Plaid falls out with Labour due to budget allocation

DOUBTS have been raised about the sustainability of a “compact” between Labour and Plaid Cymru after the two parties fell out over the amount of cash spent on projects in Cardiff and South Wales.

After last May’s Assembly election, when Labour won just 29 of the 60 seats, Labour and Plaid agreed to cooperate in policy formulation across a range of areas. A number of liaison committees were established, one of which covers matters concerning the Budget.

Finance Secretary Mark Drakeford and Plaid Cymru Economy spokesman Adam Price have generally got on well.

But earlier this week they had a tense exchange in the Senedd when it became clear that Plaid was going to vote against the Welsh Government’s Supplementary Budget, which includes £180m for the Welsh NHS, for the current financial year, which ends on March 31.

This Budget was not subject to the compact because it was negotiated before last May’s election between Labour and the Liberal Democrats.

Mr Price told AMs that “a staggering 95% of the identifiable projects in the Supplementary Budget were based in Cardiff or the south east of Wales”.

He said: “There may well be projects for North Wales and Mid and West Wales but we simply don’t know due to the lack of information and lack of transparency in this Budget.

He added that Plaid Cymru “welcomes increased investment for the south east”, saying: “We need our capital region to thrive alongside an equitable distribution of investment for every region.”

But he said: “Once again this Labour Government has arrogantly come to the Assembly Chamber believing it can railroad through millions of pounds of public spending changes without giving AMs or indeed members of the public sufficient information.

“Labour should learn by now that Plaid Cymru AMs have the audacity to scrutinise – and the willingness to oppose if they do not meet the standards that taxpayers deserve when their money is spent. Our votes should never be taken for granted.”

Because of Plaid’s opposition Labour got the Supplementary Budget through with a majority of just one vote.

A spokesman for First Minister Carwyn Jones said: “Plaid’s decision to vote in this way and at this time looks like nothing more than a desperate bid to detract from the media attention focusing on Neil McEvoy and his suspension for bullying a female member of staff at Cardiff council.

“We don’t intend to give them that satisfaction and won’t comment any further on their decision. The people of Wales can be satisfied that the Supplementary Budget has passed and that the NHS in Wales is now better funded by £180m.”

A senior Labour source told us: “You won’t find a single Labour AM who was happy with what Plaid did. The fact is that much of the money has been earmarked for outside Cardiff.

“The compact is still in place but its continuation is based on the will of the two parties. Either could decide to end it at any time.

“The fact is that millions of pounds are going into the health service across Wales, including Adam Price’s patch. Voters will be made aware that Plaid voted against this.”

A spokeswoman for Plaid Cymru said: “It should come as no surprise to the Welsh Government that Plaid Cymru, who did not support this current budget last March, would vote against this motion.

“The compact between the Welsh Government and Plaid Cymru is not a confidence and supply agreement and so agreements must be sought on a case-by-case basis through the structures we have established.

“There were no such discussions or agreements on the Supplementary Budget. Plaid Cymru will only support budgets when we are satisfied that the whole of Wales will benefit fairly.”