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| Version 1 | Version 2 |
|---|---|
| Budget 2015: Welsh pleas on welfare and economy | Budget 2015: Welsh pleas on welfare and economy |
| (about 5 hours later) | |
| Chancellor George Osborne has been urged to boost the Welsh economy and consider the "human impact" of £12bn welfare cuts as he presents his Budget. | |
| The cuts over three years may include restricting tax credits for families with more than two children. | The cuts over three years may include restricting tax credits for families with more than two children. |
| But Citizens Advice Cymru is concerned it would hit many people hard. | |
| Mr Osborne told MPs his Budget aimed to keep moving the UK to a "higher wage, lower tax, lower welfare country". | |
| He announced an extra £8bn a year for the NHS in England by 2020, which could mean an extra £400m a year for Wales under the rules of the Barnett formula on public spending cross the UK. | |
| The first all-Conservative Budget since 1996 is also expected to change Sunday trading, inheritance tax, tax allowances and the 40p tax rate. | |
| 'Impossible to cope' | 'Impossible to cope' |
| Fran Targett, director of Citizens Advice Cymru, warned that further welfare cuts would make life even more difficult for many people. | Fran Targett, director of Citizens Advice Cymru, warned that further welfare cuts would make life even more difficult for many people. |
| "Although the economy is now growing, every day our local citizens advice offices in Wales are seeing people who are struggling in insecure, low paid work and finding it almost impossible to cope with day-to-day living costs," she said. | "Although the economy is now growing, every day our local citizens advice offices in Wales are seeing people who are struggling in insecure, low paid work and finding it almost impossible to cope with day-to-day living costs," she said. |
| "With further changes to the welfare system to come, it is essential people have access to the support they need to adapt to reforms and help them move forward." | "With further changes to the welfare system to come, it is essential people have access to the support they need to adapt to reforms and help them move forward." |
| Follow the Budget on the BBC | Follow the Budget on the BBC |
| Stuart Ropke, chief executive of Community Housing Cymru, which represents housing associations, added: "The possible breadth of reforms is worrying and many individuals may be hit by two or three different changes. | Stuart Ropke, chief executive of Community Housing Cymru, which represents housing associations, added: "The possible breadth of reforms is worrying and many individuals may be hit by two or three different changes. |
| "Wales has already been disproportionately affected by welfare reform and we fear that further changes will increase in-work poverty across Wales and will impact on the most vulnerable people in our communities." | "Wales has already been disproportionately affected by welfare reform and we fear that further changes will increase in-work poverty across Wales and will impact on the most vulnerable people in our communities." |
| The CBI, which represents major employers, called for measures to boost the economy, including deficit reduction, clarity on business taxes and support for long-term investment. It also wants reassurance over the electrification of the Great Western mainline railway to Swansea. | The CBI, which represents major employers, called for measures to boost the economy, including deficit reduction, clarity on business taxes and support for long-term investment. It also wants reassurance over the electrification of the Great Western mainline railway to Swansea. |
| 'Incremental approach' | 'Incremental approach' |
| Meanwhile, the Federation of Small Businesses in Wales has called for a "rebalancing" of economic activity across the UK, a simpler tax system and improved competition in the banking sector to boost access to loans for small firms. | Meanwhile, the Federation of Small Businesses in Wales has called for a "rebalancing" of economic activity across the UK, a simpler tax system and improved competition in the banking sector to boost access to loans for small firms. |
| Before Mr Osborne's statement, the Welsh government's Finance Minister Jane Hutt said: "Wales is expected, yet again, to suffer because of the UK government's austerity measures." | |
| She said the Welsh budget for 2015/16 was £1.4bn lower in real terms than in 2010/11, with an extra £50m cut for this year announced in June. | She said the Welsh budget for 2015/16 was £1.4bn lower in real terms than in 2010/11, with an extra £50m cut for this year announced in June. |
| "This incremental approach introduces even more uncertainty and makes it more difficult to plan our investment strategically," she said. | "This incremental approach introduces even more uncertainty and makes it more difficult to plan our investment strategically," she said. |
| Analysis by David Cornock, BBC Wales parliamentary correspondent | Analysis by David Cornock, BBC Wales parliamentary correspondent |
| A new Conservative MP was frank: "I hope it won't be too severe." | A new Conservative MP was frank: "I hope it won't be too severe." |
| Even some on George Osborne's own side were apprehensive before his seventh Budget. | |
| They know that chancellors of both parties tend to use post-election budgets to "front-load" the pain in the form of tax rises or spending cuts or both. | They know that chancellors of both parties tend to use post-election budgets to "front-load" the pain in the form of tax rises or spending cuts or both. |
| The hope is that by the time the next election comes along, voters will be grateful for whatever goodies are then on offer and have forgotten the pain. | The hope is that by the time the next election comes along, voters will be grateful for whatever goodies are then on offer and have forgotten the pain. |
| We may not know the nature of the pain yet but we do know where it will hurt. | We may not know the nature of the pain yet but we do know where it will hurt. |
| The prime minister has highlighted the "merry-go-round" of the state using tax credits to subsidise low wages. | The prime minister has highlighted the "merry-go-round" of the state using tax credits to subsidise low wages. |
| In Wales, 238,000 families receive an average of £6,134 each per year. | In Wales, 238,000 families receive an average of £6,134 each per year. |
| Welsh Secretary Stephen Crabb said there is no evidence Wales will be negatively impacted by the proposed cut in the benefits cap from £26,000 to £20,000 outside London. | Welsh Secretary Stephen Crabb said there is no evidence Wales will be negatively impacted by the proposed cut in the benefits cap from £26,000 to £20,000 outside London. |
| He also said the Welsh government is being cushioned from the deepest public spending cuts because of the Barnett formula, which determines changes in its budget. | He also said the Welsh government is being cushioned from the deepest public spending cuts because of the Barnett formula, which determines changes in its budget. |