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Rise in spending could slow down Rise in Welsh spending slows down
(about 3 hours later)
The Welsh Assembly Government is waiting to discover how much it can spend over the next three years. Welsh Assembly Government spending will rise by an average of 2.4% a year above inflation for the next three years, says the Treasury.
There is expected to be more money for public services, such as schools and hospitals, but spending is unlikely to rise as quickly as previously. It means that while more money will be available for public services like schools and hospitals, spending will not rise as quickly as previously.
Details will be announced at Westminster in Chancellor Alistair Darling's first spending review. The details were announced as part of Chancellor Alistair Darling's Comprehensive Spending Review.
The assembly government currently spends £14bn a year - more than a third of it on the National Health Service. Assembly government spending will go up from £14bn to £16bn by 2010, he said.
The budget for Wales has effectively doubled over the past eight years since the assembly was founded, but the finances are expected to get tighter over the next three. Welsh Secretary Peter Hain said extra public spending in Wales would continue to outstrip spending growth across other parts of the UK.
UK government revenues are under pressure and the economy's rate of growth is also expected to slow down. He said: "This is a good deal for Wales.
The result is that Mr Darling's spending review will be less generous than those of Gordon Brown when he was chancellor. "It shows how this Labour government in Westminster is working together with the assembly in Cardiff Bay to deliver for the people of Wales."
It will mean the Labour-Plaid coalition in the assembly government facing tougher budget decisions than its predecessors. The budget for Wales effectively doubled over the past eight years since the assembly was founded, but the finances will be tighter over the next three.
UK government revenues are under pressure and the economy's rate of growth is also predicted to slow down.
The result is that Mr Darling's spending review is less generous than those of Gordon Brown when he was chancellor.
It means the Labour-Plaid coalition in the assembly government will face tougher budget decisions than its predecessors.
If, for example, Cardiff Bay ministers wish to continue to make health and education top priorities, as the UK government is expected to do, other departments will have to tighten their belts that much more.If, for example, Cardiff Bay ministers wish to continue to make health and education top priorities, as the UK government is expected to do, other departments will have to tighten their belts that much more.
Nick Bourne, leader of the Conservatives in the assembly, said he suspected the new assembly government would have "massive difficulty" fulfilling the promises it had made. Ahead of Mr Darling's statement, Nick Bourne, leader of the Conservatives in the assembly, said he suspected the new assembly government would have "massive difficulty" fulfilling the promises it had made.
Earlier, Education Minister Jane Hutt said the policies agreed by the Labour-Plaid Cymru administration were both "ambitious and radical" as well as "realistic and deliverable". Education Minister Jane Hutt said the policies agreed by the Labour-Plaid Cymru administration were both "ambitious and radical" as well as "realistic and deliverable".