1. Questions to the First Minister – in the Senedd at on 3 July 2018.
8. Will the First Minister make a statement on the Welsh Government's efforts to tackle poverty? OAQ52445
We are committed to improving outcomes for future generations through investment in early years and increasing prosperity for all by focusing on employability and economic growth.
Can I thank the First Minister for that response? Many of my constituents are facing a financial crisis during the summer holidays, having to find 10 extra meals per child for six weeks. Whilst Carolyn Harris MP is providing food for some children for two weeks of the holiday, there will be substantial unmet need. Faith in the Community has met some of that need, but the closure of Communities First puts the continuation of lunches and breakfasts in some of our poorest communities in jeopardy. Will the Welsh Government investigate the cost of continuing free breakfasts and free school meals for those eligible during the school summer holidays?
Well, we have made available a grant of £500,000 per annum to the WLGA since 2017 to support the programme Food and Fun—Bwyd a Hwyl. Last year, it ran in 38 schools, covering 12 local authorities and all seven local health boards, with approximately 1,500 children benefiting from the programme. The 2018 programme is anticipated to run in approximately 60 schools. It will cover 16 local authorities, and, again, all LHB areas. The indications are that an estimated 3,000 learners will attend the scheme this summer.
The First Minister will be aware of the comprehensive report published yesterday by the Wales Centre for Public Policy, entitled 'The Welsh Tax Base: Risks and Opportunities after Fiscal Devolution'. I don't expect he's read it all overnight, but, in it, innovative approaches are suggested for regressive taxes, particularly council tax. And, as we know, people living in the lowest valued properties pay nearly 5 per cent of the worth of their house in council tax whilst people living in the most expensive properties pay as little as 0.25 per cent. But the report crucially suggests that we take a holistic approach to taxation and fiscal policy generally rather than looking at individual taxes in isolation. The report says tax reform should be pursued in an integrated way. For example, a more progressive approach to council tax could be linked to changes in land transaction tax or income tax rate. Is that approach supported by the First Minister?
I think that there is a great deal of scope over the next few years to examine models such as that. At the moment, of course, two taxes are devolved; income tax will soon follow. I think, first of all, it's important to bed the system in, but I do think there is the opportunity for debate across political parties, and in political parties, to see what kind of tax system we would want in Wales. There are positives and negatives with council tax, of course. We know that there are some people who pay a high level of council tax whose incomes are actually quite low. We know as well, of course, that, with things like a local income tax, the question then arises of: do you pay where you live, or do you pay where you work? These things have to be looked at carefully, and I'm sure they'll form part of the debate over the next few years.
Finally, Mark Isherwood.
Diolch, Lywydd. After two decades of Labour Government in Wales, the Joseph Rowntree Foundation's 'Poverty in Wales 2018' report found the proportion of households living in income poverty in Wales remained higher than in England, Scotland and Northern Ireland, and that poverty among couples with children had been rising since 2003-06. In that context, how do you respond to the statement by the Bevan Foundation that, if people feel that policies are imposed on them, the policies don't work, and that a new tackling poverty programme should not be directed top down?
I always think that listening to the Conservatives talking about poverty is a bit like somebody trying to stand up on a paddle board without falling off into the sea of austerity that's gathered around it. The reality is that it is his party that has done so much to cut the incomes of our poorest people. How can we rest as a society when we know that in England there are nurses who have to go to food banks? We used to say to people, 'If you get a job, you'll be better off.' That's no longer the case. We've seen in-work benefits cut, we've seen tax cuts for those who earn the most, and then we have Conservative politicians wondering why levels of poverty have gone up. Yes, we have, of course, our plans to tackle poverty, but we do need a change of Government in London so we have a Government that is far more committed to a more equal society.
Thank you, First Minister.