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Chancellor cuts Welsh government budget by 2% Chancellor cuts Welsh government budget by 2%
(35 minutes later)
Chancellor George Osborne says the Welsh government's budget will be cut by two per cent in 2015. Chancellor George Osborne says the Welsh government's budget will be cut by 2% in 2015.
Announcing the details of his spending review, he told MPs the day-to-day revenue budget would be set at £13.6bn.Announcing the details of his spending review, he told MPs the day-to-day revenue budget would be set at £13.6bn.
Mr Osborne said the UK government would publish its response to the Silk commission on assembly powers shortly.Mr Osborne said the UK government would publish its response to the Silk commission on assembly powers shortly.
He told MPs he would then be able to give details of "impressive" M4 relief road plans.He told MPs he would then be able to give details of "impressive" M4 relief road plans.
The Wales Office, the Whitehall department which represents Wales in the UK government, has agreed a cut of 10 per cent in its running costs.The Wales Office, the Whitehall department which represents Wales in the UK government, has agreed a cut of 10 per cent in its running costs.
The chancellor is setting out spending cuts for 2015/16 forced on him by slower than expected economic growth and deficit reduction.The chancellor is setting out spending cuts for 2015/16 forced on him by slower than expected economic growth and deficit reduction.
Labour has said it will stick to the plans if it wins the 2015 election.
Road questions
The Welsh government budget cuts are part of £11.5bn savings from the UK government's overall spending plans of £740bn.The Welsh government budget cuts are part of £11.5bn savings from the UK government's overall spending plans of £740bn.
The Scottish government and Northern Ireland executive have also had their budgets cut by 2%.
Mr Osborne has twice highlighted the need for a M4 relief road around Newport.Mr Osborne has twice highlighted the need for a M4 relief road around Newport.
Supporters of the scheme were expecting him to give it the go-ahead this week but will now have to wait a little longer. Supporters of the scheme were expecting him to give it the go-ahead this week but may have to wait a little longer.
Questions remain over how a project costing up to £1bn will be paid for.Questions remain over how a project costing up to £1bn will be paid for.
S4C funding
Meanwhile the UK government has confirmed it will not reduce its funding for Welsh-language television channel S4C under the spending review.
S4C received £6.7m from UK Department for Culture, Media and Sport in 2013, but is now mostly funded from the BBC licence fee.
In a statement, Welsh Secretary David Jones said: "Today's announcement further reinforces this government's commitment to a strong and independent Welsh language TV service.
"S4C has, undeniably, made an enormous contribution towards the creative industries in Wales, and crucially, to promoting the Welsh language. Indeed, it is the only Welsh language channel in the world.
"The Chancellor has recognised the importance the people of Wales place upon S4C, and has secured its funding for 2015/16.
"I am confident that the future is bright for S4C, and that it has the stability and certainty that it needs to continue to go from strength to strength."