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Deal reached on assembly budget Assembly budget is finally passed
(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 minority Welsh Assembly Government's £14.4bn budget has won the backing of AMs after a deal between the Labour administration and Plaid Cymru.
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. £9.6m more will go to schools and an extra £1.7m to services for children with 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. A £2m grant to help schools meet fuel bills is now promised every year rather than as a one-off.
Plaid Cymru are now expected to abstain in the vote later to allow the budget to be passed. Plaid said it had won a "major concession" but other opposition parties accused it of "caving in".
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 £13m for schools, although the Conservatives and Liberal Democrats 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. After a rowdy debate Plaid AMs, who form the largest opposition group, abstained in the vote, as did independent John Marek.
The other independent in the chamber, Trish Law, voted for the budget, helping Labour to win by 30 votes to 17, with 12 abstentions.
Mr Marek and Mrs Law said they did not oppose the budget because they had won important concessions for their constituencies.
...it is a fair response that in my view meets the most urgent needs of people in Wales... Finance Minister Sue Essex
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: "I'm not claiming that my budget today meets all the demands that have been made, that would have indeed been impossible, but it is a fair response that in my view meets the most urgent needs of people 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 Conservative assembly leader Nick Bourne said Plaid had allowed Labour to win a great victory.
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: "The losers are schools, universities, and local authorities".
He said: "Like Labour, Plaid Cymru have put their narrow self-interests before the needs of the people of Wales." 'Little helpers'
Liberal Democrat AM Jenny Randerson predicted Plaid would go into the assembly election as "Labour's little helpers". The Conservatives and Liberal Democrats accused Plaid Cymru of actually only gaining a tiny amount of extra cash for schools.
She said: "Together, if all parties had held firm, we could have ensured that schools would be spared Labour's cuts." Liberal Democrat leader Mike German predicted Plaid's decision to let the budget pass could influence next May's assembly election.
'Constructive' He said: "They will go into the election as Labour's little helpers."
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.
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.
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.
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%.