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Chancellor hope in AMs' deadlock £9m could break budget deadlock
(about 9 hours later)
The assembly government is waiting to learn if Chancellor Gordon Brown will help break the political deadlock over Wales' 2007 budget proposals. An extra £9m for Wales from Chancellor Gordon Brown could break a stalemate between the assembly government and opposition over next year's budget.
Opposition parties at the assembly say they will vote down Labour's £14bn spending plans unless another £22m is found for schools and universities. Opposition parties in Cardiff Bay had said they would vote down Labour's £14bn spending plans unless £22m more was found for schools and universities.
Mr Brown is to deliver his 10th pre-Budget report on Wednesday. But Tories suggested on Wednesday they would back the budget if enough of the Treasury's £9m went on education.
Welsh Finance Minister Sue Essex has said she would be happy to talk to opposition AMs if there was extra cash. It is understood no new talks have yet been held to resolve the spending row.
Opposition parties hold a slim majority in the Welsh assembly and had threatened to form a coalition government unless the Labour administration meets their demands for the additional funds for education. The extra cash came as part of Mr Brown's 10th pre-Budget report.
The assembly budget plans go to vote next Wednesday and Labour has insisted there is no more money available. He announced an extra £165m for Wales over the next four years including £9m next year.
It has also said defeat on the budget vote would leave public services in limbo. Conservative assembly leader Nick Bourne said it was now up to the first minister to show what his priorities were.
'Alternative' Mr Bourne said: "Rhodri Morgan must now decide whether he believes in investing in education or is prepared to reap the consequences if he does not."
First Minister Rhodri Morgan challenged the opposition to say where the money they want to see included could be found. The comment is a clear indication that the Conservatives would back the budget if enough of the £9m were to go to education.
He said: "Say what you would add and say what you'd subtract to give you the same total. Because the one thing we can't do is increase the total." Welsh Finance Minister Sue Essex had said previously she would be happy to talk to opposition AMs if there was extra cash.
Mr Morgan has also said that time was running out for negotiations over the proposals but opposition leaders claimed it was Labour which broke off discussions about the assembly budget. Opposition parties hold a slim majority in the Welsh assembly and had threatened to form a coalition government unless the Labour administration met their demands for the additional funds for education.
Plaid Cymru leader Ieuan Wyn Jones, who has played down talk of a coalition of the opposition parties, said: "What we have said to the [assembly] government is that we will work with you to find the money within the budget. The assembly budget plans go to the vote on Wednesday 13 December and Labour has said defeat on the budget vote would leave public services in limbo.
"We are offering an alternative. The alternative is for the government to talk to us."
At a news conference on Tuesday called by opposition parties, Conservative assembly leader Nick Bourne said it was Mr Morgan's duty to "sit down and hammer this out".
Liberal Democrat leader, Mike German, said: "All the balls are in Labour's court."