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Osborne's spending review to reveal size of Welsh budget Osborne's Spending Review to reveal size of Welsh budget
(about 1 hour later)
The size of the budget for the Welsh government following the 2016 assembly election will be revealed later. The size of the budget for the Welsh government following the 2016 assembly election is to be revealed.
Chancellor George Osborne's spending review will set out the UK government's spending plans for the next four years. Chancellor George Osborne's Spending Review will set out the UK government's spending plans for the next four years.
Higher spending on the English NHS will trigger increases in Welsh ministers' £15.3bn budget, but cuts to council spending in England could reduce it.Higher spending on the English NHS will trigger increases in Welsh ministers' £15.3bn budget, but cuts to council spending in England could reduce it.
First Minister Carwyn Jones urged the chancellor to "take the shackles off Wales" to help its economy grow.First Minister Carwyn Jones urged the chancellor to "take the shackles off Wales" to help its economy grow.
Fair funding for Wales, a city deal of investment for Cardiff, and rail electrification would be "a boost to our economy", he said on Twitter.Fair funding for Wales, a city deal of investment for Cardiff, and rail electrification would be "a boost to our economy", he said on Twitter.
Labour Welsh Finance Minister Jane Hutt has said her government has £1.3bn less to spend on public services than it did in 2010.Labour Welsh Finance Minister Jane Hutt has said her government has £1.3bn less to spend on public services than it did in 2010.
Mr Osborne has argued if Britain does not deal with its national debt, it runs risks with its economic security.Mr Osborne has argued if Britain does not deal with its national debt, it runs risks with its economic security.
The spending review is expected to shape domestic UK politics between now and 2020, but Welsh politicians will be looking at its immediate impact in the run-up to the assembly election in May. The Spending Review is expected to shape domestic UK politics between now and 2020, but Welsh politicians will be looking at its immediate impact in the run-up to the assembly election in May.
The chancellor had to rethink plans to cut the tax credits paid to 238,000 families in Wales after the House of Lords effectively blocked them.The chancellor had to rethink plans to cut the tax credits paid to 238,000 families in Wales after the House of Lords effectively blocked them.
There is likely to be better news for Welsh pensioners, with the chancellor confirming an increase in the basic state pension to £119.30 a week from April 2016.There is likely to be better news for Welsh pensioners, with the chancellor confirming an increase in the basic state pension to £119.30 a week from April 2016.
Mr Osborne is also expected to set out how he will guarantee that public spending in Wales will remain higher per head than in England, by introducing a "floor" under the so-called Barnett formula that decides changes in the Welsh budget.Mr Osborne is also expected to set out how he will guarantee that public spending in Wales will remain higher per head than in England, by introducing a "floor" under the so-called Barnett formula that decides changes in the Welsh budget.
But Plaid Cymru said the floor was no substitute for fair funding, with public spending in Wales still lower per head than in Scotland.But Plaid Cymru said the floor was no substitute for fair funding, with public spending in Wales still lower per head than in Scotland.
Analysis by David Cornock, BBC Wales Parliamentary correspondentAnalysis by David Cornock, BBC Wales Parliamentary correspondent
Today's spending review may shape UK politics for years to come, but Welsh politicians will be looking at its more immediate impact. Today's Spending Review may shape UK politics for years to come, but Welsh politicians will be looking at its more immediate impact.
George Osborne may have one eye on his chances of succeeding David Cameron before 2020, but Welsh politicians have their eyes firmly on the upcoming assembly election.George Osborne may have one eye on his chances of succeeding David Cameron before 2020, but Welsh politicians have their eyes firmly on the upcoming assembly election.
The chancellor's decisions will effectively set the budget for whoever wins next May - and help frame the debate during the election campaign.The chancellor's decisions will effectively set the budget for whoever wins next May - and help frame the debate during the election campaign.
His decision to prioritise NHS spending in England should deliver extra cash for Wales, as should any protection given to the schools budget.His decision to prioritise NHS spending in England should deliver extra cash for Wales, as should any protection given to the schools budget.
But cuts in local government in England could be reflected in Wales if the Welsh government displays similar priorities.But cuts in local government in England could be reflected in Wales if the Welsh government displays similar priorities.
Mr Osborne will unveil changes to his plans for tax credits, paid to 238,000 families in Wales. The 243,000 who receive housing benefit will watch anxiously to see if he cuts their payments.Mr Osborne will unveil changes to his plans for tax credits, paid to 238,000 families in Wales. The 243,000 who receive housing benefit will watch anxiously to see if he cuts their payments.
Some UK government departments have been asked to plan for budget cuts of either a quarter or two-fifths by 2020.Some UK government departments have been asked to plan for budget cuts of either a quarter or two-fifths by 2020.
Any reductions will be reflected in the Welsh government's budget, under a spending formula.Any reductions will be reflected in the Welsh government's budget, under a spending formula.
Earlier in November, Ms Hutt wrote to Mr Osborne urging him to think again about further public spending cuts, saying investment was vital for a "balanced recovery".Earlier in November, Ms Hutt wrote to Mr Osborne urging him to think again about further public spending cuts, saying investment was vital for a "balanced recovery".
She said the Welsh government's budget had already shrunk by 8% in real terms over the past five years.She said the Welsh government's budget had already shrunk by 8% in real terms over the past five years.
She highlighted plans for a metro-style transport system in south east Wales, a tidal lagoon in Swansea Bay and a "city deal", unlocking major investment in Cardiff, as major funding priorities to boost economic growth.She highlighted plans for a metro-style transport system in south east Wales, a tidal lagoon in Swansea Bay and a "city deal", unlocking major investment in Cardiff, as major funding priorities to boost economic growth.
Ms Hutt also urged Mr Osborne to give Welsh ministers "maximum" financial flexibility to invest in major infrastructure projects, but not at the expense of day-to-day funding for public services.Ms Hutt also urged Mr Osborne to give Welsh ministers "maximum" financial flexibility to invest in major infrastructure projects, but not at the expense of day-to-day funding for public services.
The UK government has said Wales has been "thriving" under its long-term plan and must contribute to the savings needed to make the UK's finances more secure.The UK government has said Wales has been "thriving" under its long-term plan and must contribute to the savings needed to make the UK's finances more secure.