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Economy 'top priority' for £15bn Welsh government budget Economy 'top priority' for £15bn Welsh government budget
(35 minutes later)
The Welsh government said it would use its £15bn budget to help the economy when it revealed its spending plans for next year.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.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.The Conservatives said it "snubbed" the NHS and Liberal Democrats called for more funding for the poorest pupils.
'Prosperity''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 reducing 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. Officials say some £11m of that is money local health boards borrowed for a central fund which helps public services invest in more efficient practices and which is now being repaid. The rest has been moved within the health 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.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.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.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.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''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.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.""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.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.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.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.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.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."In short, the budget should go further to ensure that children's achievement at school should reflect their ability not their background," she said.