By Vivienne Russell | 7 May 2014
The Welsh Government has confirmed it intends to make full use of the direct borrowing powers it will be granted following the passage of the Wales Bill later this year.
In a statement to the Welsh Assembly yesterday, finance minister Jane Hutt announced that £1bn would be invested in Welsh infrastructure projects between 2017/18 and 2021/22.
This would include £500m in direct borrowing that the Cardiff administration will be granted once the Wales Bill is enacted. The remainder will be made up from revenue-funded financial instruments.
Hutt announced that two new infrastructure projects would benefit from the investment. These are the A465 road, which is to be dualled between Dowlais Top and Hirwaun at cost of £300m. In addition, £210m will be spending on the construction of a specialist cancer care centre at the Velindre NHS Trust.
Hutt said the Welsh government was currently considering the results of a consultation on enhancing the M4 motorway around Newport and a decision was expected this summer. Upgrading the M4 ‘would feature as an early priority deployment of our direct borrowing powers’, she said.
Hutt went on: ‘The £1bn infrastructure investment that I have announced today represents a vital injection of investment at a time when the economy and our health services most need it.
‘It reflects this Welsh Government’s desire to use the full range of its resources to boost investment. We are providing a reasoned, affordable and desirable alternative to the austerity measure that would choke off investment had we not acted decisively.’
According to the Welsh Government, the £1bn investment has the potential to crater 6,500 new jobs and means that, between 2012 and 2022, the Cardiff administration will have boosted infrastructure spending by around 9% each year.
