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| 'Grave concern' over tight funds | |
| (40 minutes later) | |
| A funding shortfall could hit the building of new roads, schools or hospitals, an influential all-party Welsh assembly committee has warned. | |
| The finance committee's report said a lack of funds could affect the assembly government's ability to deliver One Wales coalition deal promises. | |
| It also has "grave concerns" the £15bn a year draft budget could hit core council services and urged a rethink. | |
| The assembly government said it was considering the conclusions. | The assembly government said it was considering the conclusions. |
| The committee, which is made up of a cross-party group of assembly members, has expressed fears that there may be a shortfall in funding for new capital projects. | |
| These include the building of new roads, schools or hospitals. | These include the building of new roads, schools or hospitals. |
| Core council services could also be affected by the budget settlement, the report concluded. | Core council services could also be affected by the budget settlement, the report concluded. |
| The AMs fear that promises made in the One Wales agreement which led to the creation of the Labour Plaid Cymru coalition, could be threatened by the shortfall. | The AMs fear that promises made in the One Wales agreement which led to the creation of the Labour Plaid Cymru coalition, could be threatened by the shortfall. |
| They say it is also unclear how hundreds of millions of pounds in efficiency savings are to be met. | They say it is also unclear how hundreds of millions of pounds in efficiency savings are to be met. |
| The AMs also complain that the presentation of the budget created confusion, and have grave concerns that the local government settlement is inadequate to safeguard core services. | The AMs also complain that the presentation of the budget created confusion, and have grave concerns that the local government settlement is inadequate to safeguard core services. |
| The committee's report also raise concerns about how money is to be shared out between departments. | The committee's report also raise concerns about how money is to be shared out between departments. |
| Core services | Core services |
| In particular, hundreds of millions of pounds are being kept back to be distributed by a board led by the finance minister Andrew Davies, a system described as "still under development". | In particular, hundreds of millions of pounds are being kept back to be distributed by a board led by the finance minister Andrew Davies, a system described as "still under development". |
| In November, he announced a total draft budget for 2008-2009 of £14.8bn, which will rise to £15.7bn by 2010/2011. | In November, he announced a total draft budget for 2008-2009 of £14.8bn, which will rise to £15.7bn by 2010/2011. |
| Alun Cairns AM, committee chairman, said the most urgent concern was the funding allocation made available for local government and the potential for a cut to core services. | Alun Cairns AM, committee chairman, said the most urgent concern was the funding allocation made available for local government and the potential for a cut to core services. |
| "We took some evidence from the Welsh Local Government Association (WLGA) and other interested parties and it appeared to us that it is a tight financial settlement and there are expectations to make efficiency savings from them," said Mr Cairns. | "We took some evidence from the Welsh Local Government Association (WLGA) and other interested parties and it appeared to us that it is a tight financial settlement and there are expectations to make efficiency savings from them," said Mr Cairns. |
| "But bearing in mind the additional cost pressures within the system such as the ageing population and demands for equal pay, there will be an increase in the amount of money that they need to spend. | |
| "The minister will need to think again if we are not going to have an unacceptable increase in levels of council tax." | "The minister will need to think again if we are not going to have an unacceptable increase in levels of council tax." |
| Mr Cairns also said the committee was seeking evidence on the commitments contained within the assembly's plan for the next four years. | Mr Cairns also said the committee was seeking evidence on the commitments contained within the assembly's plan for the next four years. |
| "Poor relation" | "Poor relation" |
| "We are asking for clarification on which ones to pilot, which ones will be fully developed policies as well as details of capital spend elsewhere." | "We are asking for clarification on which ones to pilot, which ones will be fully developed policies as well as details of capital spend elsewhere." |
| Steve Thomas, the chief executive of the WLGA, said he supported the call for a review of funding for local government. | Steve Thomas, the chief executive of the WLGA, said he supported the call for a review of funding for local government. |
| "It is a tight settlement but strategic choices have been made and the assembly government must put the emphasis on front line services," he said. | "It is a tight settlement but strategic choices have been made and the assembly government must put the emphasis on front line services," he said. |
| The majority of members of the committee, which was created around six months ago to scrutinise the budget process, come from the Labour-Plaid Cymru coalition. | |
| An assembly government spokesperson said: "We are considering the conclusions and recommendations of the finance committee's report. | An assembly government spokesperson said: "We are considering the conclusions and recommendations of the finance committee's report. |
| "The proper time to respond will be in the assembly debate on the draft budget on 11 December." | "The proper time to respond will be in the assembly debate on the draft budget on 11 December." |