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Councils and schools cash boost Councils and schools cash boost
(about 1 hour later)
Extra money for local councils and to cut class sizes for three-to-seven year olds are included in the Welsh Assembly Government's three year budget plans.Extra money for local councils and to cut class sizes for three-to-seven year olds are included in the Welsh Assembly Government's three year budget plans.
Finance Minister Andrew Davies said "real improvements" would result from a further £32m for early years education.Finance Minister Andrew Davies said "real improvements" would result from a further £32m for early years education.
Mr Davies said £4.7m extra for councils meant all would get at least 2% more central government cash from April.Mr Davies said £4.7m extra for councils meant all would get at least 2% more central government cash from April.
The Lib Dems said he had "merely tinkered" and warned council taxes would rise and services would be cut. Local councils said the budget's publication was "little more than an exercise in window dressing".
Mr Davies said: "The final budget allocates additional funding to local government to ensure that all local authorities will receive an increase in assembly government funding of at least 2% next year, bringing the average increase up to 2.4%." Mr Davies said: "The final budget allocates additional funding...to ensure that all local authorities will receive an increase in assembly government funding of at least 2% next year, bringing the average increase up to 2.4%."
Under his draft plans, Powys was set for a 1% increase, with central funding for Anglesey, Blaenau Gwent, Conwy, Gwynedd and Newport originally due to rise be less than the 2% floor now set by the minister. Under his draft plans, Powys was set for a 1% increase, with central funding for Anglesey, Blaenau Gwent, Conwy, Gwynedd and Newport originally due to rise by less than the 2% floor now set by the minister.
The position for front line services is particularly daunting Derek Vaughan, Welsh Local Government Association
In a statement Mr Davies said that he wanted more efficiency from authorities.In a statement Mr Davies said that he wanted more efficiency from authorities.
"We will be working with local government to simplify funding arrangements, target areas of underperformance and develop minimum standards of service delivery across Wales," he said."We will be working with local government to simplify funding arrangements, target areas of underperformance and develop minimum standards of service delivery across Wales," he said.
Mr Davies said a further £14m in the financial year 2009/10 and £18m in 1010/11 to cut class sizes meant there was "substantial new investment in Welsh schools which will deliver real improvements in early years education, where the long-term benefits are greatest".Mr Davies said a further £14m in the financial year 2009/10 and £18m in 1010/11 to cut class sizes meant there was "substantial new investment in Welsh schools which will deliver real improvements in early years education, where the long-term benefits are greatest".
He said that over the next three years, assembly government spending would reach £16bn, more than double the £7bn when the assembly was created in 1999. He explained that, over the next three years, assembly government spending would reach £16bn, more than double the £7bn when the assembly was created in 1999.
The changes, he said, resulted from consulting "widely" on the financial proposals. The changes he had made, he said, resulted from consulting "widely" on the financial proposals.
'Potentially catastrophic' Hobson's choice
Welsh ministers had warned "tough" decisions were needed due to less cash coming to them from the UK Government.Welsh ministers had warned "tough" decisions were needed due to less cash coming to them from the UK Government.
But Liberal Democrat finance spokesperson Jenny Randerson said the government had "merely tinkered to offset the worst aspects" of the local government deal. Whilst expressing satisfaction that no council would receive less than 2% extra assembly government money, the Welsh Local Government Association (WLGA) said it was "sad" the association's warnings "had not been heeded".
Ms Randerson said the councils who were set for increases below 2% had gone from a "potentially catastrophic situation" to one which is "merely...very bad". Leader Derek Vaughan warned: "We face a significant range of difficult choices ahead - it is, however, a 'Hobson's choice' since the only alternative to raising council tax is to cut services.
"The position for front line services is particularly daunting with the gap between education funding in Wales and England widening," he added.
Powys council said the "change of heart" by the assembly government was "good news" but maintained the local authority still had a "difficult task balancing its annual budget".
Liberal Democrat assembly finance spokesperson Jenny Randerson agreed ministers had "merely tinkered to offset the worst aspects" of the local government deal.
Conservative assembly group leader Nick Bourne said "the few changes made to the dismal draft budget have done nothing to disguise the fact that we are facing some serious belt-tightening over the next three years".
Assembly members vote on the budget plans next week.