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Deal reached on assembly budget Deal reached on assembly budget
(about 3 hours later)
The Welsh Assembly Government has reached a deal with Plaid Cymru to save its £14.4bn spending plans for 2007-8.The Welsh Assembly Government has reached a deal with Plaid Cymru to save its £14.4bn spending plans for 2007-8.
Ministers agreed to give an extra £9.6m to schools and £1.7m more to specialist services for children with autism and special educational needs.Ministers agreed to give an extra £9.6m to schools and £1.7m more to specialist services for children with autism and special educational needs.
Labour also promised that a one off £2m grant to help schools meet their fuel bills would now be paid every year.Labour also promised that a one off £2m grant to help schools meet their fuel bills would now be paid every year.
Plaid Cymru are now expected to abstain in the vote later to allow the budget to be passed.Plaid Cymru are now expected to abstain in the vote later to allow the budget to be passed.
This is new money meaning no other budgets will be cut to provide the extra funds which is a major concession from the government Plaid leader Ieuan Wyn Jones
Plaid Cymru leader Ieuan Wyn Jones said the entire package amounted to an extra £13.m for schools, although the other opposition parties argued that only £9m was new.Plaid Cymru leader Ieuan Wyn Jones said the entire package amounted to an extra £13.m for schools, although the other opposition parties argued that only £9m was new.
'Shabby backroom deal'
Mr Jones said: "This is new money meaning no other budgets will be cut to provide the extra funds, which is a major concession from the government."Mr Jones said: "This is new money meaning no other budgets will be cut to provide the extra funds, which is a major concession from the government."
Assembly government finance minister Sue Essex said: "This represents a major investment by the assembly government in the education of children in Wales."Assembly government finance minister Sue Essex said: "This represents a major investment by the assembly government in the education of children in Wales."
Like Labour, Plaid Cymru have put their narrow self-interests before the needs of the people of Wales Conservative assembly leader Nick Bourne
But Conservatives assembly leader Nick Bourne accused Plaid of doing a "shabby backroom deal" with Labour rather than holding out for more money for education.But Conservatives assembly leader Nick Bourne accused Plaid of doing a "shabby backroom deal" with Labour rather than holding out for more money for education.
He said: "Like Labour, Plaid Cymru have put their narrow self-interests before the needs of the people of Wales."He said: "Like Labour, Plaid Cymru have put their narrow self-interests before the needs of the people of Wales."
Liberal Democrat AM Jenny Randerson predicted Plaid would go into the assembly election as "Labour's little helpers".
She said: "Together, if all parties had held firm, we could have ensured that schools would be spared Labour's cuts."
'Constructive'
Hopes of a deal rose when Plaid Cymru last night invited ministers to negotiate directly with them, breaking with the rest of the opposition.Hopes of a deal rose when Plaid Cymru last night invited ministers to negotiate directly with them, breaking with the rest of the opposition.
This is new money meaning no other budgets will be cut to provide the extra funds which is a major concession from the government Ieuan Wyn Jones Plaid Cymru leader
Sources have described the talks between the two parties as "amicable" and "constructive".Sources have described the talks between the two parties as "amicable" and "constructive".
It is understood the deal was discussed by the Plaid group as a whole this morning before it was agreed with Labour.It is understood the deal was discussed by the Plaid group as a whole this morning before it was agreed with Labour.
In his pre-Budget report Chancellor Gordon Brown announced an extra £165m for Wales over the next four years including £9m next year.In his pre-Budget report Chancellor Gordon Brown announced an extra £165m for Wales over the next four years including £9m next year.
However, all three opposition parties had said that even if the entire sum were to go to education it would still not be enough to persuade them to let the budget through.However, all three opposition parties had said that even if the entire sum were to go to education it would still not be enough to persuade them to let the budget through.
In the event, the entire £9m has gone to education together with another £2m from next year's reserves.In the event, the entire £9m has gone to education together with another £2m from next year's reserves.
This latest increase is on top of funding rises already announced.This latest increase is on top of funding rises already announced.
Total education spending in Wales will increase by £383m next year, up by 24%.Total education spending in Wales will increase by £383m next year, up by 24%.