By Paul Dicken in Cardiff
9 October 2009
The Welsh Assembly Government has announced it will protect health and youth employment budgets from cuts while spending across the public sector is restrained.
The WAG’s Draft budget 2010/11, published on October 5, said that Wales had to deal with less funding than expected from Westminster. There was also a shortfall in capital funds after projects were brought forward as an economic stimulus measure.
Finance Minister Andrew Davies said the budget involved ‘making tough decisions’.
‘Our approach to living within tighter budgets is framed around efficiencies – that means focusing on reducing costs and obtaining greater value from our investment rather than reducing services,’ he said.
Areas that will receive significant additional funding are programmes to tackle youth unemployment, boosted by £20m; health services, which will receive £50m to support structural changes and demand increases; and local government, which will be given £34m for organisational reform.
Any additional money is a result of ‘reprioritisations’ of funding and projected savings. In health – the largest area of spending – further initiatives will save £91.6m.
Only the environment and housing, local government, and health and social services departments will receive real-terms increases. Real-terms funding will decrease for economy, transport, and children, education and skills.
Areas with the most dramatic funding cuts are the WAG’s own central services and administration and the Public Services and Performance Department, which has had its budget cut by 1%.
The Welsh Local Government Association said the overall funding increase of 2.1% for local government was ‘by far the worst financial settlement since devolution’. It called for a funding ‘floor’ to protect authorities that were likely to be given a below 1% increase in Revenue Support Grant.
WLGA leader John Davies said he welcomed the WAG’s call for a ‘Team Wales’ response to what were severe budget cutbacks.
‘The challenge for all parts of the public sector will be to prioritise frontline services and to remove unnecessary and costly overheads in areas such as regulation and inspection,’ he said.
The draft budget drew criticism from the Welsh Conservatives and Liberal Democrats, with both parties criticising the decision to reduce spending on economic development.
Welsh Conservative leader Nick Bourne said the budget showed ‘Labour’s inability to manage finances, both at Westminster and the Assembly’.
9 October 2009
The Welsh Assembly Government has announced it will protect health and youth employment budgets from cuts while spending across the public sector is restrained.
The WAG’s Draft budget 2010/11, published on October 5, said that Wales had to deal with less funding than expected from Westminster. There was also a shortfall in capital funds after projects were brought forward as an economic stimulus measure.
Finance Minister Andrew Davies said the budget involved ‘making tough decisions’.
‘Our approach to living within tighter budgets is framed around efficiencies – that means focusing on reducing costs and obtaining greater value from our investment rather than reducing services,’ he said.
Areas that will receive significant additional funding are programmes to tackle youth unemployment, boosted by £20m; health services, which will receive £50m to support structural changes and demand increases; and local government, which will be given £34m for organisational reform.
Any additional money is a result of ‘reprioritisations’ of funding and projected savings. In health – the largest area of spending – further initiatives will save £91.6m.
Only the environment and housing, local government, and health and social services departments will receive real-terms increases. Real-terms funding will decrease for economy, transport, and children, education and skills.
Areas with the most dramatic funding cuts are the WAG’s own central services and administration and the Public Services and Performance Department, which has had its budget cut by 1%.
The Welsh Local Government Association said the overall funding increase of 2.1% for local government was ‘by far the worst financial settlement since devolution’. It called for a funding ‘floor’ to protect authorities that were likely to be given a below 1% increase in Revenue Support Grant.
WLGA leader John Davies said he welcomed the WAG’s call for a ‘Team Wales’ response to what were severe budget cutbacks.
‘The challenge for all parts of the public sector will be to prioritise frontline services and to remove unnecessary and costly overheads in areas such as regulation and inspection,’ he said.
The draft budget drew criticism from the Welsh Conservatives and Liberal Democrats, with both parties criticising the decision to reduce spending on economic development.
Welsh Conservative leader Nick Bourne said the budget showed ‘Labour’s inability to manage finances, both at Westminster and the Assembly’.
