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| First coalition budget under fire | First coalition budget under fire |
| (about 7 hours later) | |
| The first budget by the coalition Labour-Plaid Cymru Welsh Assembly Government has come under fire from the opposition and council leaders. | The first budget by the coalition Labour-Plaid Cymru Welsh Assembly Government has come under fire from the opposition and council leaders. |
| Finance Minister Andrew Davies has 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, WLGA | There 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. |
| Meanwhile, the Queen has opened the new session of Parliament, which included new legislation giving the assembly government the power to make new laws. | |
| This would include the power to introduce charges for the new M4 relief road and other trunk roads, legislation on inspection of pre-16 education and training, and draft laws on local development plans and the Welsh spatial plan. | |
| 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 | |
| Monday's assembly government budget was the first since Labour and Plaid formed a coalition in Cardiff Bay after May's assembly election. | |
| Several key pledges from the Plaid election manifesto would seem to have been deferred or changed as a result of the draft budget. | Several key pledges from the Plaid 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 a scheme for free laptops for 11-year-olds 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. |
| Affordable housing | |
| Mr Davies told BBC Radio Wales that the commitments outlined in the One Wales document which formed the basis of the coalition deal were for a four-year programme of government. | Mr Davies told BBC Radio Wales that the commitments outlined in the One Wales document which formed the basis of the coalition deal 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. |
| 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 | |
| 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. |
| 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. | 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. |
| "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." |
| Liberal Democrat AM Jenny Randerson said it was an "impossible budget" for local government. | 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. |
| Conservative 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". |