ymatebion cymhleth iddo, a dyna pam mae'r Llywodraeth wedi cyflwyno'r gwelliant heddiw. Yn gyntaf, dwi am ymdrin â'r dybiaeth sylfaenol sy'n sail i'r cynnig yma. Mae'n awgrymu y dylai'r cyllid sy'n dod i law o ganlyniad i benderfyniadau yn Lloegr gael ei drosglwyddo i'r un maes polisi yng Nghymru. Nid felly mae datganoli'n gweithio. Gweinidogion Cymru sy'n gyfrifol am benderfynu sut mae cyllid yn cael ei neilltuo. Dyma'n union sut roedd Llywodraeth flaenorol Cymru'n gweithio, a dyna sut bydd y Llywodraeth yma hefyd yn gweithredu. Yn ail, Ddirprwy Lywydd, mae'n rhaid i ni fod yn glir am natur y cyllid canlyniadol penodol yma. Dyw'r cyllid canlyniadol a ddaeth i law ddim yn adlewyrchu buddsoddiad newydd i wella gwasanaethau yn Lloegr. Mae'n gyllid y mae Llywodraeth y Deyrnas Gyfunol wedi ei roi i ddileu diffygion ariannol hanesyddol oedd wedi cronni mewn awdurdodau lleol yn Lloegr mewn perthynas ag anghenion addysgol arbennig. Yn Lloegr, felly, dyw'r cyllid ychwanegol yma ddim yn mynd i gefnogi gwasanaethau addysg arbennig, a dyw'r cyllid canlyniadol ddim yn recurrent. Cyllid untro'n unig yw'r arian am y flwyddyn eleni, ac mae'r cyllid recurrent i gyrraedd yn 2028-29. Mae adroddiad Archwilio Cymru, sy'n cael ei grybwyll yn ein gwelliant ni, yn rhoi darlun clir o system sy'n rhoi straen gynyddol ar ein hawdurdodau lleol. Mae gwariant awdurdodau lleol ar ddarpariaeth anghenion dysgu ychwanegol bellach yn tynnu tuag at o leiaf £1 biliwn y flwyddyn. Ar ben hyn, yn ôl yr adroddiad, does gan y system ddim trefniadau cadarn ar gyfer casglu data, does gan gyrff cyhoeddus ddim dealltwriaeth iawn o'r costau, ac mae anghysondeb mawr o ran darpariaeth a mynediad teg. Mae gwaith mawr o flaen y Llywodraeth i daclo'r diffygion yma i gyd a chreu cyfundrefn llawer mwy effeithiol a chynaliadwy.
Official English translation
Dirprwy Lywydd, thank you for the opportunity to respond to this debate, as these are such important matters for children, families and schools across Wales. I want to begin by making it clear that this Government has made a commitment to children and young people with additional learning needs. We adopt a strategic approach to make the ALN system sustainable, a system that truly tackles the fundamental challenges rather than responding to short-term pressures. Our manifesto includes a suite of measures to this end, and the Cabinet Minister for education is already working on priorities for additional learning needs, practical and financial measures. This is a complex matter and it demands a series of complex responses, and that's why the Government has tabled its amendment today. First of all, I want to deal with the basic assumption that underpins this motion. It suggests that the funding that we receive as a result of decisions made in England should be allocated to the same policy area in Wales. That's not how devolution works. It's Welsh Ministers who are responsible for deciding how funding is earmarked. That's exactly how the previous Welsh Government worked, and that's how this Government will operate too. Secondly, Dirprwy Lywydd, we must be clear about the nature of this specific consequential funding. The consequential funding received does not reflect new investment to improve services in England. It's funding that the United Kingdom Government has allocated to tackle historical financial deficits that had accumulated in local authorities in England with regard to additional learning needs. In England, therefore, this additional funding is not going towards supporting special educational services, and the consequential is not recurrent. It's one-off funding for this financial year, and the recurrent funding is to arrive in 2028-29. The Audit Wales report, referred to in our amendment, provides a clear picture of a system that places increasing strain on our local authorities. Local authority expenditure on additional learning needs provision now approaches at least £1 billion per annum. Moreover, according to the report, the system does not have robust arrangements for gathering data, public bodies do not have a full understanding of the costs, and there are major inconsistencies when it comes to provision and fair access. There is a major task ahead for the Government to tackle these multiple deficiencies and to create a far more effective and sustainable system.
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As a Government, we recognise and agree with the analysis outlined by Lynne Neagle in introducing this debate. You know better than most, Lynne, of the pressures within our schools and within additional learning needs in contributing to that. We agree that the solution needs to start this financial year, but it does not necessarily need a supplementary budget to start this work; it is already under way, as I said, by the Government Minister. It is important at this point, I think, to rehearse again what the resource allocations proposed in this supplementary budget are. It is an addition of £164 million resource only within year, the largest part of which is the £100 million to the NHS to reduce waiting times. Whilst its use will be different to the previous Government's way of tackling waiting lists, it is inherently the same quantum as spent by the previous Labour Government on a waiting list initiative that was brought to an abrupt end just before the election. The second largest allocation is to childcare: £45 million. Let's break down this £45 million. It is made up of three parts: £18 million to fully fund the commitment made by the previous Government and unfunded in the budget passed on to us; another £7 million is for a workforce rates increase commitment made by the previous Government, but unfunded; and only a £20 million allocation to start the roll-out of Plaid Cymru's additional childcare provision. Next comes the transport resource allocation of £10 million: £8 million of this to extend the young person's £1 bus fare pilot until the end of March, which was started by the previous Labour Government, with Lib Dem support, and now continued by this Government; then, £2 million is for the north-south bus route—again, a plan started by the previous Government. Indeed, the eight buses for this route were purchased by the previous Government's transport Minister. Plaid Cymru's contribution in this supplementary budget is to allocate resource funding to put drivers in the buses. The final part of the supplementary budget is a £9 million allocation to priorities primarily identified as Plaid Cymru manifesto commitments: secondary school free school meals; Cynnal, the child poverty payment; and a school swimming programme. This only accounts for £9 million of the £164 million resource allocation. In voting for this motion today, are Members asking this Government only to reallocate this £9 million to ALN education, or the total of £344 million to ALN, as proposed by Mike Hedges? Or are you saying, as Members, that you do not want us to spend on reducing waiting lists at all, not to spend on childcare commitments made by Labour in Government, not to carry on the £1 bus fare for young people, for where else does the money come from? And here we come to the crux of this Government's financial position, as inherited from the previous Government. So, yes, when I became finance Minister, I was told that there was a one-off non-recurrent consequential of over £300 million to the Welsh budget as a result of local authority debt write-off in England. But, at the same time, I was told that there were unfunded in-year financial pressures in the budget that I inherited of over £300 million in the NHS and more elsewhere, including childcare, as I have already outlined. So, in one fell swoop, I was both up £300 million and down £300 million. This is why the supplementary budget includes £246 million of unallocated resource to deal with in-year pressures. Now, careful consideration will be given to the prioritisation of the unallocated funding over the next few months, but it is too early to do so yet, in this first supplementary budget, only two months into this new Government. And things can change over the next months. In fact, they've already changed since my appearance in front of the Finance Committee yesterday morning. Yesterday's UK defence investment plan by the Labour UK Government is to have a negative consequential on our capital budget. Our estimate of a 1 per cent cut in UK Government capital budgets, if it were applied evenly across all UK departments, would lead to a reduction of at least £25 million to £30 million in the Welsh Government's capital budget this financial year, with further similar reductions in future years up to 2029-30. This will cumulatively be significant for the Welsh Government's budget, not miniscule, as some have suggested, with a direct impact on schools, hospitals and transport investment. We also know that the UK Government has indicated there is a further £4.7 billion to be found at the autumn budget. So, this £25 million to £30 million is the minimum cut we can expect to face. It could be cut further within this financial year. I suspect that the die is already cast on the vote on this motion today. Over my time in this Senedd, I have seen many alliances and coalitions come and go. It seems today that we may well see the birth of a new grand alliance in this Senedd's seventh term: an alliance of right-left-right, a broader church alliance than ever seen before, an alliance forged from political opportunity for some behind me, rather than shared values. I urge all Members to support the Government amendment. I finish with a genuine offer to interested parties in this Chamber to use this moment, to use this focus on additional learning needs, and to work with us on these benches to design, with local authorities, a sustainable, affordable plan for additional learning needs that provides better outcomes for our young people, and to do so in a long-term, impactful way.
33
Open this sitting on the stage
2. Questions to the Cabinet Minister for Finance cy
Diolch, Lywydd, am roi cyfle i fi yn syth i gywiro'r Cofnod o'r datganiad ar y gyllideb atodol ddoe. Yn ystod y drafodaeth, defnyddiais ddau ffigur gwahanol mewn camgymeriad ar gyfer lefel y cyfalaf heb ei ddyrannu—yn gyntaf, yn gywir, y ffigur o £29,000, ac, yn ail, y ffigur o £29 miliwn. Y ffigur cywir, felly, yw £29,000. Yn ogystal, yr amcangyfrif presennol ar gyfer ffigur cyfalaf sy'n weddill yng nghronfa wrth gefn Cymru ar hyn o bryd yw £50 miliwn. Rwy'n gobeithio bydd y Senedd yn derbyn fy ymddiheuriad am y camgymeriad yna, ac rwy'n ysgrifennu atoch chi hefyd ar wahân, Lywydd, i sicrhau bod y cywiriad yn cael ei osod ochr yn ochr yn y Cofnod ddoe.
Official English translation
Thank you, Llywydd, for giving me an opportunity to correct the Record in terms of the statement on the supplementary budget yesterday. During the discussion, I used two different figures in error for the level of unallocated capital—the first, which was correct, a figure of £29,000, and, secondly, the figure of £29 million. The correct figure is £29,000. In addition, the current estimate for the capital remaining in the Welsh reserve is £50 million. So, I hope that the Senedd will accept my apology for that error, and I will write to you too, Llywydd, separately, to ensure that that correction is placed in the Record of Proceedings for yesterday.
2. Questions to the Cabinet Minister for Finance cy
Yn fy nghyfarfod cyntaf â Phrif Ysgrifennydd y Trysorlys yr wythnos diwethaf, fe wnes i bwysleisio bod diwygio cyllidol, gan gynnwys cyllid tecach, a diwygio'r fformiwla Barnett, yn flaenoriaethau allweddol. Fe gytunom y byddem yn gweithio gyda'n gilydd mewn ffordd adeiladol i sicrhau canlyniadau gwell i bobl Cymru.
Official English translation
During my first meeting with the Chief Secretary to the Treasury last week, I emphasised that fiscal reform, including fair funding and addressing the Barnett formula, are key priorities. We agreed that we would work constructively together to deliver better outcomes for the people of Wales.
2. Questions to the Cabinet Minister for Finance en
Yes, and, as I said, I met with the Chief Secretary to the Treasury last week. She was even newer in her post than I am. I'm not sure how long, given possible Treasury reshuffles in the future, she will be in that post, but I wish her well. We had a positive discussion and I was able to outline this Government's position on a need to have a constructive conversation with the UK Government to ensure that we have a funding settlement for Wales that is fairer than we have at the moment, and that this judge, jury and executioner that you referred to is put right. The Barnett formula is opaque in nature, it lacks transparency, but, almost more than anything, when there are disputes—of which there have been many and may be many in the future—there is no dispute resolution mechanism that is independent of the UK Treasury. And this is nowhere more obvious than, of course, the UK Treasury's classification of HS2 as an England and Wales project. It decided that that was the case, despite there not being a single piece of track of HS2 in Wales, and it sticks to that position to this day. And it means that, in this current spending review period, Wales is short-changed by £850 million just in this one spending review period because of that classification of HS2, because of the UK Treasury acting as judge, jury and executioner.
2. Questions to the Cabinet Minister for Finance en
You've almost answered your own question within your question. The difference for people in Flint and Wrexham that would be made by a fair funding settlement, by having that £850 million short-changed currently from the current spending review that I spoke of because of the classification, the wrong classification, of HS2 by the UK Treasury, that would actually have allowed the previous Government, as well as this Government, to be spending on that exact rail investment that you asked for in Flint and Wrexham. It would never be money for Cardiff Bay; it would always be money for the whole of Wales, fairly shared by this Government to every part of Wales.
2. Questions to the Cabinet Minister for Finance en
Well, we know that as a result of the review of fairness and the needs-based analysis of the Barnett formula from 2016 onwards that that has been of benefit to the public purse in Wales. But, as I've said already, the analysis of this Government, as it was of the previous Government, is that, in this spending review period, we are short-changed on just the HS2 classification by £850 million. And I'm sure that you would want to see part of that funding spent in your constituency, just as I would like to see it spent in mine.
2. Questions to the Cabinet Minister for Finance cy
Cafodd asesiad effaith rheoleiddiol ac asesiad effaith integredig eu cyhoeddi ochr yn ochr â'r ddeddfwriaeth yn y Senedd ddiwethaf. Mater i'r awdurdodau lleol yw penderfynu nawr a ydyn nhw am gyflwyno ardoll yn eu hardaloedd, yn seiliedig ar eu hasesiadau eu hunain o'r effeithiau ac yn dilyn ymgynghori â'u cymunedau. Hyd yma, nid yw sir Gaerfyrddin wedi cynnal ymgynghoriad ynglŷn ag a ddylid cyflwyno’r ardoll yma.
Official English translation
A regulatory impact assessment and an integrated impact assessment were published alongside the legislation in the previous Senedd. It's a matter for local authorities to decide now whether they introduce the levy in their area, based on their own assessments of the impacts and following consultation with their communities. To date, Carmarthenshire has not consulted on whether to introduce this levy.
2. Questions to the Cabinet Minister for Finance en
This policy is now passed over to local authorities. They have the discretion to introduce or not the visitor levy in their areas, and there are requirements of any local authority that's interested in introducing a visitor levy to undertake those assessments that she speaks of. If your constituents have views, negative or positive, about the visitor levy, should there be, at any time, a consultation in sir Gâr about the introduction of a visitor levy, I'm sure that it will be an active and engaged consultation. It is now over to local authorities to decide on whether this is a good thing or not for their local areas.
2. Questions to the Cabinet Minister for Finance en
Now, you started well and then you posed me probably one of the most difficult questions I will get as Minister—to compare myself to Mark Drakeford. I have huge respect for him, as he knows, and as this Chamber will know. There is a level of truth in both our positions, I suspect. For clarity, therefore, Plaid Cymru's role in the decision and voting on the previous budget was to share a responsibility on part of the allocation of that budget. So, we were able to agree with Labour that a significant part of that allocation would go to local authorities to increase their ability to spend, and also to the NHS. What was unseen by me and fellow Members of Plaid Cymru at the time—and, in fact, all non-Government Members of the Senedd at the time—was the in-year pressures that even an allocation of that nature would lead to in terms of what the NHS and local authorities and other public sector organisations would need. That's what I'm looking at now, and that's what I can see now, is the level of in-year pressures that our NHS in particular is carrying and is reporting. If you look at local health boards in their monthly reports, the level of in-year pressures that they are working on, and how we as a Government are working with health boards to ensure that they are able to deliver the efficiencies in what they do in year, to mean that they are able to work within the budget that has been allocated to them.
2. Questions to the Cabinet Minister for Finance en
I'm intrigued, and I think Mark Drakeford will be even more intrigued, to know that his chief cheerleaders in this Chamber, in the seventh Senedd, are Reform. I'm sure that he'll welcome that. We did not have full and open access to the books, and we probably—and I would expect that opposition parties here today—would not expect that. The detailed management, day to day, of the operation of the public budget in Wales is within the Government and scrutinised by the Senedd.
2. Questions to the Cabinet Minister for Finance en
We want to see equality between ourselves and Scotland in the powers and levers that we have. Prudent borrowing for any country, for any company, is not a bad thing. It allows a Government to invest. Investment of that kind is a component of getting our economy going and also of improving our public services, our hospitals and our schools. Therefore, prudent borrowing is the right thing to do. What I don't want to see is that we are hampered unilaterally from doing that by UK Treasury rules that apply in an unequal way for us compared to other countries, or even other regions in England. I want that equality. It would be for the Government of the day to use that prudently and to be scrutinised here in the Chamber on its use.
2. Questions to the Cabinet Minister for Finance en
No. From one supplementary budget, which is about part of the in-year adjustment of this Government's spending allocations, the people of Wales and nobody in this Chamber should, for one second, interpret that as a lack of commitment to climate change and to pursuing our net-zero objectives. We are clear that that is a cross-Government initiative and that we will work across Government on how we contribute to tackling climate change and to achieving net zero. In that respect, I accept that it didn't feature in any of our additional resources. It is, of course, funded within the budget that we are operating and that was inherited from the previous Senedd. We will look at this across Government properly in order to align our future years' budgets to progressing what remains one of our main manifesto commitments, and that is to achieve net zero and to ensure that we are able to contribute our bit as Wales in tackling climate change, which is affecting our everyday lives.
2. Questions to the Cabinet Minister for Finance cy
Cyn lleied â phosib, byddwn i'n dweud. Dwi eisiau gwario arian y Llywodraeth yma ar ganlyniadau sy'n deillio allan o'r gwaith paratoi yma. Dwi'n siŵr y byddwch chi'n rhannu gyda fi yr awydd, wrth i ni ddatblygu polisïau newydd neu weithredu polisïau presennol yn fwy effeithiol, ein bod ni'n gwneud hynny ar ôl ymgynghori a thrafod a derbyn y dystiolaeth fwyaf diweddar. I wneud hynny, mae'n rhaid i ni gymryd rhywfaint o amser a rhywfaint o waith i ddatblygu’r cynlluniau hynny. Felly, dwi ddim eisiau iddo fe gostio mwy o arian nag amser nag sydd yn rhaid iddo fe wneud, a'n bod ni yn symud yn gyflym i fedru gweithredu ar yr hyn sy'n bwysig o ran effeithiolrwydd y polisïau cyhoeddus hynny, a chyflwyno syniadau a momentwm newydd i bolisïau yn y sector cyhoeddus yng Nghymru.
Official English translation
As little as possible, I would say. I want to spend the Government's money on outcomes that stem from that preparatory work. I'm sure that you would share with me the desire, as we develop new policies or implement current policies more effectively, that we do that after consultation and discussion and receiving the most recent evidence. To do that, we have to take some time and we have to do some work to develop those plans. So, I don't want it to cost more money or time than it needs to, and I want us to move quickly to be able to take action on what's important in terms of the effectiveness of those public policies, and introducing new ideas and momentum to policies in the public sector in Wales.
2. Questions to the Cabinet Minister for Finance en
The Welsh Government is currently considering whether it will do so or not.
2. Questions to the Cabinet Minister for Finance en
Well, you've raised many of the considerations that the Government is looking at at this time, when it considers its position on the revaluation and any further changes to council tax. We are committed as a Government to look to see how council tax can be made fairer. It is not the most progressive of taxes that are raised in Wales, and we need to make sure that it is as fair as possible for the taxpayers in Wales. There is, in legislation, a revaluation that is planned for 2028, and if it's to be completed by 2028, then it would need to start pretty soon. So, there is some early work that we need to do in taking decisions on this. But I would see that any revaluation or council tax changes that happen in Wales are done so not on the basis that they need to be there to raise more revenue for the public purse in Wales, but that they are to make the council tax fairer in Wales. It's not a revenue-raising exercise. I would not see it as that, but it is about making the payment of taxes fairer for people in Wales. I agree also that if these changes are to happen, then they need to be done with caution, and with ensuring that people are consulted fully and are aware at all times of the implications of any changes to them directly. We know that council tax is a very immediate tax on people—it arrives on their doorstep every year—and we need to make sure that people are engaged early on, if there are to be changes to this tax.
2. Questions to the Cabinet Minister for Finance cy
Mae trethi lleol yn helpu i dalu am wasanaethau pwysig ledled Cymru, gan gynnwys yng Ngheredigion Penfro. Bydd y Llywodraeth hon hefyd yn diwygio ardrethi busnes i gefnogi busnesau'r stryd fawr yn well ac archwilio ffyrdd o wneud y dreth gyngor yn decach.
Official English translation
Local taxes help to pay for vital public services across Wales, including in Ceredigion Penfro. This Government will also reform business rates to better support high-street businesses and explore ways of making council tax fairer.
2. Questions to the Cabinet Minister for Finance cy
Un peth sy'n fantais o fod wedi sefyll etholiad yn yr un etholaeth â Paul Davies yw fy mod i hefyd wedi pigo lan yr un sylwadau hynny o'r sector lletygarwch a'r sector twristiaeth. Felly, mae yna nifer o agweddau ar waith y Llywodraeth yma—rhai dwi'n gyfrifol amdanynt—yn mynd i fynd ati nawr i edrych ar sut gallwn ni fod yn gwella'r amodau neu'r pwysau mae'r sectorau pwysig yma yn eu hwynebu. Byddwch chi'n gwybod bod yna ymrwymiad ym maniffesto Plaid Cymru i, er enghraifft, edrych ar y rheol 182 o ddyddiau sydd yn wynebu'r sector hunanddarpar ar hyn o bryd. A byddwn ni'n edrych i gymryd camau i asesu hwnnw ac i asesu a ydy hi'n bosib neu yn ddymunol nawr i fod yn cyflwyno eithriadau cenedlaethol ychwanegol. Byddwn ni'n symud ymlaen gyda'r gwaith yna, ac, fel y dywedais i yn fy ateb blaenorol, yn sicrhau ein bod ni hefyd yn edrych ar sut mae ardrethi busnes yn cael eu diwygio er mwyn gwella hinsawdd economaidd y sectorau yna rydych chi wedi eu hamlinellu a'r stryd fawr yn enwedig.
Official English translation
One advantage of having stood for election in the same constituency as Paul Davies is that I have also picked up on those same comments from the hospitality and tourism sectors. So, there are a number of aspects of the work of this Government—some of which I'm responsible for—that are going to set about looking at how we can improve the conditions or the pressures that these important sectors are facing. You will know that there is a manifesto commitment from Plaid Cymru, for example, to look at the 182-day rule facing the self-catering industry currently. And we will be looking to take action to assess that and to assess whether it is possible or desirable to introduce additional national exemptions. We'll be moving forward with that work, and, as I said in my previous response, ensuring that we look at how business rates are reformed in order to improve the economic climate of the sectors that you've mentioned, particularly the high street.
2. Questions to the Cabinet Minister for Finance cy
Ie, diolch am y cwestiynau yna yn ychwanegol. Fel rŷch chi'n amlinellu, mae cael y balans yn iawn ar rai o'r polisïau yma yn bwysig iawn, fel nad yw'r pwysau ar y sector lletygarwch a'r sector hunanddarpar yn ormodol i ganiatáu iddyn nhw gario ymlaen yn eu busnes, fel gwnaeth Paul Davies sôn, ond hefyd fod yr angen i sicrhau bod neb yn gallu cymryd mantais o'r system dreth a'r rheolau sydd gyda ni. Felly, mae cael y balans yn iawn yn bwysig. Rydyn ni, fel Llywodraeth, ac fe fyddaf i fel Gweinidog, yn symud ymlaen yn weddol o gyflym nawr i edrych ar sut rŷn ni'n asesu'r polisi yma. A dwi'n rhoi cynnig agored i Aelodau yn y Senedd yma, sydd wedi bod yn canfasio dros y misoedd diwethaf yma, i fod yn rhoi eu sylwadau i fi a'u syniadau i fi o ran sut mae'n bosib inni fod yn newid rhai o'r polisïau yma er lles y sector twristiaeth, ond hefyd sydd yn deall nad oes unrhyw loopholes newydd yn cael eu hagor wrth ddiwygio ymhellach y polisïau yma. Felly, dwi'n gobeithio clywed syniadau oddi wrth Aelodau—byddwn i'n gwerthfawrogi hynny.
Official English translation
Yes, thank you for those supplementary questions. As you outline, striking the right balance on some of these policies is very important indeed, so that the pressures on the hospitality and self-catering sectors aren't too great, which means they're unable to continue with their business, as Paul Davies mentioned, but there is also the need to ensure that no-one can take advantage of the taxation system and the regulations that we have in place. So, striking that right balance is important. We as a Government, and I as Minister, will be progressing quite swiftly now to look at how we assess this policy. And I am making an open offer to Members of this Senedd, who have been canvassing over recent months, to provide their comments and ideas to me in terms of how we could change some of these policies for the benefit of the tourism sector, whilst also understanding that any new loopholes shouldn't be opened as we reform these policies further. So, I hope to hear ideas from Members and I would appreciate that.
2. Questions to the Cabinet Minister for Finance cy
Diolch am y cwestiwn yna eto ar Geredigion Penfro. Wrth gwrs, wrth i ni ymrwymo i asesu nifer fawr o'r agweddau ar y polisïau sy'n effeithio ar fusnesau ac ar y sector tai—fel y dreth gyngor, fel ardrethi busnes, fel y rheol 182—fe fyddwn ni'n gwneud hynny drwy asesu'n llawn impact y newidiadau mwyaf diweddar a'r hyn y gallwn ni fod yn ei gyflawni er lles rhai o'r sectorau pwysig yma yn ein heconomi ni. Felly, bydd yr asesiad yna, fel rŷch chi'n ei amlinellu fe, yn bwysig iawn i'w gyflawni.
Official English translation
Thank you for that question again on Ceredigion Penfro. Of course, as we commit to assessing many aspects of the policies affecting businesses and the housing sector—such as council tax, such as business rates, such as the 182-day rule—we'll be doing that with a full impact assessment of the most recent developments and what we can deliver for the benefit of these very important sectors in our economy. So, that assessment, as you outline, will be important to deliver.
2. Questions to the Cabinet Minister for Finance cy
Er mai cyfrifoldeb y Gweinidog Cabinet dros Wydnwch Gwledig a Chynaliadwyedd yw'r cynllun ar gyfer Cymru sero net, mae'n ymrwymiad i'r Llywodraeth gyfan. Bydd penderfyniadau buddsoddi strategol yn cael eu gwneud ar y cyd, felly, wrth i ni baratoi ar gyfer cyllideb yr hydref.
Official English translation
Although the plan for a net-zero Wales is the responsibility of the Cabinet Minister for Rural Resilience and Sustainability, it's a commitment for the entire Government. Strategic investment decisions will be made jointly, therefore, as we prepare for the autumn budget.
2. Questions to the Cabinet Minister for Finance en
Well, certainly not by just simplistic financial measures, and I say that as the Minister for Finance. As I said in an earlier response, the responsibility to meet our net-zero objectives is a responsibility that cuts across all Government Ministers and departments, and we want to see a truly engaged and innovative approach to how we invest every single pound of the Welsh budget to ensure that they are long-term, good investments, to mean that our impact on our climate is less than it needs to be. Because that investment will make a difference not just in terms of achieving net zero, which is an objective—a high-level objective—that a government needs to have, but also it makes a difference to everyday lives in Wales. So, it can mean that people may have more efficient, healthier housing, for example, and it can mean that our businesses can have cheaper electricity costs to run their businesses. So, it is truly a cross-cutting piece of work for this Government, and it needs to feature prominently, and it will, in our budget-setting process for the future.
2. Questions to the Cabinet Minister for Finance en
Yes. Most definitely, the cost of bad decisions should never be borne by those least likely, least able to afford to pay those costs, and they should be borne by those people who have initially transgressed. In our manifesto, we're committed to establishing a just transition board to guide the net-zero strategy, and this will bring together relevant experts, ensuring key stakeholders have a meaningful role in shaping policy. The Cabinet Minister for Rural Resilience and Sustainability will be making an early announcement on the just transition board that seeks to achieve the very things that you've outlined to do.
2. Questions to the Cabinet Minister for Finance en
You'll know that the responsibility lies with the Minister for enterprise and energy on matters of renewable energy and infrastructure in Wales. The Minister, who happens to be one of the Members for the area that you also represent, in line with Plaid Cymru's manifesto commitments, will be making new policy on renewable energy in Wales and the deployment of infrastructure, and the expectations that this Government will have from it. That will give clarity as to how we see renewable energy needing to play a very positive role in our need to, yes, achieve our net-zero commitment, but also to make us less dependent on fossil fuels and oil and gas markets in the middle east. We know how vulnerable they are and how many of these issues mean that Wales as a country is less self-reliant in energy production. We need to increase our energy production in Wales from sources that can be trusted into the future, and not the sources of the past.
2. Questions to the Cabinet Minister for Finance cy
Mae sicrhau cyllid teg ar gyfer rheilffyrdd Cymru a mynd i'r afael ag anghyfiawnder HS2 yn flaenoriaeth bwysig iawn i ni. Mae Llywodraeth y Deyrnas Gyfunol wedi cydnabod nad yw'r seilwaith rheilffyrdd yng Nghymru wedi derbyn digon o gyllid yn y gorffennol, felly mae'n bryd gweithredu. Fe godais i hyn gyda Phrif Ysgrifennydd y Trysorlys yr wythnos diwethaf.
Official English translation
Securing fair rail funding for Welsh railways and addressing the HS2 injustice is a very important priority of ours. The UK Government has recognised that rail infrastructure in Wales has not been historically funded properly, and therefore it’s time to take action. I raised this when I met with the Chief Secretary to the Treasury last week.
2. Questions to the Cabinet Minister for Finance en
I can certainly commit to intensifying those discussions. I hope that the UK Government can also commit to that level of intensity of discussions that we need to have. We need to reach a place between the UK Government and the Welsh Government where we are not constantly having to discuss whether a funding allocation is fair or not. We need clarity and transparency, and we need also that independent arbiter to enable the people to know where the fair allocation would be received. As I said earlier this afternoon, the classification of HS2 as an England and Wales project is meaning at this point in this current UK spending review period that Wales is shortchanged by £850 million, and, over further spending periods, that will only increase. So, we need to get this right. There are at least, probably, four parties, five parties in this Senedd that agree that that’s an underfunding of Wales, and we need to use that cross-party leverage to ensure that we get to a better place in order to ensure that the people of Wales are not disadvantaged.
2. Questions to the Cabinet Minister for Finance cy
Roedd ein maniffesto yn cynnwys ymrwymiad i barhau i adolygu’r trothwy gosod o 182 diwrnod ac i greu eithriadau newydd rhesymol lle na fyddai llety hunanddarpar yn gymwys i fod yn gartref preifat. Fe fyddaf i’n amlinellu rhagor o fanylion am ein cynigion ar hyn maes o law.
Official English translation
Our manifesto included a commitment to keep the 182-day letting threshold under review and create reasonable new exemptions where self-catering accommodation would not qualify as a private home. I will set out further details on our proposals in due course.
2. Questions to the Cabinet Minister for Finance cy
Dwi eisoes, fel Gweinidog cymharol newydd o hyd, wedi cychwyn ar y gwaith o drafod sut y gallwn ni fynd ati i adolygu'r trothwy gosod 182 diwrnod ac i feddwl a oes angen eithriadau newydd cenedlaethol i'r polisi yma. Dwi'n gwybod bod y polisi heb landio yn y lle cywir ar hyn o bryd a bod angen yr adolygiad hwnnw, ac felly dwi wrthi nawr yn trafod opsiynau ynglŷn â sut y medraf ddod i gasgliad i gymryd penderfyniad ar sut mae adolygu hyn a chynnwys y Senedd yma ac, yn bwysicach, y sectorau perthnasol yn y drafodaeth ehangach am beth fyddai'r diwygiadau mwyaf effeithiol ar gyfer y polisi yma.
Official English translation
I have already, as a relatively new Minister still, started the work of discussing how we can move ahead in reviewing the 182-day threshold and to consider whether new exemptions are required on a national level in relation to this policy. I know that the policy hasn't landed in the right place at the moment and that we do need that review, and so I am currently discussing options as to how I can come to a conclusion and make a decision as to how we should review this, and I will include this Senedd and, more importantly, the relevant sectors in the wider debate as to what the most effective reforms of this policy would be.
2. Questions to the Cabinet Minister for Finance cy
Mae Gweinidog y Cabinet dros Lywodraeth Leol, Tai a Chynllunio yn bwrw ymlaen ag adolygiad o'r fformiwla cyllido llywodraeth leol mewn partneriaeth â llywodraeth leol.
Official English translation
The Cabinet Minister for Local Government, Housing and Planning is taking forward a review of the local government funding formula in partnership with local government.
2. Questions to the Cabinet Minister for Finance en
Making sure that the local government formula does reflect adequately the various characteristics that our different local authorities have is important to this Government, and making sure that we understand wholly from local government and from councils how the current formula is working, either to their advantage—I suspect they won't be as upfront about that—or to their disadvantage, as you've outlined for Conwy. The Cabinet Minister for local government will be the person having this open conversation with local government as to how this funding formula can be reformed in a way that meets the various needs and requirements of disadvantage and sparsity that our wonderfully varied country of Wales has. We need to get to that place soon as a Government, and those discussions are happening now. Within our 100-day commitment as well, we have a commitment to align policies with rural-proofing and we need to ensure that any changes to the local government formula would do so in step with our alignment to rural-proofing.
2. Questions to the Cabinet Minister for Finance cy
Roedd y gyllideb atodol gyntaf, a gyhoeddwyd ddoe, yn darparu £164 miliwn o gyllid refeniw a £130 miliwn o gyllid cyfalaf ychwanegol i'n blaenoriaethau allweddol. Mae hyn yn cynnwys £145 miliwn i'r NHS yng Nghymru i dorri rhestrau aros ac adeiladu gwasanaeth iechyd a gofal sy'n addas ar gyfer y dyfodol.
Official English translation
The first supplementary budget, published yesterday, provided an additional £164 million revenue and £130 million capital funding to our key priorities. This includes £145 million for NHS Wales to cut waiting lists and build a health and care service fit for the future.
2. Questions to the Cabinet Minister for Finance en
I didn't divert a single penny away from additional learning needs in yesterday's supplementary budget. The allocation for additional learning needs and for schools was voted on by the Senedd, introduced by the Labour Government and supported in part by Plaid Cymru in the previous Senedd. That allocation remains in full to local authorities in Wales. We are committed, because of the pressures, as you've outlined, on additional learning needs and on our schools, to working to design a service and fund it so that we are better prepared for the challenges and the delivery of additional learning needs in Wales. It is not a competition for funding; there is funding needed to run a variety of public services and public infrastructure in Wales. We seek to strike the right balance and we will listen to views across this Chamber on where that balance needs to be struck.
2. Questions to the Cabinet Minister for Finance en
My fault.
2. Questions to the Cabinet Minister for Finance cy
Cadarnhawyd symiau canlyniadol ychwanegol cynllun Cartrefi Cynnes Llywodraeth y Deyrnas Gyfunol yng nghyllideb yr hydref 2025. Bydd Cymru'n derbyn £17 miliwn yn 2026-27, £26 miliwn yn 2027-28, £26 miliwn yn 2028-29 a £17 miliwn yn 2029-30.
Official English translation
The consequentials from the UK Government's Warm Homes plan were confirmed in the autumn budget 2025. Wales will receive £17 million in 2026-27, £26 million in 2027-28, £26 million in 2028-29 and £17 million in 2029-30.
2. Questions to the Cabinet Minister for Finance en
You've outlined the aspiration that you have for the Warm Homes work that needs to happen in Wales and the benefits that it can reap for households throughout Wales. I outlined in my original answer the consequentials we've already received as a Government. They fall significantly below the estimate that you've contributed this afternoon. That in itself outlines what I've said throughout my question session this afternoon: the opaque nature of how the Barnett formula and consequentials work, and how that, across UK Government departments, can mean very different things in how it comes through to Wales. But I will discuss with the Cabinet Minister for housing the true level of consequentials required for this area of work, to ensure that we consider clearly whether we have received the correct consequentials and what further representations we would need to make if that wasn't the case.
14
Open this sitting on the stage
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 cy
Diolch yn fawr, Ddirprwy Lywydd. Mae’n bleser gen i heddiw gyflwyno cyllideb gyntaf tymor y Senedd newydd yma, a’r un gyntaf erioed gan Lywodraeth Plaid Cymru. Fe ddywedon ni cyn yr etholiad y byddem ni’n cyhoeddi cyllideb o fewn ein 100 diwrnod cyntaf, a dyma ni’n cadw at yr addewid hynny. Rŷn ni’n Llywodraeth newydd, ac mae gennym ni flaenoriaethau ac uchelgeisiau newydd. Fe gawson ni ein hethol gyda mandad clir ar gyfer newid. Y gyllideb atodol hon yw’r cam cyntaf i sicrhau ein bod ni’n gallu gwireddu ein prif flaenoriaethau fel Llywodraeth.
Official English translation
Thank you, Dirprwy Lywydd. It is my pleasure today to present the first budget of this new Senedd term and the first ever budget by a Plaid Cymru Welsh Government. We said before the election that we would publish a budget within our first 100 days, and here we are keeping to that promise. We are a new Government and we have new priorities and ambitions. We were elected with a clear mandate for change. This supplementary budget is the first step in making sure that we are able to deliver on our top priorities as a Government.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 cy
Rŷn ni wedi etifeddu sefyllfa ariannol heriol, ac rŷn ni’n wynebu pwysau sylweddol ar draws y sector cyhoeddus. Cyllideb atodol yw hon—cyllideb o fewn blwyddyn ariannol. Fe rydym felly wedi dewis anrhydeddu y gyllideb bleidleisiwyd drosti ym mis Ionawr, cyllideb sydd eisoes ar waith gan ein byrddau iechyd, ein cynghorau sir, ein cyrff cenedlaethol a’r sector wirfoddol a busnes. Nid dadsefydlogi yw pwrpas y gyllideb yma, ond cychwyn ar osod cyfeiriad newydd ar wariant cyhoeddus yng Nghymru, i gyd-fynd â’r blaenoriaethau bleidleisiodd pobol Cymru drostynt ym mis Mai. Fel y soniais, mae’r sefyllfa ariannol yn heriol ac mae’r pwysau ariannol o fewn y cyllidebau yn sylweddol, yn enwedig y gwasanaeth iechyd. Dyna pam fod y gyllideb yma yn cadw arian heb ei neilltuo i’n caniatáu i reoli’r pwysau ariannol o fewn y flwyddyn. Mae’r arian canlyniadol i’r gyllideb o waredu dyledion addysg arbennig llywodraeth leol yn Lloegr, ynghyd â’r arian wrth gefn ar ddechrau blwyddyn ariannol, yn caniatáu i’r Llywodraeth yma glustnodi arian ychwanegol heddiw tra’n cadw golwg ar y pwysau ariannol sy’n parhau o fewn ein sector gyhoeddus. Siaradais ag arweinydd llywodraeth leol yng Nghymru wythnos diwethaf i esbonio na fydd cynghorau yn derbyn yr arian un-tro i waredu dyledion addysg arbennig a gronnwyd gan lywodraeth leol yn Lloegr, gan nad yw’r dyledion hynny yn bodoli yn yr un modd yng Nghymru. Rŷn ni’n derbyn, wrth gwrs, y pwysau ariannol ar lywodraeth leol ac yr ydym yn arbennig o awyddus i weithio gyda chynghorau ac eraill i gynllunio gwasanaethau pwrpasol addysg arbennig sy’n cwrdd yn well ag anghenion y plant a’r teuluoedd, tra hefyd yn gynaliadwy yn ariannol i’r hirdymor. Bydd arian canlyniadol ar addysg arbennig yn dod i’r gyllideb o bosib yn 2028-29, ac yn wahanol i’r arian un-tro eleni, bydd hwnnw yn arian cylchol. Drwy weithio’n ofalus o fewn proses y gyllideb flynyddol y mae cynllunio addysg arbennig ar sylfaen fforddiadwy, gynaliadwy i’r dyfodol. Dyw’r gyllideb atodol hon ddim wedi ei chynllunio i gyflawni popeth, ond fel cam cyntaf tuag at sicrhau bod ein cynlluniau gwario yn cyd-fynd â’n maniffesto. Rwyf heddiw yn cadarnhau £294 miliwn o arian ychwanegol: £164 miliwn o gyllid adnoddau a £130 miliwn o gyllid cyfalaf. Rŷn ni’n blaenoriaethu arian ychwanegol i leihau amseroedd aros y gwasanaeth iechyd. Mae hyn yn cynnwys £100 miliwn o gyllid adnoddau, £25 miliwn o gyllid cyfalaf i ddatblygu hybiau llawfeddygol a diagnostig newydd ledled Cymru, ac £20 miliwn ychwanegol o gyfalaf i wneud gwaith cynnal a chadw yn y gwasanaeth iechyd. Mae hwn yn fuddsoddiad o £145 miliwn yn ein system iechyd i gyflymu triniaethau a gwella canlyniadau i bobl Cymru. Does dim amheuaeth bod angen mynd ati ar unwaith i leihau’r rhestrau aros sydd wedi cronni, ond rhaid inni hefyd sicrhau ein bod ni’n cadw'r rhestrau aros i lawr yn barhaol. Dyna pam rŷn ni hefyd am ddiwygio’r system yn strwythurol, i adeiladu capasiti hirdymor. Rŷn ni wedi bod yn gwbl glir mai un o’n prif flaenoriaethau yw mynd i’r afael â thlodi plant a chefnogi pobl yng Nghymru gyda chostau byw cynyddol. Bydd £55 miliwn ychwanegol yn golygu y gallwn ni wneud cynnydd buan ar ein hymrwymiad i drawsnewid gofal plant. Bydd y gyllideb ychwanegol yma yn cefnogi ein hamcan i gyflwyno 12 awr a hanner o ofal plant yr wythnos i bob plentyn dwy oed eleni. Rŷn ni’n cyflwyno £2 filiwn er mwyn cychwyn ar weithredu peilot Cynnal, ein taliad plant o £10 yr wythnos ar gyfer aelwydydd sy’n hawlio credyd cynhwysol. Hwn fydd y cam cyntaf pwysig yn ein cenhadaeth ehangach i fynd ati o ddifrif i drechu tlodi sydd mor ddinistriol i blant. Mae £15 miliwn o gyllid ychwanegol yn mynd tuag at brydau ysgol am ddim, wrth inni ddechrau cynnig prydau i ddisgyblion ysgol uwchradd o deuluoedd sy’n hawlio credyd cynhwysol o fis Medi ymlaen. Byddwn ni’n gweithio gydag ysgolion ac awdurdodau lleol i gyflawni hyn. Yn y gyllideb yma rydym hefyd yn clustnodi £40 miliwn o gyfalaf ychwanegol i wella ansawdd adeiladau ysgol. Hefyd, bydd £5 miliwn o gyfalaf ychwanegol i'r rhaglen cyfleusterau cymunedol—cynnydd o 50 y cant yn y gyllideb eleni. Bydd £2 filiwn o gyllid adnoddau yn cefnogi cyflwyno rhaglen newydd, nofio ac addysg diogelwch dŵr i ysgolion. Bydd hyn yn cefnogi ein hamcan i sicrhau 20 o wersi nofio i blant ym mlynyddoedd 4 a 5 ymhob ysgol gynradd yng Nghymru. Mae £8 miliwn yn ychwanegol yn y gyllideb hon i ddiogelu tocynnau bws am £1 i blant a phobl ifanc. Mae’n gynllun llwyddiannus, yn annog ein pobl ifanc i ddefnyddio bysus ac yn lleihau eu costau byw nhw. Ers degawdau, mae trafnidiaeth gyhoeddus Cymru wedi bod yn annigonol. Byddwn yn buddsoddi £2 filiwn mewn gwasanaeth bws o'r gogledd i’r de—neu o'r de i'r gogledd—rhwng Bangor a Chaerfyrddin, a fydd ar waith o’r hydref ymlaen. Cynllun yw hwn i gysylltu cymunedau gafodd eu hamddifadu o’u cysylltiad rheilffordd nôl ym 1960au y ganrif ddiwethaf. Dim ond rhan o’r stori yw’r arian sy’n cael ei gyhoeddi heddiw. Dyw darparu arian ychwanegol ynddo’i hun ddim yn arwydd o lwyddiant. Mae’r ffordd rŷn ni’n defnyddio’r arian hwnnw yr un mor bwysig. Dyna pam mae'r gwaith amlinellodd y Gweinidog Cabinet dros Effeithiolrwydd Llywodraeth a’r Cyfansoddiad yn gynharach y prynhawn yma am bwysigrwydd troi blaenoriaethau yn ganlyniadau yn mynd law yn llaw â’r gyllideb atodol hon, ac yn enwedig cyllideb yr hydref, fel bod pob punt yn gweithio’n galetach i bobl Cymru. Mae'r rhagolygon ariannol dros y blynyddoedd nesaf yn heriol. Mae’n amlwg bod angen model ariannu tecach arnon ni i Gymru. Ein bwriad fel Llywodraeth yw meithrin perthynas adeiladol â Llywodraeth y Deyrnas Unedig—pwy bynnag fydd yn arwain y Llywodraeth honno—i ddadlau’n hachos a mynd i’r afael â’r diffyg buddsoddiad hanesyddol yng Nghymru. Yn fy nghyfarfod i â Phrif Ysgrifennydd y Trysorlys yr wythnos diwethaf, fe wnes i godi’r angen am ddiwygio cyllidol, cyllid rheilffyrdd hanesyddol ac i’r dyfodol a delio ag etifeddiaeth ddiwydiannol y tomenni glo. Byddwn ni’n parhau i bwyso am degwch drwy ein perthynas â Llywodraeth y Deyrnas Gyfunol, gan gynnwys yn y Pwyllgor Sefydlog Rhyngweinidogol ar Gyllid, a fydd yn cael ei gynnal yma yng Nghaerdydd cyn bo hir, gobeithio.
Official English translation
We have inherited a challenging financial situation, and we face significant pressures across the public sector. This is a supplementary budget—a budget within a financial year. We have therefore chosen to honour the budget voted for in January, a budget that is already in place in our health boards, county councils, national bodies and the voluntary and business sectors. The purpose of this budget is not to destabilise, but to start setting a new direction for public spending in Wales, in line with the priorities the people of Wales voted for in May. As I mentioned, the financial situation is challenging and the financial pressures within the budgets are significant, especially in the health service. That's why this budget keeps money unallocated to allow us to manage the financial pressures during the year. The consequential funding to the budget from the write-off of local government’s special educational needs debts in England, together with the reserves at the beginning of a financial year, allow this Government to earmark additional funding today while keeping an eye on the ongoing financial pressures that continue within our public sector. I spoke to the leader of local government in Wales last week to explain that councils will not receive the one-off funding to write off special education debts accumulated by local government in England, as those debts do not exist in Wales in the same way. We of course accept the financial pressure that is on local government and are particularly keen to work with councils and others to plan bespoke special education services that better meet the needs of children and families, whilst also being financially sustainable for the long term. Consequential funding for special educational needs will come into our budget possibly in 2028-29, and unlike this year's one-off funding, that will be recurrent funding. Working closely within the annual budget process will put additional learning needs on a sustainable and affordable footing for the future. This supplementary budget is not intended to deliver everything, but as a first step towards making sure that our spending plans align with our manifesto. Today, I am confirming £294 million of extra funding: £164 million of resource funding and £130 million of capital funding. We are prioritising extra money to reduce NHS waiting times. This includes £100 million of resource funding, £25 million of capital funding to develop new surgical and diagnostic hubs across Wales, and £20 million of additional capital for maintenance work in the NHS. This is a total investment of £145 million in our health system to speed up treatment and improve outcomes for the people of Wales. There is no doubt that there is a need for immediate progress on reducing the waiting list backlog, but we must also ensure that we keep waiting times down permanently. This is why we are also reforming the structure of the system, to build long-term capacity. We have been completely clear that one of our main priorities is to tackle child poverty and support people in Wales with the rising cost of living. An extra £55 million will mean we can make early headway on our commitment to transform childcare. This extra budget will support our intention to accelerate the roll-out of 12 and half hours of childcare per week to all two-year-olds this year. We are introducing £2 million to begin the implementation of the Cynnal pilot, our child payment of £10 a week for households claiming universal credit. It represents an important first step in our broader mission to tackle the terrible scourge of poverty, which is so damaging to children. There is £15 million of extra funding going towards free school meals, as we begin offering free meals to secondary school pupils from families claiming universal credit from September onwards. We will work with schools and local authorities to deliver this. In this budget we are also allocating £40 million of extra capital to improve the quality of our school buildings. Also, an extra £5 million of extra capital will also go to the community facilities programme—an increase of 50 per cent to this year’s budget. There will be £2 million of resource funding to support the roll-out of the new swimming and water safety programme for schools. This will support our intention to ensure 20 swimming lessons for children in years 4 and 5 in every primary school in Wales. There is an extra £8 million in this budget to safeguard £1 bus fares for children and young people. This is a successful scheme that encourages our young people to use buses and reduces their living costs. For decades, public transport in Wales has been insufficient. We will be investing £2 million in a north-south—or south to north—coach service, linking Bangor and Carmarthen, which will be in place from this autumn. This is a scheme that will link communities that were deprived of their rail connection back in the 1960s. The money that's being announced today is only part of the story. Simply providing additional money, in and of itself, is not a mark of success. How we use that money is just as important. That is why the work that the Cabinet Minister for Government Effectiveness and the Constitution outlined earlier this afternoon about the importance of turning priorities into outcomes goes hand in hand with this supplementary budget, and especially the autumn budget, so that every pound works harder for the people of Wales. The financial outlook over the next few years is challenging. It is clear that we need a fairer funding model for Wales. Our aim as a Government is to build a constructive relationship with the UK Government—whoever leads that Government—to argue our case and address the historical underinvestment in Wales. In my meeting with the Chief Secretary to the Treasury last week, I raised the need for fiscal reform, historical and future rail funding and tackling the industrial legacy of coal tips. We will continue to press for fairness through our engagement with the UK Government, including at the next meeting of the Finance: Interministerial Standing Committee, which will hopefully take place here in Cardiff soon.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
As I look around me in this Chamber today, I see Members and parties who voted for this financial year’s current budget, which is unchanged by my statement today. I see those who have advocated over the past months in election campaigns throughout Wales the need to invest to reduce NHS waiting lists, who have supported reducing childcare costs on families, helping tackle child poverty, continuing support for young people’s bus travel and improving bus connections in rural communities. These priorities are also those that were voted for by the people of Wales and we need to enable all our delivery partners in health boards, local authorities, schools, communities and business now to get on with the job of using this budget’s additional resource to improve public services and cut costs to families. I present this budget today, yes, in the name of Plaid Cymru, but also as a budget that can work for this Senedd as a whole, because it’s a budget that works for Wales as a whole. This is a prudent budget—it is, after all, a Cardi's budget—using the funding available, spending it wisely on people’s priorities, with an eye to the pressures on the public purse that continue to face us this year and the real-terms downward trajectory of the Welsh block over the coming years.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 cy
Heddiw, felly, dwi’n gosod cyllideb atodol i ddechrau gwireddu ein blaenoriaethau a sicrhau sefydlogrwydd ar gyfer y tymor hir, nid jest atebion tymor byr. Mae’r gyllideb yn gosod y sylfaen ar gyfer ariannu ymrwymiadau’r Llywodraeth hon, a dwi’n falch o’i chyflwyno i’r Senedd.
Official English translation
Today, therefore, I lay a supplementary budget that starts to deliver on our priorities and ensure long-term stability, not just short-term fixes. This budget lays the foundation for how this Government will fund the commitments it has made, and I am proud to present it to the Senedd.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
Yes, in opposition, Plaid Cymru scrutinised the budget that was proposed by the previous Government, and we sought and received further additional resource as part of that budgetary process for both the NHS and local authorities. And, yes, of course we knew the allocation, but in opposition you don't get to see the books, and that's something you will learn. Therefore, the significant pressures within the budget line, the unallocated funding—the funding plans that had no allocation for them—of course, those weren't visible to Plaid Cymru or anybody else at the time. But the most important thing to say here is that there are significant NHS pressures in the budget. That's no surprise to any of us in this room, as we see an NHS that continues to struggle with the quantum of public funding it has available to it. I don't recognise the narrative on capital reserves or the sums and figures that you've given. For clarity to the Chamber, then, and to dismiss the narrative that you've just given, this budget has an approximation or total of over £400 million revenue and £80 million capital [correction: £50 million capital] FootnoteLink that is in both the Welsh reserve and unallocated resource. As it outlines in the budget, there is £246 million unallocated resource as a result of this supplementary budget, and £29,000 unallocated general capital as a result has been retained in reserves as a result of this first supplementary budget. And that is in order to enable us, as we progress during this financial year, to meet some of the pressures that need to be met in the NHS and in other aspects of public services, and we will do that prudently. The consequential to the Welsh budget of over £300 million that has resulted as a result of the debt write-off for local authorities on ALN provision in England is available to this budget. It is, as I said, not being seen as a way of providing a one-off contribution to local authorities as a result of that debt write-off; those debts have not existed or been allowed to exist in Wales in the same way as they have been in England. No extra provision in England will happen for additional learning needs as a result of the allocation in England. And therefore I think what this discussion on the consequential has resulted in is that it's brought us as a Government into early focus on the pressures on ALN budgets in Wales. As a Government—and we have communicated this to local authorities and we're doing so today as well—we are not in the business of one-off quick fixes; we are in the business of planning for a proper, sustainable footing for additional learning needs in Wales, and therefore the annual budget discussions that I will have with the Ministers for education and local government will result in a far more comprehensive assessment of where we are with ALN funding in Wales and how we can plan a service that delivers better for parents and children, and does so equally throughout Wales and in a way that is sustainable for the future. This Government will have a numeracy and literacy plan. This Government wants to improve numeracy and literacy within our schools. Our intention is to develop that and to work with schools and others. Our intention is not to belittle the young people and children of Wales for what they are achieving. We don't find it an easy hit to get a quick laugh in this Chamber that we do that. We're serious about the job of work we want to do in order to improve the opportunities our young people have.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 cy
Diolch am y cyfraniad, a chroeso i'r portffolio—cardi yn sgrwtineiddio cardi yn fan hyn, neu gardi o fagwraeth beth bynnag. Ie, mae'r Gweinidogion wedi clywed, a dwi wedi clywed, y feirniadaeth, a dwi wedi'i chlywed hi cyn y prynhawn yma hefyd, ynglŷn â chyhoeddi ar gyllidebau ac ar y gwaith y mae'r Gweinidogion yn mynd i neilltuo y cyllidebau ychwanegol yma ar eu cyfer nhw. Mae rhywfaint o'r gwaith yna wedi cael ei gyflwyno i'w drafod yr wythnos diwethaf. Mae'r Gweinidogion yn rhy awyddus i gychwyn ar y gwaith, mae'n amlwg, ond dwi'n ymddiheuro bod hynny wedi digwydd o flaen llaw a chyn bod y drafodaeth yma yn digwydd yn y Senedd ei hunan.
Official English translation
I thank the Member for the contribution, and I welcome him to his portfolio—a cardi scrutinising a cardi here, or at least a cardi by upbringing. Yes, the Ministers have heard, and I've heard, the criticism, and I've heard it before this afternoon, in terms of announcements made on budgets and on the work that the Ministers are going to set aside budgets for. Some of that work has been presented for discussion last week. Ministers are, clearly, too eager to start on that work, but I do apologise that that has happened beforehand and before this discussion is held in the Senedd itself.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
The capital allocation available to the Welsh Government, to this Welsh Government, is carried over from a capital allocation that was clearly outlined by Mark Drakeford, my predecessor, as something that he thought, and we agreed, should be allocated by the next Welsh Government. I did reference that in my statement, and it is part of the portfolio of funding that is available to enable this supplementary budget to be made. I do need to say once more, though, that, in the scrutiny of a budget and in Plaid Cymru's decision to support allocating additional funds to the NHS and to local authorities in January of this year for this financial year, what is available to us as an opposition party is the allocation and the detail of the budget allocation. It is not a deep insight into the financial pressures within Government that that budget could lead to. That's what's new about what Plaid Cymru is seeing and what I've seen as a result of coming into Government. Those pressures are real, they are significant, and that's why this supplementary budget today is not allocating all its revenue or capital, is keeping some of that revenue and capital unallocated in order to meet those pressures and meet any additional issues that will come to pass, possibly, during this year. The £145 million to the NHS for reducing waiting lists and for capital works as well is something that the people of Wales voted for in voting for a Plaid Cymru Government. It has been advocated by many around this Chamber that this is a priority for so many of us, because they are priorities that our constituents tell us about in our work as their representatives. But this allocation does differ from the allocations that were made by previous Governments. It doesn't just focus on bearing down on those waiting lists. It's not that sticking plaster that Darren Millar referred to earlier, but it does actually start the work also on creating a system that best deals with meeting the pressures that are ongoing, and to stop those waiting lists from increasing year on year, as they have done most recently. You'll have an opportunity, if you choose to, to question the health Minister immediately after this statement. And yes, on transport, thank you for your welcome for the provisions that we've made for the young person's travel, continuing on the successful scheme that was introduced by the previous Government. And yes, I fully acknowledge that I heard him talk about this scheme often when he was the transport Minister. I was listening to him; he's not listening to me at this point. [Laughter.] I'm going to mention you, Ken, because this is your bus. I'm happy to say that this bus connection between Bangor and Carmarthen was started and developed in your Government with our support as an opposition party. I'm happy for us to call it Bus Ken, if need be, because it is a bus that meets the needs of the communities along the western seaboard that are not met by a rail connection that was taken away. On ALN, the additional learning needs consequential is provided by the UK Treasury in England to write off historical debts accrued by councils in providing ALN services. It is not money to be used for providing more ALN services in England this year. It is a one-off debt, one-off write-off, so it's not money for service provision. However, as I said earlier, the discussion, the challenge around this consequential has focused our minds as a Government in our early days on the need to work with local authorities and schools to put ALN on a sustainable financial footing. A recurrent consequential for ALN may reach the Welsh block for 2028-29. Therefore, the work to deliver ALN services better for families concerned and more financially sustainable for the authorities delivering the services has already begun. We need to get on top of ALN expenditure. It has grown 2.5 times faster than overall educational spend in the last 10 years, and it is on a trajectory to reach a £1 billion spend within a few years. But this issue is best dealt with on a sustainable, recurrent basis, and properly planned for, and that is the work that I am going to be doing in the context of the annual budget with the Minister for education. We'll work with others, others in this Chamber, to ensure that we find a place where our additional learning needs, and those people who need the services, are better served, equally served throughout Wales, and that it is on a sustainable footing.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
Thank you, Sam Rowlands, and thank you for those questions and comments. This Government is keen to ensure that it is both business friendly and keen to make sure that we support business and economic growth here in Wales. Our top priority for doing that is to establish the national economic development agency in Wales, and we are already in the process of developing that and ensuring that we will have the budgetary requirements for that agency as it needs to come on stream, and those are discussions that I'll continue to have with the Cabinet Minister for Enterprise, Connectivity and Energy as we move now to start the annual budget process for establishing next year's annual budget. There are measures, of course, in this supplementary allocation today that will enable more people to take part in the workplace and contribute to the economy. Our childcare offer is, if not primarily, quite significantly argued for and will see benefit for those people who want to have childcare in order to enable them to either re-enter or re-enter more fully the jobs market. That's an important contribution to our economy. Reducing the travel costs for young people: young people are disincentivised from being able to reach employment opportunities because of significant travel costs, so that in itself as well enables that flexibility within the economic workplace. Tackling child poverty is another priority of this Government. The Cynnal payment and the pilot to establish that is something that we have committed to and we are funding in this supplementary budget. The Minister has established her taskforce to develop the detail of this, and in that detail as well, there will be the need to assess the work that this payment can contribute to, but we do need to be ensuring that more of our children are raised out of poverty. Thank you for acknowledging the significant £40 million school capital funding allocation. There is no doubt—I've heard it mentioned by many here in the previous Senedd—that the standards of our school buildings are not where our young people or teachers deserve them to be, and so making an inroad and a significant part of the contribution of capital funding here, making an inroad into improving our schools is important. Moving on, then, to the ALN consequential issue, you do make an important issue around school deficits. We do know that there are deficits that are held by schools, by more schools now than it used to be. The figures that I have show that 27 per cent of schools in Wales have a deficit, and we can also know that some of that deficit is created as a result of the pressures on ALN, but not exclusively ALN; there are other pressures that schools have faced as well. Therefore, these issues are ones that we will want to investigate as we move on now to think about how we ensure that schools are able to budget in a way that enables ALN to be delivered effectively in the school setting and beyond, so that we can get to a place where we are able to have a budgetary position and allocation for ALN, and a service that is planned for in a way that is better value for money, but also meets the needs better of those parents and children that depend on it.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 cy
Diolch, gyn-Gadeirydd y Pwyllgor Cyllid. Mi oedd e’n benderfyniad bwriadol gan y Llywodraeth yma i anrhydeddu’r gyllideb a basiwyd gan y Senedd ddiwethaf, ac i wneud hynny oherwydd bod y gyllideb yna eisoes yn weithredol gan ein byrddau iechyd, ein cynghorau sir a'n grwpiau gwirfoddol sydd yn dibynnu ar gyllid oddi wrth y Llywodraeth yma. Mae cymaint o wahanol agweddau o fywyd cyhoeddus Cymru wedi cynllunio ar gyfer gwariant ar sail y gyllideb a basiwyd ym mis Ionawr eleni, ac felly mae’r sicrwydd yna’n cael ei roi o’r gyllideb atodol fod y gyllideb yna’n parhau am y flwyddyn ariannol yma. Oes, mae yna gyflymder wedi bod gan y Llywodraeth yma i symud i gyflwyno’r gyllideb atodol hon er mwyn caniatáu i’r Gweinidogion yma i fod yn medru cychwyn ar y gwaith o wireddu rhai o’r blaenoriaethau a bleidleisiodd pobl Cymru amdanyn nhw. Wrth i fi wrando ar gwestiynau a chyfraniadau yn y Senedd yma dros y bythefnos ddiwethaf yma, dwi wedi clywed lot fawr o feirniadaeth bod y Llywodraeth ddim yn symud yn ddigon cyflym, bod gormod o gynlluniau a gormod o feddwl amboutu beth i’w wneud. Mae’r gyllideb yma’n caniatáu i Weinidogion Cymru symud yn gyflym ac i’r cyrff cyhoeddus fedru cyllido a gwireddu’r cynlluniau sydd yn derbyn cyllid o’r setliad yma heddiw. Felly, mae symud yn gyflym yn bwysig, ond mae’r pwynt olaf rydych chi’n ei wneud, Peredur, yn bwysig hefyd, sef bod yna 27 mlynedd o lywodraethu wedi digwydd cyn i Blaid Cymru ddod mewn yn llawn i lywodraethu yng Nghymru, ac felly mae eisiau i ni fel Plaid Cymru edrych ar yr haenau yna sydd wedi datblygu o fewn cyllido cyhoeddus yng Nghymru ac ail-lunio hwnnw fel ei fod e’n adlewyrchu’n well beth rŷn ni’n meddwl sy’n flaenoriaethau erbyn hyn i Lywodraeth Cymru, sef y rhai wnaeth pobl Cymru bleidleisio drostynt yn yr etholiad sydd newydd fod, a’r rhai, dwi’n credu, sydd hefyd yn cael eu gofyn amdanynt ar draws nifer o’r pleidiau sy’n cael eu cynrychioli yn y Senedd yma. Felly, job o waith yw hynny ar gyfer y broses o ddatblygu’r gyllideb ar gyfer y flwyddyn ariannol y flwyddyn nesaf.
Official English translation
Thank you very much to the former Chair of the Finance Committee. Yes, it was a deliberate decision by this Government to honour the budget passed by the previous Senedd, and to do that because that budget was already operational within our health boards, our local authorities and our voluntary groups who are reliant on Government funding. There are so many different aspects of Welsh public life that will have made plans for expenditure based on the budget passed in January of this year, and therefore that reassurance is provided through the supplementary budget that that budget remains in place for this financial year. Yes, there has been some pace within this Government to move to introduce this supplementary budget in order to allow Ministers here to begin the work of delivering some of the priorities that the people of Wales voted for. As I've listened to questions and contributions in this Senedd over the past fortnight, I've heard a great deal of criticism that the Government isn't moving swiftly enough and that there are too many plans and too much thought being given to what should be done. This budget allows Welsh Ministers to move quickly and for public bodies to be able to budget and deliver the plans that are being funded as a result of this settlement today. Therefore, moving apace is important, but the final point that you make, Peredur, is also important, namely that there have been 27 years of Government that happened before Plaid Cymru came in to fully govern in Wales, and therefore we as Plaid Cymru need to look at all of those layers that have developed within public budgeting in Wales and realign that so that it better reflects what we think are the priorities now for the Welsh Government, namely those that the people of Wales voted for in the election that's just taken place, and those that I think have been requested across many of the parties represented in this Senedd. So, there's a job of work to be done there in terms of the process of developing the budget for the next financial year.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
To reiterate the point I've made several times now, yes, Plaid Cymru, as would all Members in that last Senedd, would have seen and known the allocations that the previous Government were allocating to various budgets as a result of that budget process and leading up to the vote. We did not have an insight into what pressures those allocations would lead into in the context of the public services that are delivered in Wales. That insight has been insightful to me as the Minister in bringing forward this budget today. That's why we are still needing to keep over £200 million unallocated as a result of this budget, because of those pressures that continue to exist. Yes, it is a difficult budget to bring to this Senedd today. It has various challenges that have been articulated across this Chamber as to where the priorities should be. But I suspect that budgets that are brought in the future over the coming years of this Senedd will be even more difficult, because the trajectory on real-terms revenue and capital allocations for the Welsh Government is down—9 per cent less real-terms capital expenditure available to us in two years' time. So, I suspect it's going to get worse, not better.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
This budget today, this supplementary budget, honours the budget that the previous Government allocated to all public funding in Wales, including ALN. I don't need to point out to you that you were the Minister for education responsible for making the case within the previous budget for an allocation for ALN—greater, if it needed to be, as you've outlined here. As I've said, we are genuine in our understanding. We know that we need, as a Government, to do more to develop a service that is sustainable and serves the users better than what we've inherited. I don't mean that in an adversarial way. I want to work with people like you, who have the expertise to provide to this Government and across this Chamber, and to the committee that will be established as well, to see that we can get to a place where we have a better system of funding additional learning needs, where it doesn't put the pressure it's putting on the third, as you say, of our schools currently. But I don't want to do that in a way where we are providing a one-off contribution this year that has to end at the end of this year. I want to plan it properly, so that it's done in a way that delivers the best value for both the people who are served by it and for the people who pay taxes in Wales. As I said, this is on a trajectory to get to £1 billion in a few years in terms of spend on additional learning needs. If we are going to be spending £1 billion of our Welsh budget on additional learning needs, we need to absolutely make sure that it is spent in the best way. Because at the moment, we still have constituents complaining to us about the service that we have, even though there is two and a half times as much budget spent now on additional learning needs than there would have been three or four years ago. This is growing exponentially, and we need to plan for better delivery on this. I am genuine in wanting to get to that solution. I am not persuaded that the quick fix of this allocation in this year is the way to do that best. I know you have a different view on that. But I do want to ensure that we use this spotlight in this Chamber at this point on additional learning needs to get to a place where we have a better solution on how ALN is funded, how much it needs and how better it can deliver for our young people.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 cy
Diolch i chi, a chydnabyddiaeth lwyr am eich rôl chi fel Aelod yn y Senedd ddiwethaf, yn gweithio ar y cyd â'r Llywodraeth i gyflwyno teithio bws am £1 i bobl ifanc. Mae wedi bod, mae'n ymddangos, yn gynllun llwyddiannus iawn, a dyna pam mae'r Llywodraeth yma wedi'i pherswadio i barhau â'r cynllun yna. Yn yr un modd, y gydnabyddiaeth gennych chi am yr angen yna i edrych am fesurau sydd yn mynd i helpu Llywodraeth a'n helpu ni fel cymdeithas i daclo tlodi plant. Mae'r gwaith sydd wedi cychwyn yn waith cynnar, ond mae e'n waith sydd eisiau mynd i'r afael â thlodi plant. Ond fel ŷch chi'n ei ddweud, mae yna nifer o agweddau sydd yn mynd i sicrhau bod plant yn cael eu codi allan o dlodi, ac nid jest taliad uniongyrchol yw hynny. Sonioch chi am dai. Wrth gwrs, mae £20 miliwn o gyllid cyfalaf yn y gyllideb yma ar gyfer buddsoddi mewn tai newydd, tai cymdeithasol newydd. Wedyn, o ran y pwynt wnaethoch chi ar y diwedd, yr hyn sydd yn ein galluogi ni fel Llywodraeth i fod yn fwy blaengar, i anelu hyd yn oed yn uwch yn sut rŷn ni'n defnyddio'r bunt Gymreig i ddelifro gwasanaethau'n well ac i fuddsoddi mwy yng Nghymru, yw os ydyn ni'n cael mwy o hyblygrwydd ar y pwerau yna, ar fenthyg yn enwedig. Mae'r setliad ariannol sydd gyda ni, y setliad ffisgal yna sydd gyda ni gyda Llywodraeth y Deyrnas Gyfunol, angen ei ddiwygio. Dyw nifer fawr o'r pwerau sydd eisoes ar waith yn yr Alban ddim ar gael at bwrpas sefydlu cyllideb fel hyn heddiw. Felly, bydd y drafodaeth a gychwynnais i yr wythnos diwethaf gyda Phrif Ysgrifennydd y Trysorlys, pan gwrddais i â hi, ar yr anghenion i fynd i'r afael â nifer o'r materion yma—sydd ddim yn faterion datganoli enfawr, maen nhw'n bethau rhwydd i'w hadnabod ac mae yna werth penodol o fod yn eu cyflawni nhw—yn parhau gyda Llywodraeth y Deyrnas Gyfunol. Pwy a ŵyr, efallai bydd digwyddiadau'r diwrnod diwethaf yma'n arwain at well canlyniadau na'r hyn rŷn ni wedi ei weld dros y blynyddoedd diwethaf.
Official English translation
Thank you, and full recognition of your role as a Member in the last Senedd, working collaboratively with the Government to introduce the £1 bus fares for young people. It appears to be a very successful scheme, and that's why this Government has been persuaded to continue with that scheme. In the same way, the recognition from you of that need to look at measures that are going to help the Government and us as a society to tackle child poverty. The work that has started is early work, but it’s work that needs to tackle child poverty. But as you said, there are a number of different elements that will ensure that children are lifted out of child poverty, and it's not just about a direct payment. You mentioned housing. Of course, there is £20 million of capital funding in this budget for investing in new housing, new social housing. Then, on the point that you made at the end, what does allow us as the Government to be more progressive, to aim even higher in how we use the Welsh pound to deliver services better and to invest more in Wales is, if we have more flexibility in terms of those borrowing powers in particular. The fiscal settlement that we have with the UK Government needs to be reformed. A great number of powers that are already in place in Scotland aren't available in terms of our budgetary purposes today here. So, the discussion that I started with the Chief Secretary to the Treasury, when I met her, on the need to tackle many of these issues—which aren't huge devolved issues, they are easy to identify and there is specific value in delivering them—will continue with the UK Government. And who knows, maybe the events of the last few days will lead to better outcomes than what we've seen over recent years.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
Thank you for outlining the benefit and the good that will come from the £55 million on extending the childcare provision that's outlined in this supplementary budget. As you've outlined very clearly, childcare costs are a disincentive for people to be in the workplace. We need to have a more vibrant economy in Wales, and in order to enable us to do that we need more people taking part in that economy and contributing to creating wealth. Childcare is good for the children too—that is something I've heard the Minister talk about often. Multiple studies show that improved access to affordable childcare supports higher employment, particularly among parents and carers, helping more people to enter work and increase their hours. There is a serious job of work that this Government wants to do to make the lives of young families easier, tackle their cost-of-living pressures and enable them to contribute to the economy for the wider public good, as you described it. I'm really pleased that we are able to put additional funding into this and to develop our full childcare policy as we roll that out over the next three years.
5. Statement by the Cabinet Minister for Finance: The First Supplementary Budget 2026-27 en
For the avoidance of doubt and for the public record, this budget that was published at 10 o'clock this morning has a balance of £246 million unallocated resource and £29 million [correction: £29,000] FootnoteLink unallocated general capital. That provides us with the flexibility to meet all the in-year pressures and possible events that you've doomed about and what this Government needs to do, and we're confident that this budget can deliver for the people of Wales.
7
Open this sitting on the stage
1. Election of the Presiding Officer under Standing Order 6 cy
Prynhawn da a chroeso, bawb, i'r Cyfarfod Llawn. Hwn yw'r cyfarfod cyntaf o seithfed Senedd Cymru. Gaf i gychwyn drwy ddweud pa mor hyfryd yw hi i weld y Siambr yma yn llawn? Gaf i estyn llongyfarchiadau i'r 95 ohonoch ar gael eich ethol i wasanaethu pobl Cymru yn ein Senedd genedlaethol? Bydd disgwyliadau'r etholwyr yn uchel o bob un ohonom, a'r cyfrifoldeb ar ein hysgwyddau i wireddu'r disgwyliadau hynny, a gwneud hynny gydag urddas, parch a twtsh bach o hwyl hefyd. Wrth i fi baratoi i adael y swydd yma, gaf i ddymuno pob llwyddiant i chi i gyd yn eich gwaith pwysig dros y pedair blynedd nesaf? Felly, fel Llywydd, fy nyletswydd i o dan Reol Sefydlog 6.4 yw cadeirio'r trafodion ar gyfer ethol Llywydd newydd. Rwy'n gwahodd enwebiadau o dan Reol Sefydlog 6.6. A oes yna Aelod yn cael ei enwebu?
Official English translation
Good afternoon and welcome, all, to this Plenary meeting, which is the first meeting of the seventh Senedd. May I start by saying how wonderful it is to see this Chamber full? May I congratulate the 95 of you elected to serve the people of Wales in our national Parliament? The expectations of constituents of us all will be very great, and we have a responsibility to deliver against those expectations, and to do so with dignity, respect and some hwyl too. As I prepare to leave this role, may I wish you all every success in your important work over the next four years? So, as Llywydd, it's my duty, under Standing Order 6.4, to chair proceedings for the election of a new Presiding Officer. I therefore invite nominations under Standing Order 6.6. Are there any nominations?
1. Election of the Presiding Officer under Standing Order 6 cy
Diolch. Mae Huw Irranca-Davies wedi'i enwebu. A oes gennym ni Aelod nad yw o'r un grŵp gwleidyddol i eilio'r enwebiad?
Official English translation
Thank you. Huw Irranca-Davies has been nominated. Is there a Member from a different political group who seconds that nomination?
1. Election of the Presiding Officer under Standing Order 6 cy
Diolch. Mae'r enwebiad, felly, wedi'i eilio yn ffurfiol. A oes yna unrhyw enwebiadau eraill?
Official English translation
Thank you. The nomination has been formally seconded. Are there any further nominations?
1. Election of the Presiding Officer under Standing Order 6 cy
Diolch. Mae Paul Davies wedi cael ei enwebu. A oes yna eilydd o grŵp gwleidyddol gwahanol i eilio'r enwebiad hynny?
Official English translation
Thank you. Paul Davies has been nominated. Is there a seconder from a different political group for that nomination?
1. Election of the Presiding Officer under Standing Order 6 cy
Na. Gan nad oes yna eilydd i'r enwebiad hynny, dim ond un enwebiad, felly, sydd wedi'i gynnig yn ffurfiol ac yn llawn, a chynigiaf felly, yn unol â Rheol Sefydlog 6.8, fod Huw Irranca-Davies yn cael ei ethol yn Llywydd. A oes unrhyw Aelod yn gwrthwynebu hynny? [Gwrthwynebiad.] Mae yna wrthwynebiad i hynny. Felly, gan fod yna wrthwynebiad, dwi nawr yn gofyn i'r ymgeisydd wneud cyfraniad byr i'r Siambr—Huw Irranca-Davies.
Official English translation
There is not. As there is no seconder for that nomination, there is just one nomination that is put forward formally and fully, and I therefore propose, in accordance with Standing Order 6.8, that Huw Irranca-Davies be elected Llywydd. Does any Member object? [Objection.] There is objection to that. As there is an objection, I now ask the candidate to make a brief contribution to the Chamber—Huw Irranca-Davies.
1. Election of the Presiding Officer under Standing Order 6 cy
Byddwn ni nawr yn symud at y bleidlais gyfrinachol, a byddaf i'n atal y cyfarfod, er mwyn hwyluso hynny, dros dro. Bydd y pleidleisio yn digwydd yn ystafell friffio 13, sydd jest y tu allan i'r Siambr yma. Ni fydd y balot yn cau tan fod pob Aelod sy'n bwriadu pleidleisio wedi gwneud hynny. Rwyf i wedi cytuno y caiff Sarah Murphy bleidleisio drwy ddirprwy am ei bod hi ar absenoldeb rhiant, a bydd Vikki Howells yn bwrw'r bleidlais honno ar ei rhan hi fel dirprwy. Y clerc fydd yn gyfrifol am oruchwylio'r pleidleisio a'r cyfrif, ac ar ôl cyfri'r pleidleisiau a gaiff eu bwrw yn y bleidlais gyfrinachol, bydd y gloch yn cael ei chanu fel y gallwn ailymgynnull ar gyfer cyhoeddi'r canlyniad. Felly, dwi'n atal y cyfarfod dros dro am nawr.
Official English translation
We will now move to the secret ballot, and I will suspend the meeting to conduct that secret ballot. Voting will take place in briefing room 13, which is just outside this Chamber. The ballot will not close until all Members intending to vote have done so. I have agreed that Sarah Murphy may vote by proxy for reasons of parental leave, and Vikki Howells will exercise the vote on her behalf as a proxy. The clerk will be responsible for overseeing the voting and the count, and, once the votes cast have been counted from the secret ballot, the bell will be rung so that we may reconvene to announce the result. So, I suspend the meeting.
1. Election of the Presiding Officer under Standing Order 6 cy
Rydyn ni'n ailgydio yn y cyfarfod. Mae gyda fi ganlyniad ichi yn dilyn y bleidlais gyfrinachol. Mae 95 o bleidleisiau wedi eu bwrw ar gyfer Huw Irranca-Davies. O blaid Huw Irranca-Davies 85 o bleidleisiau, yn erbyn naw, yn ymatal un. Difethwyd ddim un pleidlais. Felly, dwi'n gallu datgan, yn unol â Rheol Sefydlog 6.9, fod Huw Irranca-Davies wedi cael ei ethol yn Llywydd y Senedd. Llongyfarchiadau mawr. [Cymeradwyaeth.] Fe fyddwn ni nawr yn atal y cyfarfod dros dro am eiliad neu ddwy, tra bod y Llywydd newydd yn dod i'r Gadair.
Official English translation
We reconvene. I have a result for you following that secret ballot. There were 95 votes cast for Huw Irranca-Davies. In favour there were 85 votes, against nine, and one abstention. There were no spoilt ballot papers. So, I declare, in accordance with Standing Order 6.9, that Huw Irranca-Davies is elected as Presiding Officer of the Senedd. Many congratulations. [Applause.] We will now suspend the meeting for a second or two before the Presiding Officer takes the Chair.
Roll-call divisions, by sitting day
70 recorded votes. Official division result.
- For
- 36
- Against
- 31
- Abstain
- 3
- Did not vote
- 0
Counted by Siambr: a sum of the official division rows.
For Against Abstain Unlit desk: did not vote
3 divisions
Members' Legislative Debate under Standing Order 11.21(iv): An NHS first Bill
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- Motion For Agreed
Reform UK Debate: Prostate cancer strategy
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- Motion For Agreed
Welsh Labour Debate: The M4 around Newport
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- Motion Against Agreed
3 divisions
Reform UK Debate: Local referendums on council tax rises
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Motion as amended For Agreed
6 divisions
Reform UK Debate: Regional rugby
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- Amendment 1tabled in the name of Heledd Fychan For Not agreed
- Motion Against Not agreed
Reform UK Debate: Access to HMOs and social housing for foreign nationals
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan a Lynne Neagle For Agreed
- Motion as amended For Agreed
Member Debate under Standing Order 11.21(iv): Family Drug and Alcohol Courts
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- Motion Abstain Agreed
1 division
Debate: Fiscal Reform
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- Motion Against Agreed
4 divisions
Reform UK Debate: Default 20 mph speed limit
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Motion as amended For Agreed
Welsh Conservatives Debate: The defence sector
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- Motion Against Agreed
5 divisions
Reform UK Debate: Wales and the United Kingdom
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- Amendment 2tabled in the name of Lynne Neagle Against Not agreed
- Motion as amended For Agreed
- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
Welsh Labour Debate: Further education
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- Motion Against Agreed
10 divisions
Reform UK Debate: Grooming gangs
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Amendment 2tabled in the name of Paul Davies Against Not agreed
- Motion as amended For Agreed
Reform UK Debate: Cwm Taf Morgannwg University Health Board health visitor pay dispute
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- Motion For Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Amendment 2tabled in the name of Heledd Fychan For Not agreed
- Amendment 4tabled in the name of Lynne Neagle For Agreed
- Motion as amended Against Not agreed
- Amendment 3tabled in the name of Paul Davies Against Not agreed
5 divisions
Welsh Conservatives Debate: Deposit-return scheme
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Motion as amended For Agreed
Reform UK Debate: Bovine TB
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- Motion For Agreed
Member Debate under Standing Order 11.21(iv): Young people and employment
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- Motion For Agreed
2 divisions
Legislative Consent Motion: Steel Industry (Nationalisation) Bill
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- Motion For Agreed
Debate: The First Supplementary Budget 2026-27
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- Motion For Not agreed
4 divisions
Member Debate under Standing Order 11.21(iv): Ophthalmology services
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- Motion Abstain Agreed
Reform UK Debate: The tourism sector
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Motion as amended For Agreed
4 divisions
Debate: Fair Funding
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- Amendment 1tabled in the name of Lynne Neagle Against Not agreed
- Amendment 2tabled in the name of Llŷr Powell Against Not agreed
- Amendment 3tabled in the name of Paul Davies Against Not agreed
- Motion For Not agreed
4 divisions
Reform UK Debate: Nation of Sanctuary
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- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Motion as amended For Agreed
- Motion Against Not agreed
Welsh Labour Debate: Funding for additional learning needs in the first Supplementary Budget 2026-27
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- Motion Against Agreed
10 divisions
Welsh Conservatives Debate: Hospital services and hospital closures
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Not agreed
- Amendment 2tabled in the name of Lynne Neagle Against Agreed
- Amendment 3tabled in the name of Llŷr Powell Against Agreed
- Amendment 4tabled in the name of Lynne Neagle Against Not agreed
- Motion as amended Against Agreed
Reform UK Debate: A Welsh Rivers Act
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Not agreed
- Amendment 3tabled in the name of Paul Davies Against Not agreed
- Amendment 2tabled in the name of Lynne Neagle Against Not agreed
4 divisions
Reform UK Debate: Government international spending
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Motion as amended For Agreed
Reform UK Debate: Statutory register for lobbyists
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- Motion For Agreed
5 divisions
Reform UK Debate: Childcare offer
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- Motion Against Not agreed
- Amendment 1tabled in the name of Heledd Fychan For Agreed
- Amendment 2tabled in the name of Lynne Neagle For Agreed
- Motion as amended For Agreed
Welsh Labour Debate: School support staff negotiating body
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- Motion Abstain Agreed