THE 2021 budget “paves the way for brighter days ahead” in Wales, Welsh secretary Simon Hart has said.
Chancellor Rishi Sunak said the Welsh Government will be given an extra £740 million in funding for devolved areas through the Barnett formula.
On Wednesday, he also told the Commons the budget included commitments to funding city and growth deals in North Wales, Mid Wales and Swansea Bay, as well as cash for the Holyhead hydrogen hub and the Global Centre of Rail Excellence in Neath Port Talbot.
Mr Hart described the plan as “a fantastic budget for Wales” which would help protect jobs and livelihoods through the pandemic.
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He said: “The continuation of furlough, self-employed and business support, the Universal Credit uplift, the hospitality VAT cut and the fuel duty freeze will provide vital certainty of people and businesses in Wales in the months ahead, while the announcements of the Centre for Rail Excellence, hydrogen hub and investment in growth deals will bring thousands of high-skilled jobs, signalling Wales’s place as a centre for innovation and the industries of the future.
“As we have seen over the past year, the strength of the United Kingdom has never been more important to Wales and we will continue to provide vaccines, Covid testing and armed forces support which are key to lifting restrictions and reopening the Welsh economy.
“Today’s budget delivers for every part of Wales and paves the way for brighter times ahead.”
In a statement, Mr Sunak said: “Throughout the pandemic, the UK Government has stepped in to support millions of lives and livelihoods across Wales.
“The budget bolsters that support – ensuring our Plan for Jobs continues through the next stage our recovery.
“We are also investing millions in Welsh towns and cities, key infrastructure and green industries that will be vital to long-lasting economic growth.”
The UK Government said it was committing £4.8 million for the Holyhead hydrogen hub, a green demonstration project which will create 30 jobs in Anglesey.
It was also committing up to £30 million for the construction of the Global Centre for Rail Excellence in Neath Port Talbot, which will create 120 jobs at the new rail and infrastructure testing facility.
It said it would continue to work with the Welsh Government to establish at least one freeport in Wales as part of the aim “to make Wales a premier destination for trade and investment”.
The Welsh Conservative leader in the Senedd, Andrew RT Davies, said he wanted the Welsh Government to use the additional funding to extend business support for Welsh firms and freeze council tax rates.
His calls were echoed by the director of the Confederation of British Industry (CBI), Ian Price, who said the budget would protect the economy and kickstart recovery.
He said: “With a significant Barnett consequential delivered, local businesses will be looking to the Welsh Government to use these funds to extend business rate reliefs offered to counterparts in other parts of the UK.
“That additional breathing space will undoubtedly protect jobs and livelihood across the country in the weeks and months ahead.”
The Welsh Government’s finance minister Rebecca Evans said Mr Sunak had “done the right thing” in extending the UK-wide support package for businesses, but also said there was “no sign of real long-term help for the most vulnerable in our society” including funding of social care.
Ms Evans said on Twitter: “The Chancellor had the opportunity to make permanent the additional universal credit uplift, but he didn’t. And the longer-term changes to personal tax allowances are a stealth tax which will hit the lowest paid hardest.
“The Chancellor has splashed the cash, but none of it on capital investment by the government. The Welsh Government will get precisely nothing in terms of additions to our capital budget.”
Ms Evans also said she was “disappointed” there was no mention of funds to ensure the safety of 2,000 coal tips in Wales following a 60,000-tonne landslide last year at one in Rhondda.
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