Extra £425m for the Welsh NHS in a ‘Priorities for Wales’ Budget 2015-16

Presenting the ‘Priorities for Wales’ Draft Budget, Jane Hutt, Minister for Finance & Government Business, today announced £425m of extra funding to the Welsh NHS in this year and next, in order to deliver high quality, sustainable health services.

Despite the unprecedented budget cuts by the UK Government, which will see the Welsh 2015-16 Budget more than £1.5bn lower in real terms than in 2010-11, the Government has continued to focus on its priorities for Wales. The additional funding for the NHS is in response to the Nuffield report, which concluded that the NHS in Wales will continue to be affordable in future if it continues to reform and re-shape services.

A focus on preventative measures and early interventions is at the heart of the spending plans – directing resources to measures that help avoid problems occurring in the first place, interventions which will address the pressures on public services and achieving a better quality of life for current and future generations. An additional £10m will be provided to local authorities in recognition of the challenges faced by social services, highlighting the important relationship between local government and the health service.

The Draft Budget for 2015-16 includes:

Health and Well-being

An additional £225m next year to the Welsh NHS responding to the Nuffield Challenge;

Educational Attainment

Protecting schools funding by 1% above changes to the Welsh budget overall, meaning an additional £106m will have been provided to schools over this Spending Review period;

Allocating an additional £12m to continue the Schools Challenge Cymru for next year;

A two year agreement with the Welsh Liberal Democrats which will see the Pupil Deprivation Grant (PDG) rise from £918 to £1,050 in 2015-16 and then again to £1,150 in 2016-17 and extending the PDG to nursery aged children in both years; and

A new Youth Concessionary Fares scheme for 16-17 year olds starting in September 2015

Growth and Jobs

Continued investment in a range of employment programmes, including funding through Jobs Growth Wales to create 16,000 job opportunities by March 2016.

Continuing our investment in our road and rail networks with £245m in 2015-16.

Supporting Children, Families and Deprived Communities

Protecting funding for Flying Start, doubling the number of children benefitting to 36,000;

Maintaining funding to provide an additional 500 community support officers;

Maintaining support for Universal Benefits – free school breakfasts and school milk, free prescriptions, free swimming and concessionary fares;

As part of the Draft Budget, the Minister also announced over £100m of Capital investments in support of the Wales Infrastructure Investment Plan – including £11m for immediate investment. This includes:

• £37m over this year and next to provide further investment in housing – expanding the Affordable Housing Land Scheme, Houses into Homes Scheme, Home Improvement Loans and the Town Centre Loans Scheme;
• Allocating £2m towards the Gypsy and Traveller Sites Programme;
• Investing £5m in the first phase of the Green Growth Wales Scheme; and
• As part of the Budget Agreement with the Welsh Liberal Democrats, this includes £40m of investment in transport infrastructure to enable early delivery of key infrastructure assets. This includes an additional £30m to ensure the Cardiff Eastern Bay Link Road starts construction next year.

Jane Hutt said:

“This is a responsible, pioneering and sustainable budget that supports our Priorities for Wales. Our principles of social justice and fairness are at the heart of our spending plans and our focus on preventative measures and early intervention have shaped our entire approach to this Budget.

“Faced with unprecedented cuts by the UK Government, we have had to make difficult decisions to protect the services people the length and breadth of Wales rely on.

The ground-breaking two-year agreement we have reached with the Welsh Liberal Democrats ensures stability for the people of Wales and the providers of our essential public services.

“Investing in our Health Service is a priority for this Government – it is what the people of Wales expect. That is why I have today announced £425m for the NHS in Wales over this year and next. This responds directly to the Nuffield Challenge and reflects how vital health spending is to the longer term health and wellbeing of the people of Wales.

“In these difficult times, we must remain focused on delivering our Priorities for Wales. We are determined to promote and invest in policies which raise educational attainment, and boost growth and jobs.

“This is a Draft Budget for the public services we cherish and support. It is a Budget for all those the people of Wales who benefit from these services in line with our principles as a caring, committed and responsible Welsh Government.”