£655m Covid support in Wales still unallocated WHY?

Commenting on today’s Wales Governance Centre analysis of the Welsh Government’s budget, Welsh Conservative Senedd leader, Andrew RT Davies MS said:

“Despite a significant £200m hit to Welsh Income Tax revenues from the pandemic, the fiscal framework delivered by the UK Conservative Government has seen Wales' budget largely protected, which has been vital in supporting the economy and public services.

“The report also makes clear the Welsh Labour Government is still sitting on £655m of Covid financial support from the Chancellor, which will be extremely frustrating for those businesses and workers who are crying out for more support from ministers in Cardiff Bay.

“Labour ministers must rectify this immediately and use these funds to help save jobs across Wales.”

• The Wales Governance Centre report can be found here: https://www.cardiff.ac.uk/news/view/2493865-updated-analysis-of-the-welsh-governments-budget
• A total of £5.2bn has now been guaranteed for Wales by the UK Government in 2020-21 as a result of Covid-19 related announcements.
• Following large allocations to business support over recent months, approximately £655m remains to be committed for 2020-21, while the Draft Budget for 2021-22 leaves £689m of Covid-19 funding unallocated.
• Despite a £200m hit to Welsh Income Tax revenues from the pandemic, given trends in the Block Grant Adjustment, the net effect of tax devolution on the Welsh budget is a loss of £25m in 2021-22.