Final Budget 2018-19

Published 15/01/2018   |   Last Updated 27/05/2021   |   Reading Time minutes

The Welsh Government’s final budget motion will be debated on 16 January. Click here to explore the budget.

The UK Autumn budget was announced around a month after publication of the Welsh Government’s Draft Budget, resulting in changes to the funding available for Wales. This comprises £210m resource; £328m of conventional capital and £557m of financial transactions capital between 2018-19 and 2020-21.

Compared to the Draft Budget, an additional £103m revenue was announced in the Welsh Government’s Final Budget for the 2018-19 financial year (capital was unchanged except for an £850,000 revenue to capital switch in Network Asset Management & Support). The main changes are shown below:

  • £50m “to support transformation in the health service”. Including, additional funding for the Integrated Care Fund (ICF), targeted funding to primary care clusters and support for regional planning.
  • £20m to support local authorities. Including £7m to increase to the capital limit in charging for residential care and £1.3m for discretionary business rate relief. The Budget tables show £5.2m additional in the “non-domestic rates relief” BEL. Budget tables also show NDR (business rates) AME estimate is down £2m on Draft Budget figures.
  • £5m for the Higher Education Funding Council for Wales (HEFCW) and £2.5m for programmes and interventions aimed at improving skills.
  • £2.5m for air quality improvements (to local authorities)
  • £5m for Brexit preparedness to help businesses and the public sector in Wales adjust and prepare for Brexit.
  • £2m extra funding to establish Welsh Revenue Authority.

Welsh tax changes following UK Budget in response to UK tax policy changes:

  • NNDR multiplier planned increase reduced from increasing by RPI to CPI.
  • Stamp Duty lower threshold increased from £150k to £180k, plus changes to rates.

The National Assembly’s Finance Committee and other Assembly Committees have published scrutiny reports on the Draft Budget.

Article by Martin Jennings and David Millett, National Assembly for Wales Research Service