The coalition government published the 2013 Autumn Statement on the economy and public finances. Growth forecasts for the United Kingdom had been revised upwards by the Office for Budget Responsibility, but the government said that spending needed to continue to be restrained. The statement contained a series of measures that were to be fiscally neutral overall. The measures included:
A cap on overall welfare spending, to exclude the state pension and most cyclical benefits for jobseekers.
A reduction in departmental budgets for 2014-15 (except for the National Health Service, schools, security and intelligence agencies, HMRC, and local authorities).
An increase in the state pension; pensioners and some older workers to be permitted to make additional voluntary national insurance contributions; and an increase in state pension age to 68 in mid 2030s, and then to 69 in late 2040s.
Loans to unblock large housing developments; regeneration of urban housing estates; councils to sell off valuable council housing; working people in social housing to gain priority right to move for work; and Right to Buy to be expanded.
Free school meals for children in reception and Years 1 and 2.
Additional support for 16-17 year olds who had few qualifications to find apprenticeships or traineeships; 18-21 year olds without maths and English skills to be required to train in those subjects (or lose benefits), and to be mandated to take on traineeship, work experience or community service after six months.
Apprenticeship funding to be administered through HMRC; an additional 20,000 higher apprenticeships to be provided over the next two years; and legislation to remove employer national insurance contributions on employees under the age of 21.
30,000 additional higher education places in 2014, with the cap removed in 2015; and additional funding for science, technology and engineering courses – to be financed from the sale of the student loan book.
Married couples to share tax allowance, up to £1000.
Infrastructure spending, set out in the previously published National Infrastructure Plan.
Reduction in energy levies, to be reflected in consumer bills; changes in the pricing structure for wind energy; and tax reliefs for shale gas exploration.
Source: Autumn Statement 2013, Cm 8747, HM Treasury, TSO
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Date: 2013-Dec
A report by a committee of MPs said that although the work programme's performance had been improving over time, success rates were lower in Wales than in the rest of the United Kingdom. The report recommended that the Department for Work and Pensions should review whether support providers could be incentivized to support better those jobseekers with the most severe barriers to employment. The report called for specific measures to be put in place to support lone parents, who were particularly struggling to find sustainable employment. The report made further observations about issues specific to Wales, such as access to European Social Fund training and skills courses.
Source: The Work Programme in Wales, Third Report (Session 201314), HC 264, House of Commons Welsh Affairs Select Committee, TSO
Links: Report | Press release | BBC report
Date: 2013-Nov
A report by a committee of the National Assembly for Wales said that the draft budget for the next financial year was not well aligned with the government's programme. It welcomed improvements in the clarity of the report, but the committee wanted to see government priorities more clearly reflected and highlighted in budget proposals. The report said AMs were concerned about the lack of detail regarding the financial implications of existing and forthcoming legislation. The committee recommended holding an inquiry to examine the issue in depth. In all, 22 recommendations were made.
Source: Scrutiny of Welsh Government Draft Budget 2014-15, Finance Committee, National Assembly for Wales
Links: Report | National Assembly press release
Date: 2013-Nov
The 2014-2015 draft budget for Wales was published.
Source: , Draft Budget 2014-2015: Priorities for Wales, Welsh Government
Links: Draft budget | Narrative | Tables | Alignment | Welsh Government press release | WLGA press release | BBC report | UNISON press release
Date: 2013-Oct
A think-tank report set out the existing United Kingdom economic fiscal context and explored the implications for Wales. It examined the changes in Welsh Government spending in recent years, and set out a number of scenarios for the Welsh government's budget for the period to 2025. It examined the trade-offs facing the Welsh Government when setting its departmental budgets, and related these to the spending pressures that would be faced in the coming decade as the impact of demographic change begins to make itself felt.
Source: Benjamin Deaner and David Phillips, Scenarios for the Welsh Government Budget to 2025-26, Institute for Fiscal Studies, London
Links: Report | Institute of Welsh Affairs comment
Date: 2013-Oct
A report said that public services in Wales faced unprecedented financial and demand pressures. While spending was going down, demand in key areas was set to increase and expectations of service quality were rising. The funding gap would therefore continue to rise, even when the period of austerity came to an end. If priority areas such as health, social care, and schools were protected by increasing spending to meet demand pressures, there would be reduced funding for other areas such as refuse collection, housing, street lighting, and roads maintenance. By 2024-25, spending on health alone could rise from 42 per cent of the Welsh Government's revenue budget to 57 per cent in a 'base case' and 67 per cent in a 'worst case' scenario.
Source: Mark Jeffs, Future Pressures on Welsh Public Services: Financial, demand and other cost pressures and a review of potential responses, Wales Public Services 2025
Links: Report | Summary | WLGA press release
Date: 2013-Sep
A report said that the United Kingdom government's deficit reduction plan meant that the Welsh Government faced at least four more years of budget cuts on top of those already delivered over the three years since 2010-11. Although overall spending might be able to rise from 2017-18, significant challenges would remain. In particular, pressures for increased spending in areas such as health, social services, and schools over the period to 2025-26 could see continuing spending cuts in other areas, such as transport, culture, and housing.
Source: Benjamin Deaner and David Phillips, Scenarios for the Welsh Government Budget to 2025-26, Report R83, Institute for Fiscal Studies
Links: Report | IFS press release | WLGA press release
Date: 2013-Sep
A report (based on a study in Northern Ireland, Scotland, and Wales) said that employers should do much more to ensure that an employee s mild illness did not escalate into long-term absence and sickness-related worklessness.
Source: Mark Weston and Julia Manning, Work as a Health Outcome in the Devolved Nations: How Scotland, Wales and Northern Ireland tackle sickness-related worklessness, 2020health
Links: Report | 2020 press release
Date: 2013-Jan