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| Extra £570m NHS funding in Welsh draft budget | Extra £570m NHS funding in Welsh draft budget |
| (35 minutes later) | |
| The NHS in Wales will get £570m of extra funding over three years, Finance Minister Jane Hutt has announced. | The NHS in Wales will get £570m of extra funding over three years, Finance Minister Jane Hutt has announced. |
| It includes £150m for this financial year she told AMs as she unveiled the Welsh government's draft budget. | It includes £150m for this financial year she told AMs as she unveiled the Welsh government's draft budget. |
| She said the extra money would help the NHS in Wales to avoid a scandal such as the one in Stafford Hospital, where hundreds of patients died as a result of neglect and abuse. | She said the extra money would help the NHS in Wales to avoid a scandal such as the one in Stafford Hospital, where hundreds of patients died as a result of neglect and abuse. |
| However funding for local government will see a cut of 5.81% next year. | However funding for local government will see a cut of 5.81% next year. |
| Early calculations suggest that local government cuts are particularly tough. | Early calculations suggest that local government cuts are particularly tough. |
| Local government spending will fall from £4.648bn this year to £4.466bn next year, a cut in cash terms of 3.91% or 5.81% in real terms. | Local government spending will fall from £4.648bn this year to £4.466bn next year, a cut in cash terms of 3.91% or 5.81% in real terms. |
| Their budgets will be around 9% lower in real terms between now and 2015-16. | Their budgets will be around 9% lower in real terms between now and 2015-16. |
| Ms Hutt said the pressures faced by the NHS "will continue to grow". | Ms Hutt said the pressures faced by the NHS "will continue to grow". |
| Welsh NHS spending will rise from £5.722bn to £5.927bn next year, an increase of 3.58% in cash terms or 1.68% in real terms. | Welsh NHS spending will rise from £5.722bn to £5.927bn next year, an increase of 3.58% in cash terms or 1.68% in real terms. |
| Budget deal | Budget deal |
| Earlier in the day, Plaid Cymru leader Leanne Wood and Liberal Democrat leader Kirsty Williams agreed to help the minority Labour administration get its budget through the assembly chamber. | Earlier in the day, Plaid Cymru leader Leanne Wood and Liberal Democrat leader Kirsty Williams agreed to help the minority Labour administration get its budget through the assembly chamber. |
| Conservative shadow finance minister Paul Davies criticised the budget deal. | |
| "Clearly they are willing to prop up this failing Labour government," he said. | "Clearly they are willing to prop up this failing Labour government," he said. |
| Under the terms of the deal, ministers will devote £100m to Plaid and Lib Dem spending priorities in return for the two opposition parties abstaining in the crucial vote in December. | Under the terms of the deal, ministers will devote £100m to Plaid and Lib Dem spending priorities in return for the two opposition parties abstaining in the crucial vote in December. |
| The money included £50m to treat more patients in the community rather than hospital and the doubling of funding for the pupil deprivation grant, a scheme to help poorer school pupils. | The money included £50m to treat more patients in the community rather than hospital and the doubling of funding for the pupil deprivation grant, a scheme to help poorer school pupils. |
| Whilst praising the extra spending Welsh ministers had agreed to as part of the budget negotiations, Ms Wood raised concerns about the impact of local government cuts. | |
| "What effect will this have on their ability to provide essential services?" she asked the finance minister. | |
| "What will this mean for council tax increases next year? | |
| "What advice do you intend to issue to local government about council tax, and what impact will this budget have on young people trying to stay in education and gain qualifications?" | |
| Finance Minister Jane Hutt said it was not possible to "shield" all services from UK government spending cuts. | Finance Minister Jane Hutt said it was not possible to "shield" all services from UK government spending cuts. |
| "Rising demand levels, cost increases and pressures resulting directly from the UK government's welfare reforms are biting," she said. | "Rising demand levels, cost increases and pressures resulting directly from the UK government's welfare reforms are biting," she said. |
| She stressed the priority was to protect health, schools and universal benefits, such as free prescriptions, school breakfasts and bus passes for older people. | She stressed the priority was to protect health, schools and universal benefits, such as free prescriptions, school breakfasts and bus passes for older people. |
| "We have also been clear that our focus will continue to rest on creating growth and jobs for the Welsh economy. | "We have also been clear that our focus will continue to rest on creating growth and jobs for the Welsh economy. |
| "Our commitment to tackle poverty by raising educational attainment and supporting children, families and deprived communities, will also help to achieve a fairer, healthier Wales," Ms Hutt added. | "Our commitment to tackle poverty by raising educational attainment and supporting children, families and deprived communities, will also help to achieve a fairer, healthier Wales," Ms Hutt added. |
| With hospital waiting lists getting longer, Welsh ministers have been under severe political pressure to find more money for health services. | With hospital waiting lists getting longer, Welsh ministers have been under severe political pressure to find more money for health services. |
| Since 2010 the UK coalition government has protected England's NHS budgets from spending cuts, but the Welsh government decided not to follow suit to avoid making bigger cuts in other departments, such as local government. | Since 2010 the UK coalition government has protected England's NHS budgets from spending cuts, but the Welsh government decided not to follow suit to avoid making bigger cuts in other departments, such as local government. |
| With the Welsh government's total budget frozen, extra money for the NHS means local councils are facing cuts more akin to those already experienced by town halls in England. | With the Welsh government's total budget frozen, extra money for the NHS means local councils are facing cuts more akin to those already experienced by town halls in England. |
| The British Medical Association (BMA) Wales welcomed investments into a new intermediate care fund and enhancements to health technology funding, which it said was "long overdue". | The British Medical Association (BMA) Wales welcomed investments into a new intermediate care fund and enhancements to health technology funding, which it said was "long overdue". |
| Secretary Dr Richard Lewis said: "Doctors and healthcare staff need to know that our limited resources are being targeted at services that matter to patients and support their day to day work. | Secretary Dr Richard Lewis said: "Doctors and healthcare staff need to know that our limited resources are being targeted at services that matter to patients and support their day to day work. |
| "The government need to be honest with the profession and the public about what can and cannot be delivered in these financially straightened times. | "The government need to be honest with the profession and the public about what can and cannot be delivered in these financially straightened times. |
| "There has to be a focus on clinical priorities and safe services. There is no room for unnecessary bureaucracy and empty targets." | "There has to be a focus on clinical priorities and safe services. There is no room for unnecessary bureaucracy and empty targets." |
| Commenting on the budget, the TUC in Wales said this was a "hugely challenging time for all who believe in social justice and quality public services". | |
| General secretary Martin Mansfield said the Welsh government had worked to mitigate the impact of UK cuts since 2010, | |
| He said: "The UK government has slashed our finances by £1.7bn a year in order to pursue their austerity ideology - on top of Wales already being under funded due to the Barnett formula. | |
| "The Welsh government approach is prioritising the best use of the resources left available to them. | |
| "It will be a very difficult process but we will try to support them in that effort. | |
| "All public service employers must play their full part in holding together our Welsh public service ethos." | |
| He said there must be "no knee jerk moves" towards pay cuts, job cuts and privatisation". | |
| BBC Wales economics correspondent Sarah Dickens writes: | |
| With the economy of Wales held back by too many people in low paid or low skilled work and many others not well enough to work, this budget appears to be trying to tackle that to make Wales wealthier. | |
| While extra money for health will flow back into the wider economy in the short term, it is hoped that increasing the impact of Flying Start's parenting support and the extra money for teaching children who are eligible for school meals will together try to break the poverty cycle. | |
| In an attempt to get more young people working the Jobs Growth Wales programme is being extended and an extra £12.5m is being spent to create another 4,000 job opportunities for 16-24 year olds. At the same time £20m will support apprenticeships. | |
| The losers as expected are local authorities. The local government budget is being cut by 3.9% in cash terms. That's equivalent to cuts of 5.8% when inflation is taken into account. | |
| It also needs to be remembered that two thirds of local government spending is covered by education and social services, leaving just one third to absorb those cuts. | |
| That includes leisure services, libraries, road repairs and street lighting but also planning and economic regeneration that can have a direct impact on jobs and prosperity locally. | |
| We shall hear how that directly affects local councils next week. | |
| BBC Wales education correspondent Arwyn Jones writes: | BBC Wales education correspondent Arwyn Jones writes: |
| The Pupil Deprivation Grant (PDG) was introduced last year. | The Pupil Deprivation Grant (PDG) was introduced last year. |
| Schools are allocated funds of £450 per child on free school meals, aged five to 15, which goes directly into their budgets. | Schools are allocated funds of £450 per child on free school meals, aged five to 15, which goes directly into their budgets. |
| Following today's deal, that should more than double to £918 in 2014/15. | Following today's deal, that should more than double to £918 in 2014/15. |
| The Welsh government has always stressed that each school will be able to decide how it spends its allocation of money. | The Welsh government has always stressed that each school will be able to decide how it spends its allocation of money. |
| But it does expect the money to help challenge the link between poverty and achievement in schools, with a particular focus on literacy and numeracy. | But it does expect the money to help challenge the link between poverty and achievement in schools, with a particular focus on literacy and numeracy. |
| However earlier this year there were reports that schools were absorbing the money into their budgets, using the money to buy tablet computers and to pay for teaching assistants. | However earlier this year there were reports that schools were absorbing the money into their budgets, using the money to buy tablet computers and to pay for teaching assistants. |
| So now schools have to account for their spending by publishing an online breakdown, as part of a push for greater transparency. | So now schools have to account for their spending by publishing an online breakdown, as part of a push for greater transparency. |
| Last month a survey of schools by the Liberal Democrats suggested that only 23% of schools use the PDG funding strictly for pupils on free school meals. | Last month a survey of schools by the Liberal Democrats suggested that only 23% of schools use the PDG funding strictly for pupils on free school meals. |
| But that's the only real evaluation to date of the PDG. | But that's the only real evaluation to date of the PDG. |
| To be fair, it is still early days, and the Welsh government has commissioned a team from Cardiff University to monitor how effective the grant has been. They're due to start reporting their findings next year. | To be fair, it is still early days, and the Welsh government has commissioned a team from Cardiff University to monitor how effective the grant has been. They're due to start reporting their findings next year. |
| So, yes, the money may have doubled. But we'll have to wait to see if it's money well spent. | So, yes, the money may have doubled. But we'll have to wait to see if it's money well spent. |
| Following the announcement of the draft budget, the National Union of Teachers (NUT) said while education had not been shielded from the implication of cuts to Welsh government finances, they were pleased with the "significant investment" for the PDG. | Following the announcement of the draft budget, the National Union of Teachers (NUT) said while education had not been shielded from the implication of cuts to Welsh government finances, they were pleased with the "significant investment" for the PDG. |
| NUT secretary David Evans said: "We are still lagging behind other parts of the UK. However, I think it is fair to accept that in the face of swingeing cuts to the Welsh government's funding to have £35m earmarked for schools through the PDG is something to be positive about." | NUT secretary David Evans said: "We are still lagging behind other parts of the UK. However, I think it is fair to accept that in the face of swingeing cuts to the Welsh government's funding to have £35m earmarked for schools through the PDG is something to be positive about." |