The Final Budget 2014-15

9 December 2013

Article written by Gareth Thomas, National Assembly for Wales Research Service

The Welsh Government laid the Final Budget 2014-15 on 3 December 2013.  There have been very few changes made between the Draft and Final Budgets, these are summarised below:

  • In 2014-15, the Welsh Government has allocated an additional £5 million in capital as financial transactions funding for Cardiff Airport.  This allocation has been transferred from reserves.
  • Additional revenue funding has been allocated for a Local Government Borrowing Initiative to accelerate delivery of the 21st Century Schools Programme.  The allocations are for £3.5 million in 2014-15 and £8 million in 2015-16.
  • To support these allocations to the 21st Century Schools Programme, revenue savings have been identified within the Education and Skills Main Expenditure Group (MEG) of £1.75 million in 2014-15 and £4 million in 2015-16.  Additionally, there will be revenue savings of £1.75 million in 2014-15 and £2.1 million in 2015-16 from the Central Services and Administration MEG.  The remaining £1.9 million revenue funding for the 21st Century Schools Programme in 2015-16 is funded from reserves.
  • An additional £30 million in capital funding has been allocated in 2015-16 deliver the 21st Century Schools Programme these allocations are transferred from reserves.

Table 1 summarises the changes to Welsh Government departmental expenditure limit (DEL) allocations for each MEG between the Draft Budget and Final Budget 2014-15.  Between the Draft and Final Budgets, total Welsh Government DEL allocations have increased by £5 million in 2014-15 and £31.9 million in 2015-16.

Table 1: Changes in total Welsh Government DEL allocations by main expenditure group between Draft Budget and Final Budget 2014-15 (in £ thousand)

Final Budget table

Source: Research Service calculations from Welsh Government budgets

In terms of the overall changes in DEL between 2013-14 and the 2014-15 Final Budget, figure 1 shows the percentage change in cash terms in DEL for each main expenditure group.  It can be seen that:

  • Economy, Science and Transport and Housing and Regeneration saw the largest cash increases.
  • Local Government, Education and Skills and Culture and Sport saw cash decreases.

Figure 1: Change in total cash terms DEL allocations by main expenditure group between 2013-14 Supplementary Budget and 2014-15 Final Budget

Final Budget graph

Source: Research Service calculations from Welsh Government budgets