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Public service 'rise' condemned | |
(about 1 hour later) | |
Council leaders have warned of cuts to key frontline services despite a Welsh Assembly Government promise of more money for public services. | |
Announcing his draft budget on Monday, Finance Minister Andrew Davies outlined £3.64bn new public service investment over the next three years. | |
The Welsh Local Government Association (WLGA) said the 2.2% increase promised to local authorities was "derisory". | |
It warned of service cuts, job losses and pressures on council tax. | |
Before the draft budget announcement, opposition parties had warned services could be cut as the assembly government was funding too many initiatives. | Before the draft budget announcement, opposition parties had warned services could be cut as the assembly government was funding too many initiatives. |
It's a balance between very significant additional funding, £3.64bn over the next three years, but also making sure that we get the best value for the Welsh pound Finance Minister Andrew Davies | |
Tighter spending limits set by the UK Treasury also added to fears. | |
Although more money will be spent on public services, the increase is not as great as in previous years. | |
An extra £1.2bn has been promised for health services over the next three years. | An extra £1.2bn has been promised for health services over the next three years. |
There will be £120m spent on childcare, and £155m on transport. | There will be £120m spent on childcare, and £155m on transport. |
By 2011, public spending will be in excess of £16 billion - it is already double the budget of the assembly government in 1999. | |
Mr Davies told BBC Radio Wales that as well as promising the extra cash, there were plans for more efficient spending. | |
It is clear that over the next three years we are facing some serious belt-tightening when it comes to government spending in Wales Shadow Finance Minister Angela Burns | |
The Finance Minister said: "It's a balance between very significant additional funding, £3.64bn over the next three years, but also making sure that we get the best value for the Welsh pound. | |
"It's looking at areas where we can deliver things more efficiently, we can buy goods and services more efficiently, so it's a combination of additional investment, plus more effective use of the Welsh pound." | |
But the WLGA said the 2.2% rise for local government actually represented a below inflation increase. | |
WLGA leader Cllr Derek Vaughan said: "Today's settlement again sees local government at the bottom of the pile when it comes to public finances in Wales. | |
"In this climate the assembly government must prioritise and inject realism in its thinking about what local authorities can achieve, in particular it needs to scale down its own expectations around costly new initiatives." | |
WLGA chief executive Steve Thomas said local government was again the "poor relation of public services." | |
He said: "We see an increase of 4% in health spending across Wales, but local government gets 2.2%. | |
"We see social services as equally important - keeping people out of hospital is as important as hospital services themselves." | |
The Welsh Conservatives also warned of future pressures in health, education, and local government. | |
Shadow finance minister Angela Burns said: "This is an extremely disappointing settlement which marks the end of the Assembly Government's reckless eight-year spending spree. | |
"It is clear that over the next three years we are facing some serious belt-tightening when it comes to government spending in Wales." |