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Budget 'not helping in recession' Budget 'not helping in recession'
(about 10 hours later)
The assembly government's draft budget for next year doesn't do enough to get Wales out of recession, according to a powerful committee of assembly members. The assembly government's draft budget for next year doesn't do enough to get Wales out of recession, according to a committee of assembly members.
It has made no significant changes to its spending plans in response to the economic downturn, according to the assembly's finance committee.It has made no significant changes to its spending plans in response to the economic downturn, according to the assembly's finance committee.
Its report is backed by the Labour, Conservative and Liberal Democrat members of the committee.Its report is backed by the Labour, Conservative and Liberal Democrat members of the committee.
The assembly government said it welcomes the committee's scrutiny work. The assembly government said it welcomes the committee's scrutiny.
In the report on the draft budget for 2010-11, ministers are accused of sticking to spending plans set before the recession rather than adapting them to the needs of the current economic situation.In the report on the draft budget for 2010-11, ministers are accused of sticking to spending plans set before the recession rather than adapting them to the needs of the current economic situation.
Members found it difficult to understand how the same plans will deliver the same One Wales objectives - which the Labour-Plaid coalition aim to achieve while in government - in changed economic circumstances.Members found it difficult to understand how the same plans will deliver the same One Wales objectives - which the Labour-Plaid coalition aim to achieve while in government - in changed economic circumstances.
Angela Burns AM, chair of the finance committee, says the assembly government needs to do moreAngela Burns AM, chair of the finance committee, says the assembly government needs to do more
They expressed particular concern about plans for 5% efficiency savings for Welsh universities and colleges next year as well as worries over the NHS budget.They expressed particular concern about plans for 5% efficiency savings for Welsh universities and colleges next year as well as worries over the NHS budget.
Committee members now want to see finance minister Andrew Davies give his reasons for keeping to current plans. Committee members now want to see Finance Minister Andrew Davies give his reasons for keeping to current plans.
Committee chair Angela Burns AM said: "The finance committee's main comment is the view that the draft budget does not seem to respond adequately to the difficult circumstances that now confront Wales as it is in one of the deepest recessions of recent years.Committee chair Angela Burns AM said: "The finance committee's main comment is the view that the draft budget does not seem to respond adequately to the difficult circumstances that now confront Wales as it is in one of the deepest recessions of recent years.
"The committee accepts that the government has a commitment to the objectives in the One Wales agreement but it finds it difficult to understand how these will be deliverable unless a much greater priority is given to driving the economy forward out of the recession."The committee accepts that the government has a commitment to the objectives in the One Wales agreement but it finds it difficult to understand how these will be deliverable unless a much greater priority is given to driving the economy forward out of the recession.
"We would have liked to have seen greater detail on the additional funds available to the government and which have been deployed in enhancing and strengthening the funds available within the economy and transport portfolio."We would have liked to have seen greater detail on the additional funds available to the government and which have been deployed in enhancing and strengthening the funds available within the economy and transport portfolio.
"The committee was particularly worried about the lack of clarity with regard to the funds available in relation to education and the savings being sought and therefore the committee plans to undertake an urgent inquiry into this matter.""The committee was particularly worried about the lack of clarity with regard to the funds available in relation to education and the savings being sought and therefore the committee plans to undertake an urgent inquiry into this matter."
Detailed scrutinyDetailed scrutiny
An assembly government spokesman said: "We welcome the detailed scrutiny carried out by the finance committee and other assembly committees as an important part of the budget process.An assembly government spokesman said: "We welcome the detailed scrutiny carried out by the finance committee and other assembly committees as an important part of the budget process.
"In fact this year the finance minister agreed to extend by a week the period available for scrutiny of the draft budget in the assembly."In fact this year the finance minister agreed to extend by a week the period available for scrutiny of the draft budget in the assembly.
"The finance minister is considering the conclusions and recommendations in the finance committee's report and will be responding in due course.""The finance minister is considering the conclusions and recommendations in the finance committee's report and will be responding in due course."
The final budget for next year is expected to be voted on by the whole assembly early next month.The final budget for next year is expected to be voted on by the whole assembly early next month.