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Controversial Welsh budget to be passed despite criticism Lib Dems 'still in opposition' after Labour budget deal
(about 7 hours later)
The Welsh government's £14.5bn budget for next year is expected to be passed later on Tuesday with the help of the Liberal Democrats. The Welsh Liberal Democrats will remain an opposition party, despite their budget deal with the Welsh government, the party's finance spokesman has said.
Labour won the support of the Lib Dems in a deal which means more will be spent on educating poorer pupils. Peter Black was speaking during a Senedd debate on Labour's budget for next year.
But Plaid Cymru said the plans ignored the effects of a worsening economy and the Conservatives said the NHS is underfunded. The spending plans are expected to be voted through on Tuesday.
Passing a budget is the first test of how to govern without a majority. It follows a deal between ministers and the Lib Dems which offers more money to help the education of the least well-off pupils.
Labour needed the help of its opponents to ratify the budget, and the agreement with the Lib Dems followed weeks of negotiations Mr Black told AMs that his was a "responsible party" and that failing to pass the £14.5bn budget would mean uncertainty for the public sector.
Discussions The party recognised the economic context had forced difficult decisions, but supported the "general thrust" of the budget.
Ministers lost a vote on the draft budget when opposition AMs united against them last month. "We remain an opposition party with a duty to continue to hold the government to account," he said.
An extra £20m will mean schools receive £450 for each of the more than 70,000 pupils on free school meals. He denied claims from opponents that the Lib Dems had "sold out cheaply".
The Lib Dems insist this is a one-off vote, not a sign of coalitions to come. 'Good deal'
It allows them to claim that they have secured a key policy from their campaign for May's assembly election. The agreement on the budget was "not just a good deal for Welsh Liberal Democrats, but a good deal for poorer pupils around Wales, it's a good deal for education and it's a good deal for the public sector".
First Minister Carwyn Jones said no other areas of spending would be cut to pay for the deal. Finance Minister Jane Hutt said there was something in the budget that every member should support.
He has also pledged to hold discussions with his Lib Dem counterpart Kirsty Williams on how to spend an additional £216m of capital funding, coming to the Welsh government as a result of spending decisions in England. Passing the budget on time would allow councils and local health boards to make their plans, and give the private sector "confidence and stability", she said.
'Threat to jobs' Despite calls for more health spending from the Conservatives, the government was confident the money it had allocated, together with efficiency savings, would deliver the NHS "we all aspire to".
The government also spoke to Plaid, who wanted more money to help the economy and who confirmed their members will vote against the budget on Tuesday afternoon. The deal with the Lib Dems will help some 70,000 primary and secondary school pupils from poorer families, Ms Hutt said.
Plaid leader Ieuan Wyn Jones said: "We simply could not support a budget that ignores the worsening effects of this economic crisis - yet that is what Labour is placing before the National Assembly today. Schools will receive £450 for every child entitled to free school meals.
"While there is a growing threat to jobs in all areas of our nation, Labour is sitting back and letting the people take the hit." It was being paid for thanks to "careful financial management", the minister added.
The Conservatives have criticised Labour for not protecting the NHS budget against inflation, saying it amounts to a real-terms cut. She said the government believed there was a "middle ground" that could reduce the UK's debts without stalling economic growth.
Tory finance spokesman Paul Davies said: "It's become very clear that Labour's top priorities simply don't include the NHS. The budget does not meet the needs of the people of Wales, Tory finance spokesman Paul Davies said.
"They bartered a deal with the Welsh Liberal Democrats which resulted in a grand total of zero in additional funding for health. 'Sold out'
"That's not fair on patients the length and breadth of Wales." He added he was "extremely disappointed" that the Lib Dems had supported it, adding they had "sold out very cheaply".
The £32m pupil deprivation grant was short of the £40m the Lib Dems had indicated they would need for the policy in talks with the Conservatives.
Mr Davies said the budget "will rip hundreds of millions of pounds out of our health service".
Plaid Cymru leader Ieuan Wyn Jones said there were "huge cuts" in prospect for every service delivered by the government.
Although there was a cash increase for health, "we have to accept in real terms that's a cut".
He told the Tories their desire to protect health spending from inflation would mean cuts for education "far in excess of what we are already facing".
He returned to Plaid's central charge that the government had not responded adequately to the economic crisis.