Ministers press Treasury on cuts

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Welsh, Scottish and Northern Irish finance ministers will discuss the recession and proposed budget cuts with Treasury Secretary Yvette Cooper later.

Welsh Finance Minister Andrew Davies has previously warned the UK Treasury could cut up to £500m a year from the assembly government budget from 2010.

The Edinburgh meeting follows talks between the devolved administrations' leaders and Gordon Brown last month.

No deal was reached then, but Downing Street had called talks constructive.

The latest meeting will discuss the possible consequences of the budget reductions for Wales, Scotland and Northern Ireland and how the devolved administrations are responding to the economic crisis. These reductions, which the UK government describe as being found from efficiencies, could also affect future years Welsh Finance Minister Andrew Davies

Mr Davies said: "The squeeze on public spending from 2010/11 onwards was set out in the UK government's pre-Budget report.

"I told the assembly before Christmas that this could impact on our revenue budget by up to £292m in 2010/11 and our capital budget by £215m or more.

"These reductions, which the UK government describe as being found from efficiencies, could also affect future years.

"Overall, we could face reduction in annual budget of more than £500m."

Record borrowing

Mr Davies said the assembly government planned "to do at least as well as the UK government on achieving genuine efficiencies in future years".

But he added that Welsh ministers continued to "press our case with the UK government to minimise the impact that UK fiscal decisions could have on our budget".

The Treasury's planned efficiency savings aim to save £5bn over the next few years.

The UK government's plan aims to help save the UK from a deep recession but has taken the country's borrowing to record levels.