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Cut of 10% in Welsh budget claim Cut of 10% in Welsh budget claim
(about 3 hours later)
Major Welsh parties have reacted to claims the biggest spending cuts for over 30 years will follow the election. The main Welsh parties have reacted to claims the biggest spending cuts for over 30 years will follow the election.
The Institute for Fiscal Studies says UK cuts will range from £57bn to £47bn by 2017, and the Financial Times has suggested Wales' budget could fall 10%.The Institute for Fiscal Studies says UK cuts will range from £57bn to £47bn by 2017, and the Financial Times has suggested Wales' budget could fall 10%.
Plaid Cymru said rivals were failing to spell out their plans, but Lib Dems said they were "the most honest" party.Plaid Cymru said rivals were failing to spell out their plans, but Lib Dems said they were "the most honest" party.
Conservatives said they would protect "front line public services". Welsh Labour have also been asked to respond. Tories would protect public services, and Welsh Labour would cut the deficit in half in four years "in a fair way".
The think tank's report said that based on commitments made so far, Liberal Democrats would have to cut an accumulated £51bn from spending on public services by 2017.The think tank's report said that based on commitments made so far, Liberal Democrats would have to cut an accumulated £51bn from spending on public services by 2017.
Our plans, based on the advice of the government's own efficiency advisers, are not about job losses - they are about not filling vacancies as they arise in back office posts Cheryl Gillan, Conservative With Labour 60% of our tax increases will be paid for by the top 5% of earners. By contrast the Tories would give the richest 150 people in Wales a tax break of £200,000 each Wayne David, Labour
Labour's plans would require a slightly smaller cut during that time of £47bn, the IFS said, and the Tories would cut by £57bn.Labour's plans would require a slightly smaller cut during that time of £47bn, the IFS said, and the Tories would cut by £57bn.
The report comes after the Financial Times recently suggested that among a series of cuts an incoming government would have to make would be a reduction in public sector pay by 5%, and cut the budgets for Scotland and Wales by 10%. The report comes after the Financial Times recently suggested that among a series of cuts an incoming government would have to make would be a reduction in public sector pay by 5%, and cut the budgets for Wales and Scotland by 10%.
The Welsh budget currently stands at more than £15bn.The Welsh budget currently stands at more than £15bn.
Wayne David, Welsh Labour's campaign co-ordinator, said they would cut the fiscal deficit by half over the next four years.
We will do this in a fair way through a combination of securing the economic recovery and growth, cuts to lower priority programmes and fair tax rises," he said.
"With Labour 60% of our tax increases will be paid for by the top 5% of earners. By contrast the Tories would give the richest 150 people in Wales a tax break of £200,000 each."
Our plans, based on the advice of the government's own efficiency advisers, are not about job losses - they are about not filling vacancies as they arise in back office posts Cheryl Gillan, Conservative
"The Conservatives would make immediate savage cuts which would wreck the still fragile recovery in Wales, creating more unemployment and a more divided society."
Conservative shadow Welsh secretary Cheryl Gillan said there would have to be cuts, whoever won.Conservative shadow Welsh secretary Cheryl Gillan said there would have to be cuts, whoever won.
"We have set out our plans to cut government waste this year so we can protect frontline public services and stop Labour's jobs' tax which will kill the recovery and lead to 57,000 job losses in small and medium-sized businesses alone."We have set out our plans to cut government waste this year so we can protect frontline public services and stop Labour's jobs' tax which will kill the recovery and lead to 57,000 job losses in small and medium-sized businesses alone.
"Our plans, based on the advice of the government's own efficiency advisers, are not about job losses - they are about not filling vacancies as they arise in back office posts.""Our plans, based on the advice of the government's own efficiency advisers, are not about job losses - they are about not filling vacancies as they arise in back office posts."
She said the danger to public sector jobs was "from five more years of Gordon Brown and a Labour government which runs out of money."She said the danger to public sector jobs was "from five more years of Gordon Brown and a Labour government which runs out of money."
Under the other parties' plans, Wales could face thousands of public sector job losses Helen Mary Jones, Plaid CymruUnder the other parties' plans, Wales could face thousands of public sector job losses Helen Mary Jones, Plaid Cymru
Plaid said the IFS conclusions supported their argument that "none of three London-based parties are providing detail on plans which would require some of the largest cuts in public spending since the 1970s".Plaid said the IFS conclusions supported their argument that "none of three London-based parties are providing detail on plans which would require some of the largest cuts in public spending since the 1970s".
Helen Mary Jones, Plaid's director of elections, said: "The IFS report is further vindication of Plaid's assertion that none of the London parties are being completely honest with people about their plans for spending cuts in Wales.Helen Mary Jones, Plaid's director of elections, said: "The IFS report is further vindication of Plaid's assertion that none of the London parties are being completely honest with people about their plans for spending cuts in Wales.
"Under the other parties' plans, Wales could face thousands of public sector job losses. Such savage cuts would be deeply damaging to Wales as we emerge from recession.""Under the other parties' plans, Wales could face thousands of public sector job losses. Such savage cuts would be deeply damaging to Wales as we emerge from recession."
Kirsty Williams, leader of the Welsh Liberal Democrats said: "All parties agree that cuts will have to be made but the Liberal Democrats have been the most honest about where we would make those cuts.Kirsty Williams, leader of the Welsh Liberal Democrats said: "All parties agree that cuts will have to be made but the Liberal Democrats have been the most honest about where we would make those cuts.
If cuts are made to the Welsh budget, the Welsh Liberal Democrats would ensure that the core services that people rely on are protected Kirsty Williams, Liberal DemocratsIf cuts are made to the Welsh budget, the Welsh Liberal Democrats would ensure that the core services that people rely on are protected Kirsty Williams, Liberal Democrats
"Labour likes to tell us how much they'd cut but fail to provide any detail. The Conservatives want to cut deep and cut now, risking another economic crisis, and Plaid Cymru can't even get to grips with their own manifesto costings."Labour likes to tell us how much they'd cut but fail to provide any detail. The Conservatives want to cut deep and cut now, risking another economic crisis, and Plaid Cymru can't even get to grips with their own manifesto costings.
"If cuts are made to the Welsh budget, the Welsh Liberal Democrats would ensure that the core services that people rely on are protected.""If cuts are made to the Welsh budget, the Welsh Liberal Democrats would ensure that the core services that people rely on are protected."
The IFS analysis said the years between 2011 and 2015 would bring the largest cuts since 1976 and 1980.The IFS analysis said the years between 2011 and 2015 would bring the largest cuts since 1976 and 1980.
The think-tank predicted that the Tories would need to make the biggest cuts, and Labour would make the biggest tax rises.The think-tank predicted that the Tories would need to make the biggest cuts, and Labour would make the biggest tax rises.
Conservative plans would "imply cuts to spending on public services that have not been delivered over any five-year period since the Second World War".Conservative plans would "imply cuts to spending on public services that have not been delivered over any five-year period since the Second World War".
Tax increases would be highest under Labour, the analysis suggests, totalling £24bn over the course of the next parliament.Tax increases would be highest under Labour, the analysis suggests, totalling £24bn over the course of the next parliament.
Robert Chote, the IFS director, said it was "striking how reticent all three main UK parties have been in explaining how they would confront the task".Robert Chote, the IFS director, said it was "striking how reticent all three main UK parties have been in explaining how they would confront the task".