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First coalition budget under fire First coalition budget under fire
(40 minutes later)
The first budget by the coalition Welsh Assembly Government has come under fire from opposition politicians and council leaders.The first budget by the coalition Welsh Assembly Government has come under fire from opposition politicians and council leaders.
On Monday, finance minister Andrew Davies announced £3.64bn extra cash for public services over three years. Finance Minister Andrew Davies has announced £3.64bn extra cash for public services over three years.
But opposition politicians said it was not enough and warned of cuts to key services and council tax rises.But opposition politicians said it was not enough and warned of cuts to key services and council tax rises.
Mr Davies said the assembly government had been funding local government in Wales generously for many years.Mr Davies said the assembly government had been funding local government in Wales generously for many years.
He promised an extra £1.2bn for health services over the next three years, with £120m for childcare and £155m on transport.He promised an extra £1.2bn for health services over the next three years, with £120m for childcare and £155m on transport.
There will be a squeeze on a range of services, particularly those authorities in north Wales and rural Wales Steve Thomas, WLGAThere will be a squeeze on a range of services, particularly those authorities in north Wales and rural Wales Steve Thomas, WLGA
By 2011, public spending will be in excess of £16bn - it is already double the budget of the assembly government in 1999.By 2011, public spending will be in excess of £16bn - it is already double the budget of the assembly government in 1999.
No announcement was made about extra funding for the Wales Millennium Centre (WMC) which is feared to be at risk of insolvency because of £13.5m worth of debts. No announcement was made about extra funding for the Wales Millennium Centre (WMC), which is feared to be at risk of insolvency because of £13.5m worth of debts.
However, BBC Wales has identified an extra £4.1m in 2008, followed by another £5.8m in each of the following two years, which might be used towards the WMC's funding shortfall.However, BBC Wales has identified an extra £4.1m in 2008, followed by another £5.8m in each of the following two years, which might be used towards the WMC's funding shortfall.
Several key pledges from the Plaid Cymru election manifesto would seem to have been deferred or changed as a result of the draft budget.Several key pledges from the Plaid Cymru election manifesto would seem to have been deferred or changed as a result of the draft budget.
Over three years, there has been no money allocated for the free laptop for 11-year-olds scheme in the first year. Over three years, there has been no money allocated for a scheme for free laptops for 11-year-olds in the first year.
However, £300,000 has been set aside for the second year, and £400,000 in the third year. There will be no extra help for pensioners with council tax in the first year, but £4m has been allocated in the next two years.However, £300,000 has been set aside for the second year, and £400,000 in the third year. There will be no extra help for pensioners with council tax in the first year, but £4m has been allocated in the next two years.
DRAFT BUDGET HIGHLIGHTS Total budget around £14.8bn (2008-2009), £15.3bn (2009/10), £15.7bn (2010-2011)Health spending rising from £5.69bn to £6.01bn over three years, an increase of £320m Local government grant rising from £3.8bn to £3.99bn over three years, a 2.2% rise£120m spending for childcare £155m for transport£700,000 for free laptops for primary pupils 2009-2011 DRAFT BUDGET POINTS Total budget around £14.8bn (2008-2009), £15.3bn (2009/10), £15.7bn (2010-2011)Health spending rising from £5.69bn to £6.01bn over three years, an increase of £320m Local government grant rising from £3.8bn to £3.99bn over three years, a 2.2% rise£120m spending for childcare £155m for transport£700,000 for free laptops for primary pupils 2009-2011
Mr Davies told BBC Radio Wales that the commitments outlined in the One Wales document were for a four-year programme of government.Mr Davies told BBC Radio Wales that the commitments outlined in the One Wales document were for a four-year programme of government.
He said: "We will deliver the programme over those four years and not everything will be delivered in year one, or two.He said: "We will deliver the programme over those four years and not everything will be delivered in year one, or two.
"In some cases it will be delivered in years three and four, but we've always made that very clear.""In some cases it will be delivered in years three and four, but we've always made that very clear."
Mr Davies said a later announcement by housing minister Jane Davidson would be made on the pledge of £5,000 for first-time buyers, "targeted on those most in need." Mr Davies said a later announcement by Housing Minister Jane Davidson would be made on the pledge of £5,000 for first-time buyers, "targeted on those most in need."
This is part of spending on affordable housing of £30m.This is part of spending on affordable housing of £30m.
The Welsh Local Government Association (WLGA) said its 2.2% rise did not meet inflationary costs and would result in severe cuts to services and jobs.The Welsh Local Government Association (WLGA) said its 2.2% rise did not meet inflationary costs and would result in severe cuts to services and jobs.
Steve Thomas, WLGA chief executive said: "There will be a squeeze on a range of services, particularly those authorities in north Wales and rural Wales. WLGA chief executive Steve Thomas said: "There will be a squeeze on a range of services, particularly those authorities in north Wales and rural Wales. "The way our financial formulas work, it will mean most of the cuts will fall on those authorities.
"The way our financial formulas work, it will mean most of the cuts will fall on those authorities.
"It will hit social services badly and increase the funding gap between schools in England and Wales, which is already very large.""It will hit social services badly and increase the funding gap between schools in England and Wales, which is already very large."
They've got a less than inflationary increase, that'll mean cuts to core services, so basically as well there will be major council tax rises across Wales Jenny Randerson AM They've got a less than inflationary increase, that'll mean cuts to core services, so basically as well there will be major council tax rises across Wales Jenny Randerson AM, Liberal Democrat
Liberal Democrat AM For Cardiff Central, Jenny Randerson, agreed it was an "impossible budget" for local governments. Liberal Democrat AM Jenny Randerson said it was an "impossible budget" for local government.
She said: "They've got a less than inflationary increase, that'll mean cuts to core services, so basically as well there will be major council tax rises across Wales."She said: "They've got a less than inflationary increase, that'll mean cuts to core services, so basically as well there will be major council tax rises across Wales."
But Mr Davies said that there were "significant resources" going into local authorities, and that it was "extremely premature to talk about any council tax capping.But Mr Davies said that there were "significant resources" going into local authorities, and that it was "extremely premature to talk about any council tax capping.
Shadow finance minister Angela Burns said the budget was "extremely disappointing" and marked the end of the "Assembly Government's reckless eight-year spending spree". Conservative Angela Burns said the budget was "extremely disappointing" and marked the end of the "assembly government's reckless eight-year spending spree".
She said the money allocated for health services was "just not enough".She said the money allocated for health services was "just not enough".
Meanwhile, the Queen will open the new session of Parliament on Tuesday.Meanwhile, the Queen will open the new session of Parliament on Tuesday.
Her speech is expected to set out the UK Government's plans for new laws, including Bills to deal with terrorism, climate change and immigration.Her speech is expected to set out the UK Government's plans for new laws, including Bills to deal with terrorism, climate change and immigration.
The assembly government is expected to be given more freedom to make laws in Wales.The assembly government is expected to be given more freedom to make laws in Wales.