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Welsh budget: Most of higher education cuts are reversed | Welsh budget: Most of higher education cuts are reversed |
(35 minutes later) | |
Most of the cuts that were planned for higher education have been reversed, the finance minister has announced, as the Welsh budget was passed. | |
The Higher Education Funding Council for Wales (HEFCW) had been facing cuts of £42m, around a third of its budget. | The Higher Education Funding Council for Wales (HEFCW) had been facing cuts of £42m, around a third of its budget. |
But Jane Hutt told AMs £31m of them will be cancelled. HEFCW will now have to find £11m worth of savings. | But Jane Hutt told AMs £31m of them will be cancelled. HEFCW will now have to find £11m worth of savings. |
She also set out plans to use £2.5m from reserves to help soften the blow of cuts to three rural councils. | |
Ms Hutt said she would allow HEFCW - which funds Welsh universities - to keep £21.1m which was due to be diverted to tuition fee subsidies, and would give it an extra £10m to support part-time courses and research. | Ms Hutt said she would allow HEFCW - which funds Welsh universities - to keep £21.1m which was due to be diverted to tuition fee subsidies, and would give it an extra £10m to support part-time courses and research. |
In statement, HEFCW responded: "A cut of 32% to HEFCW's budget would have had a real impact on universities' ability to meet Welsh government priorities. | In statement, HEFCW responded: "A cut of 32% to HEFCW's budget would have had a real impact on universities' ability to meet Welsh government priorities. |
"We are delighted that the contribution of Welsh universities to the economy and society of Wales has been acknowledged." | "We are delighted that the contribution of Welsh universities to the economy and society of Wales has been acknowledged." |
The assembly voted on Tuesday to approve the 2016/17 budget, which includes an extra £278m for the NHS. | |
With Labour in favour and the Tories and Plaid Cymru voting against, the Liberal Democrats abstained, allowing the budget to pass. | |
There was an outcry from opposition parties when plans to cut council budgets by an average of 2% were announced in December, with rural authorities facing the biggest cuts. | |
The Liberal Democrats claimed credit for securing some recompense for the three biggest losers. | The Liberal Democrats claimed credit for securing some recompense for the three biggest losers. |
Ms Hutt told AMs: "Where we've considered that evidence is compelling we have made some adjustments to our spending plans to support our priorities. | |
"We are confident that our plans are the right plans to invest in the future of Wales - a clear way forward supporting jobs growth and the services that mean the most to the people of Wales." | "We are confident that our plans are the right plans to invest in the future of Wales - a clear way forward supporting jobs growth and the services that mean the most to the people of Wales." |
The budget is the result of a two-year deal between Labour and the Liberal Democrats after extra money was allocated to pupils from disadvantaged backgrounds. | The budget is the result of a two-year deal between Labour and the Liberal Democrats after extra money was allocated to pupils from disadvantaged backgrounds. |
Conservative Shadow Finance Minister Nick Ramsay accused ministers of announcing "piecemeal rises" to health and education spending. | Conservative Shadow Finance Minister Nick Ramsay accused ministers of announcing "piecemeal rises" to health and education spending. |
"This budget is more an attempt to make up for past underfunding than a genuine investment in our vital services," he said. | "This budget is more an attempt to make up for past underfunding than a genuine investment in our vital services," he said. |
Plaid Cymru criticised ministers for being "committed to spending their entire borrowing capacity" on a planned M4 relief road around Newport. | |
Finance spokesman Alun Ffred Jones said: "We will not support a budget, or a government, which we see as failing to meet the needs of all the regions of our country." |