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| £600m major projects to be unveiled after draft budget | £600m major projects to be unveiled after draft budget |
| (about 1 hour later) | |
| More than £600m is to be handed out towards major projects in a bid to stimulate the economy in Wales. | More than £600m is to be handed out towards major projects in a bid to stimulate the economy in Wales. |
| Finance Minister Jane Hutt will outline which capital projects like transport, schools and health, will have funding from the Welsh government. | |
| The announcement comes a day after ministers unveiled big cuts in day-to-day spending to pay for a £570m increase in the health budget. | The announcement comes a day after ministers unveiled big cuts in day-to-day spending to pay for a £570m increase in the health budget. |
| It led to a warning that local government will suffer from the cuts. | It led to a warning that local government will suffer from the cuts. |
| There has already been speculation that the announcement on capital projects could including funding for the South Wales Metro - which aims to improve bus and rail links in and around Cardiff. | There has already been speculation that the announcement on capital projects could including funding for the South Wales Metro - which aims to improve bus and rail links in and around Cardiff. |
| The idea has been backed by local business and organisations ranging from Cardiff Business School, the Cardiff Business Partnership and the Institute of Welsh Affairs. | The idea has been backed by local business and organisations ranging from Cardiff Business School, the Cardiff Business Partnership and the Institute of Welsh Affairs. |
| The focus on Tuesday was on the likely effect of budget cuts on local councils and the likely knock-on on services such as leisure centres and libraries. | The focus on Tuesday was on the likely effect of budget cuts on local councils and the likely knock-on on services such as leisure centres and libraries. |
| 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. |
| Steve Thomas, chief executive of the Welsh Local Government Association said the cuts will affect services. | Steve Thomas, chief executive of the Welsh Local Government Association said the cuts will affect services. |
| 'Poor relation' | 'Poor relation' |
| "It's a very tough budget and it's £175m coming out of council services," he told BBC Wales. | "It's a very tough budget and it's £175m coming out of council services," he told BBC Wales. |
| "We can't keep delivering the range of services that we're currently delivering so it will impact on things such as leisure services, libraries, refuse collections and the conditions of our roads. | "We can't keep delivering the range of services that we're currently delivering so it will impact on things such as leisure services, libraries, refuse collections and the conditions of our roads. |
| "We run something like 735 services so there's going to be a massive impact for the Welsh public." | "We run something like 735 services so there's going to be a massive impact for the Welsh public." |
| He added: "We're not the number one priority and clearly what has happened is with the mixture of Westminster cuts and the prioritisation of health spending, local government has become in effect the poor relation in terms of this budget." | He added: "We're not the number one priority and clearly what has happened is with the mixture of Westminster cuts and the prioritisation of health spending, local government has become in effect the poor relation in terms of this budget." |
| Mr Thomas said one way of making up the shortfall would be do raise council tax and he does not expect any councils to freeze their rates next year. | Mr Thomas said one way of making up the shortfall would be do raise council tax and he does not expect any councils to freeze their rates next year. |
| "We've yet to see the local government settlement but once we see it, I think there will be more pressure on the council tax," he said. | "We've yet to see the local government settlement but once we see it, I think there will be more pressure on the council tax," he said. |
| "It is a source of income but I think we've got to consult the public and see what services they want to prioritise. | "It is a source of income but I think we've got to consult the public and see what services they want to prioritise. |
| "We've got three years to make these cuts and it's going to be a very tough period for local authorities to do that." | "We've got three years to make these cuts and it's going to be a very tough period for local authorities to do that." |
| In announcing her draft budget, Ms Hutt said it was not possible to "shield" all services from UK government spending cuts. | In announcing her draft budget, Ms Hutt said it was not possible to "shield" all services from UK government spending cuts. |
| 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. |
| Budget investment headlines: | Budget investment headlines: |
| According to the Welsh government, these are the main areas of investment: | According to the Welsh government, these are the main areas of investment: |