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Economy 'top priority' for £15bn Welsh government budget | Economy 'top priority' for £15bn Welsh government budget |
(about 1 hour later) | |
The Welsh government said it would use its £15bn budget to help the economy when it revealed its spending plans for next year. | |
Finance Minister Jane Hutt set out what she said was a draft budget to stimulate growth and which protected funding for health. | Finance Minister Jane Hutt set out what she said was a draft budget to stimulate growth and which protected funding for health. |
She also promised to uphold universal benefits, such as free prescriptions. | |
The Conservatives said it "snubbed" the NHS and Liberal Democrats called for more funding for the poorest pupils. | |
'Prosperity' | |
Ms Hutt said: "Our number one priority is to deliver a budget for growth and jobs which will create a more prosperous Wales, by encouraging economic growth and creating and sustaining jobs." | Ms Hutt said: "Our number one priority is to deliver a budget for growth and jobs which will create a more prosperous Wales, by encouraging economic growth and creating and sustaining jobs." |
Health, social services and children remains the biggest department with a budget of more than £6.4bn. | Health, social services and children remains the biggest department with a budget of more than £6.4bn. |
But its biggest item of expenditure - revenue funding for NHS delivery - is being cut by £12.1m next year. | But its biggest item of expenditure - revenue funding for NHS delivery - is being cut by £12.1m next year. |
Officials say some £11m of that is money which is being repaid to a central fund that helps public services invest in more efficient practices. The rest has been moved within the department's budget. | |
The capital funding announced includes £40m for the next stage of dualling the A465 Heads of the Valleys road between Brynmawr and Tredegar. | |
Morriston Hospital in Swansea will get £18m for redevelopment. | |
Ms Hutt attacked the UK government for cutting funding to Wales. The Welsh government's budget will be £2.1bn lower in real terms by 2014/15 than it was at its peak in 2009/10. | |
The Welsh government does not have the power to borrow money or raise taxes, so must rely on an annual grant from the Treasury. | The Welsh government does not have the power to borrow money or raise taxes, so must rely on an annual grant from the Treasury. |
The budget was delivered "against the context of the most challenging economic and financial situation that we have found ourselves in since devolution", Ms Hutt said. | |
'Groundhog Day' | |
Welsh Conservative finance spokesman Paul Davies said: "It's Groundhog Day for our National Health Service. Snubbed again and still facing the toughest funding settlement in the UK. | |
"Hospital downgrades and closures threaten communities the length and breadth of Wales as a result of Labour's record-breaking cuts." | |
Ms Hutt added that Welsh Labour was "steadfast" in a commitment to universal benefits, such as free prescriptions and free breakfasts at primary schools. | |
Critics have attacked them because they benefit rich and poor recipients alike. | |
With 30 of the assembly's 60 seats, Labour will need help from opposition benches to get its budget through the assembly. | With 30 of the assembly's 60 seats, Labour will need help from opposition benches to get its budget through the assembly. |
Last year's budget was passed after a deal with the Lib Dems over extra funding for the least well-off pupils. | |
The latest spending plans maintains the funding which provides schools with an additional £450 for every child who receives free school dinners. | |
But Welsh Lib Dem leader Kirsty Williams said her party could not support it in its current form. | |
"In short, the budget should go further to ensure that children's achievement at school should reflect their ability not their background," she said. |