RICS responds to Welsh Government budget announcement

In the face of a £600m budget shortfall between today and April 2024, the Welsh Government have taken the unprecedented step of amending the government's fiscal plans – delivering an emergency budget as it has otherwise been phrased.

Investment in healthcare and transport remains a priority, whilst almost all other parts of the public sector will face some form of cuts. For the built environment, it is a mixed picture.

Following the UK Government’s recent announcement on scaling back HS2, Transport for Wales will see its budget increase by £125 million as work to deliver the South Wales Metro continues. This is a welcomed increase and a sign of the commitment towards one of the largest infrastructure projects ongoing in Wales.

Meanwhile, the Sustainable Communities for Learning Programme, which RICS have worked closely with in recent years on the creation of high-quality and sustainable schools and colleges will see £40m of capital released.

In housing, £19 million is being cut from the Empty Homes Scheme as part of its overall £50m budget aimed at bringing thousands of vacant properties back into use. The government have been keen to stress this is reflecting updated forecasts and deferral of activity whilst committing to their overall target of delivering 20,000 new social homes.

Commenting on the Welsh Government’s decision, RICS Senior Public Affairs Officer Sam Rees said:

“The significant budgetary pressures facing the Welsh Government means this announcement, while unprecedented, is not unexpected.

“RICS members working in the infrastructure sector in Wales have repeatedly said how investment in rail and active travel projects are a growing part of their work – so the additional funding for Transport for Wales is welcomed.

"Considering the pressure the government is under to meet its housing targets, it is disappointing that funding has been cut to bringing empty homes back into use – especially when there are an estimated 22,000 vacant properties in Wales and thousands of potentially newly built homes stuck in the planning system.”