A budget analysis report on Welsh Government's spending plans sparked a political row over claims they are "hoarding" 拢655m.

Wales Fiscal Analysis team at Cardiff University鈥檚 Wales Governance Centre published its report last week.

One line stood out, with the briefing stating: "Unallocated funding for dealing with Covid-19 for this financial year now stands at an estimated 拢655m".

This was seized on by the Welsh Conservatives who claimed it was a "scandal" although the report did add that support in Wales now "far exceeds" the funding flowing from equivalent business support in England.

Here Business Live looks at the claim, Welsh Government's response and why the Wales Fiscal Analysis have said it needs to be taken into the context of various uncertainties.

What the Welsh Conservatives are claiming:

Farmer and Welsh Conservatives rural affairs minister Andrew RT Davies
Welsh Conservatives leader in the Senedd Andrew RT Davies

听

Andrew RT Davies 鈥 the Leader of the Welsh Conservatives in the Senedd 鈥 said: "People in Wales will rightly be shocked at the findings of the report that show a scandalous 拢655m is still sitting waiting to be spent as we remain in the grip of this wretched pandemic.

鈥淏usinesspeople, especially in the SME and hospitality sectors, who have seen trade dry up quite literally overnight in some cases, will find it hard to fathom that Labour is hoarding this amount of cash when it should be听allocated听and spent to protect both Welsh lives and livelihoods, and not be handed out as a sweetener as we approach the Senedd election in May.

鈥淎 failure on this scale by a government is unforgivable.鈥

How the Welsh Government responded:

First Minister Mark Drakeford
First Minister Mark Drakeford

鈥淲e have consistently provided the most generous business support package anywhere in the 海角视频 throughout this pandemic.

"The report cited confirms that we have committed more in funding for business support than we have received as Wales鈥 share of similar spending in England."

They added: "There are still the best part of two months left this year and it would not have been sensible to have听allocated听all of the money available already. The last time the 海角视频 Government provided details of their spending plans this year, in November, they were still holding COVID reserves of 拢25bn."

What the Wales Fiscal Analysis team had to say:

  • 拢655m is our estimate of available Covid-19 funding left to听allocate听before the end of March. There are important debates to be had around the best use of available funding, both in 2020-21 and 2021-22.
  • However, this unallocated funding is in the context of uncertainties around consequentials (funding from the 海角视频 government), funding pressures on public services, and budget flexibilities, for example, how much the Welsh Government will be able to use reserves this year and next. All of these factors could change over coming weeks.
  • Given these uncertainties, unallocated funding is to be expected. At the Spending Review, the 海角视频 government itself had a 拢25 billion Covid-19 reserve for 2020-21 and 拢600m of the Welsh Government鈥檚 Covid-19 funding guarantee had not yet been triggered by听allocations听in England.
  • The Welsh Government鈥檚听allocated听fiscal response to Covid-19 now broadly matches the 拢5.2 billion Covid-19 funding guarantee from the 海角视频 government 鈥 the unallocated funding left also reflects funding it鈥檚 found from within its budget, as well as repurposed EU funding.
  • There have been calls to 鈥減ass on鈥 more funding to businesses 鈥 however we estimate听allocated听Covid-19 grants and reliefs to businesses in Wales (approximately 拢2.3bn) now far exceeds the funding flowing from business support in England (approximately 拢1.9bn).

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