The UK Government has provided the Welsh Government with an additional £650 million to support people, businesses and public services affected by coronavirus.
This funding brings the total allocated through the Barnett formula to the Welsh Government since the start of the pandemic to £5.85 billion.
In recognition of the exceptional circumstances and in response to calls for flexibility, the Welsh Government will be able to carry over any of the £650 million not spent this year into the 2021/22 financial year on top of their existing tools to transfer funding between years.
Welsh Secretary Simon Hart said:
We in UK Government have been relentless in our determination to get the necessary support to all parts of the UK, and today’s announcement will top-up that support for Wales to £5.85 billion.
That is on top of all of the other UK Government support packages including the furlough scheme, the Eat Out to Help Scheme and the different business loans.
It is important that this funding now gets to the businesses and individuals across Wales as we look to rebuild the UK economy.
Chief Secretary to the Treasury Steve Barclay said:
We’re committed to giving the Welsh Government the resources and flexibility it needs to tackle coronavirus and today we’re delivering an extra £650m boost.
We have worked closely with the Welsh Government in advance of this announcement to ensure they have the certainty they need ahead of finalising their budget on 16 February.
UK Treasury schemes such as furlough, support for the self-employed and business loans also continue to protect jobs and livelihoods across Wales.
Following the previous update on 24 December, this is expected to be the final update for 2020-21 as part of the process for finalising departmental funding at Supplementary Estimates.