§ Mr. RuaneTo ask the Secretary of State for Wales what plans he has for allocating the Welsh budget provision in 1999–2000, and provisionally for the years(a) 2000–01 and (b) 2001–02; and if he will make a statement. [64154]
§ Mr. MichaelThe Comprehensive Spending Review (CSR) settlement announced on 14 July 1998,Official Report, columns 187–194, allocated a total Welsh budget of £7,812 million, £8,223 million and £8,666 million for 1999–2000, 2000–01 and 2001–02 respectively. This provides for an average annual increase of 5.3 per cent. over the three years. I have now reached my decisions on how the budget should be allocated. In reaching these decisions, I took into account the views we received on the CSR consultation paper issued in September, and I would like to thank those who responded to the paper.
I have decided to allocate significant additional resources to health and education to deliver our Manifesto commitments on class sizes, education standards and health waiting lists. These are our priorities because they are the people's priorities. There are also real terms increases for key issues like tackling social exclusion, improving the economic prosperity of Wales and for other 392W important programmes. The allocations will provide an excellent start to the National Assembly for Wales.
For the NHS, I have allocated the indicative cash sums announced at the time of the CSR settlement in July—an extra £1.030 billion over the next three years. This is an average increase of 6.4 per cent. (3.9 per cent. in real terms) each year. As well as enabling us to meet our manifesto commitments on reducing waiting lists, these allocations will also secure other important service improvements.
For Education and Training, I am allocating more than the indicative figures announced at the time of the CSR. I am increasing the education and training budgets by £844 million over the three years, an extra £1,000 per pupil/student in Wales. This is an average annual increase of 7 per cent. (4.5 per cent. real) over the next three years. The increase fulfils our manifesto pledges to make education our first priority. Over £70 million of the local government revenue settlement will be for education and we will expect local authorities to increase education spending by at least this amount. The increase in resources will fund an additional 28,000 students in Further Education, and an extra 8,000 students in Higher Education, by 2001–02.
I have already announced, at column 390, the provisional settlement for local government and the police. The settlement allows for an extra £868 million in extra spending on services by Welsh local authorities over the next 3 years, net of specific grants. In addition, Welsh councils will be able to invest some £1.2 billion in capital projects over the next 3 years.
We have set ambitious targets for improving the economic prosperity of Wales in 'Pathway to Prosperity'. I have increased provision for economic measures by £134 million over the period. The new Welsh Development Agency will have a gross programme of over £200 million in 1999–2000. We are also increasing our support for small businesses. I am allocating an extra £1 million each year to the Wales Tourist Board to help promote tourism activities associated with the Rugby World Cup and Millennium promotions. On transport, we will begin to address the priorities on roads set out in 'Driving Wales Forward'. We will also be announcing substantially increased support for local authorities' Integrated Transport Packages.
I am also setting up a special fund which will enable the Assembly to continue to improve Wales's economic prosperity.
Social inclusion and tackling poverty is another of the Government's priorities and I am allocating an extra £87 million over the period to help regenerate the poorest communities and to help the most vulnerable members of society. I am allocating provision of £25 million for Sure Start to begin a major programme to improve the life chances of very young children, especially the children of families living in the more disadvantaged areas. We will be encouraging measures to promote access to education and 'second chance' opportunities for training. I also want to encourage joint working across a number of 393W programmes and organisations and I am setting aside funds for the Assembly to decide how it wishes to pursue these objectives.
I have already announced resources to ensure that the new Tir Gofal agri-environmental scheme will be properly funded, thereby meeting another of our Manifesto Commitments. We are also putting extra money into the Welsh Food Strategy.
Arts and sport in Wales is an area where provision in recent years has been cut in real terms. These programmes add to the economic and social well being of our community and I have allocated additional resources in each of the next 3 years to provide real growth.
1999–2002 Welsh Office spending plans Spending plans (£ million) Programme 1998–99 plans (£ million) 1999–2000 2000–01 2001–02 Total change (£ million) Average annual change (%) Average annual real terms change (%) NHS 2,480 2,655 2,825 2,990 1,030 6.4 3.9 Education and Training1 1,875 2,008 2,162 2,299 844 7.0 4.5 Local Authority Revenue2 2,842 2,986 3,128 3,279 868 4.9 2.4 Local Authority Capital3 426 405 395 406 -71 -1.5 -4.0 Economic Prosperity4 319 335 368 388 134 6.7 4.2 Cardiff Bay Development Corporation—to be wound up by 31 March 2000 45 35 — — — — — Social Inclusion5 90 109 114 134 87 14.4 12.0 Agriculture and Environment6 77 83 85 88 25 4.6 2.1 Arts and Culture 45 47 51 52 15 5.0 2.5 Central Administration incl. Assembly 94 120 124 126 88 10.9 8.4 Office of Her Majesty's Chief Inspector of Schools7 10 8 9 9 -4 -4.0 -6.5 Other non-block and demand-led items8 405 390 399 423 -4 1.5 -1.0 Total budget9,10 7,412 7,812 8.223 8,666 2,465 5.3 2.8 1 Education and Training line includes Central Government Education and Training programmes and Local Authority revenue and capital expenditure. 2 Local Authority revenue line includes total standard spending net of specific grants, police grants and transfers from other Government Departments. 3 Local Authority capital line includes the Windfall Tax resources for education which are outside of the published Welsh Budget figures. 4 Economic Prosperity line includes Central Government provision for Economic and Industrial Development programmes, Roads and Transport. 5 Social Inclusion lines includes Central Government provision for Housing and Personal Social Services. 6 Agriculture and Environment line includes Central Government provision for Domestic Agriculture and the Environment. 7 OHMCI includes running costs and programme expenditure. 8 Other non-block and demand-led items includes Housing Revenue Account Subsidy, Common Agricultural Policy grants and European Regional Development Fund grants. 9 Total Budget line is not the sum of the individual lines since the local authority education figures are included in Education and Training and the local authority revenue and capital lines along with other technical adjustments. 10 In addition to these figures, the Welsh Budget will be increased by its share of the Capital Modernisation fund—£30 million in 2000–01 and £45 million in 2001–02. 394W
Welsh Office spending plans—main allocations: 1999–2002 £ million Programme 1998–99 plans 1999–2000 plans 2000–01 plans 2001–02 plans Total change Average annual change (%) National Health Service 2,480.0 2,655.0 2,825.0 2,999.0 1,030.0 6.4 Education and Training 1,875.0 2,008.0 2,162.0 2,299.0 844.0 7.0 Of which: Local Authority (Revenue and Capital) 1,315.0 1,390.0 1,466.0 1,562.0 473.0 5.9 Further Education Funding Council for Wales1 178.6 199.6 213.6 228.6 106.0 8.6 Higher Education Funding Council for Wales2 232.3 270.5 294.3 314.9 182.8 10.7 Training and Enterprise 125.5 141.4 149.7 150.8 65.5 6.4 Local Authority Settlement Total Standard Spending3 2,841.8 2,986.4 3,128.0 3,279.0 868.0 4.9 Capital 425.7 404.6 395.1 406.0 -71.4 -1.5 Finally, I have allocated additional resources to meet the cost of the Assembly. This includes the capital cost of the Assembly buildings and in the first year the cost of the Assembly elections.
In addition to the CSR settlement, the Welsh budget will receive at least an extra £75 million during 2000–01 and 2001–02 from the Government's Capital Modernisation Fund; these moneys will be used to fund innovative capital projects, such as housing initiatives, schools and hospitals. The allocations to the main programmes are set out in the following tables.
It is my intention to discuss the details of the allocations at a sitting of the Welsh Grand Committee on 16 December. 395W
Welsh Office spending plans—main allocations: 1999–2002 £ million Programme 1998–99 plans 1999–2000 plans 2000–01 plans 2001–02 plans Total change Average annual change (%) Economic Prosperity 319.0 335.0 368.0 388.0 134.0 6.7 Of which: Regional Selective Assistance 61.2 63.2 61.2 61.2 2.0 0.0 Welsh Development Agency 123.0 130.0 130.0 130.0 21.0 1.9 Wales Tourist Board 14.4 15.4 15.4 15.4 3.0 2.3 Central Government Roads and Transport 102.4 104.4 107.4 107.4 12.0 1.6 Economic Development and Business Support4 9.0 9.0 42.0 62.0 86.0 138.1 Cardiff Bay Development Corporation5 44.9 35.4 — — — — Social Inclusion 90.0 109.0 114.0 134.0 87.0 14.4 Of which: Personal Social Services 6.0 12.0 20.0 20.0 34.0 55.6 Central Government Housing 84.0 89.0 84.0 84.0 5.0 0.1 Social Inclusion Fund 0.0 8.0 10.0 30.0 48.0 — Agriculture and Environment 77.0 83.0 85.0 88.0 25.0 4.6 Of which: Domestic Agriculture 54.0 57.4 59.0 62.0 16.4 4.7 Countryside Council for Wales 23.7 23.7 23.7 23.7 0.0 0.0 Cadw (incl. Royal Commission on Ancient and Historic Monuments 7.6 7.7 7.7 7.7 0.3 0.4 Arts and Culture 45.0 47.0 51.0 52.0 15.0 5.0 Of which: Welsh Language Board 5.8 5.9 6.1 6.3 0.9 2.8 Arts Council of Wales 14.3 14.8 15.3 15.6 2.8 2.9 National Library for Wales 6.0 6.2 6.4 6.5 1.1 2.7 National Museums and Galleries of Wales 12.3 13.3 13.7 14.0 4.1 4.4 Sports Council for Wales 6.6 6.8 7.0 7.2 1.2 2.9 Memo item: total Welsh budget 7,411.9 7,812.1 8,223.4 8,665.5 2,465.3 5.3 1 Excludes provision for student access funds. 2 Includes transfer from DfEE resulting from the Dealing Review. 3 Figure is net of specific grants, police grant and transfers from other Government Departments. 4 Includes Economic Prosperity Fund. 5 CBDC is to be wound up by 31 March 2000.