Borrowing powers call debated at Senedd

Calls for the Welsh Government’s ability to borrow money to be expanded will be highlighted in a Welsh Parliament debate this week.

A Welsh Government amendment to a Conservative opposition debate on Covid-19 and the economy welcomes the Wales Governance Centre’s recommendation, along with a host of other organisations, that restrictions on Wales’ borrowing ability should be lifted in order to fund a more thorough response to the Covid-19 pandemic.

In a report by the Wales Fiscal Analysis programme in April, researchers pointed out that removing limits on drawdowns from the Wales Reserve could provide £155 million of additional day-to-day spending for 2020-21.

Writing at the time, Guto Ifan said:

“Given the scale of the health and economic crisis resulting from the Covid-19 pandemic, urgent reforms are needed so Welsh Government can respond in a way that meets the needs of our citizens.”

New research from the Wales Fiscal Analysis programme will further highlight the impact of Covid-19 on key sectors of the Welsh workforce and economy.