The Welsh Government will have a budget of £17bn in 2019-20 to invest in public services in Wales.
The budget includes an allocation called the block grant, which comes from the UK Government. From April 2019, the block grant will be worth £13.7bn or 80% of the Welsh Budget. The remainder is made up of taxes set in Wales. All the revenues raised will fund public services in Wales, including the NHS, schools and council services. The money raised from taxes in Wales comes from:
o Welsh rates of income tax
o Land Transaction Tax
o Landfill Disposal Tax
o Non-domestic Rates – this tax helps to fund council spending
o Council tax – this tax directly funds council spending.
The Welsh Government is currently deciding how to spend the budget. These decisions are being made as we enter the ninth year of austerity – the longest period of sustained austerity in living memory. UK Government cuts to funding for public services mean our budget is 5% lower in real terms than it was in 2010-11.
The UK Government’s planned Spending Review in 2019 could affect the amount of funding which comes to Wales in the form of the block grant, so too could the uncertainty about the negotiations for a Brexit deal.
Wales receives £680m annually from the EU. Unlike the UK overall, Wales receives more money from the EU than we pay in. During the referendum voters were assured that Wales would be not a penny worse off as a result of leaving the EU. The Welsh Government intends to hold the UK Government to account for that promise.
This uncertainty means it is hard for the Welsh Government to plan more than one year ahead.
Please use the calculator to see what would happen if we raise more or less income from tax or if borrowing changes and what impact different spending decisions have on the Welsh budget.
How to use the Budget calculator:
Select the information (i) icons to read about our tax and borrowing powers and to see what services are funded in each spending area.
Move the sliders to raise or lower the amounts of money Wales receives and change how much is being spent in each spending area*.
*spending areas reflect the structure of the Welsh Government’s Final Budget, which was published in December 2017.
To find out more about the Budget 2018-19, visit our website:
This Budget calculator will close at the end of October 2018.