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| £600m major projects unveiled after draft budget | |
| (35 minutes 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. |
| It includes £62m for the South Wales Metro transport project and £140m for a help-to-buy housing scheme. | |
| Finance Minister Jane Hutt says it will create or sustain 11,000 jobs and tackle poverty. | |
| The announcement comes a day after she unveiled big cuts for councils and in other areas to pay for a £570m increase in the health budget. | |
| One senior council figure warned some local authorities could "go bust". | |
| Ms Hutt announced a series of capital spending commitments, including: | |
| Ms Hutt said: "The tough economic conditions continue but I am determined to use every pound available to invest in infrastructure and boost economic growth in the long-term." | |
| Councils are still reeling from Tuesday's funding announcement by Ms Hutt 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. |
| Councillor Russell Goodway, cabinet member for finance on Cardiff council - Wales' largest local authority - said: "I think there will be some local authorities in Wales that will go bust in the next two or three years. They will run out of money. | |
| "From where I am sitting we are in a very dark place this morning and I don't think that some local authorities are going to survive." | |
| He told BBC Radio Wales that Cardiff has to save £20m this year which it was struggling to achieve let alone the £50m in cuts it needs to find in 2014-15. | |
| "Even if we stopped spending every single penny that we spend on discretionary services that would not be enough to cut our spending. We have got to find different ways of doing things." | |
| 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 to raise council tax - he did 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. |