‘Our draft Budget is aimed at protecting key public services’
FINANCE Minister Jane Hutt has declared in advance of what is expected to be a tough Welsh Government Budget that she and her colleagues will be “sticking to our priorities and principles”.
The draft Budget for 2016-17 has been finalised hurriedly since Chancellor George Osborne’s Spending Review two weeks ago.
Ms Hutt told journalists: “We’ve been planning over the summer months, we’ve been consulting and getting a very clear picture of what priorities should be for the people of Wales and our businesses – protecting the public services that people value the most has been crucial.
“I can say this is going to be a Welsh Labour Budget which is about delivering a fairer, better Wales, investing for the future. Our Wellbeing of Future
Generations Act has played a part in planning the Budget settlement.
“It has to be a Budget for all generations – from the earliest years, where we know if we want to tackle poverty we have to invest at the start of life and ensure we can then progress through further and higher education into prospects for apprenticeships and jobs and a buoyant economy.”
Asked whether it would be possible to maintain the commitment made by First Minister Carwyn Jones to keep school spending 1% above the block grant from Westminster, Ms Hutt said: “This is an extremely difficult and challenging Budget because we’ve had five years of cuts and we’ve got another five years of cuts.
“In fact, we’ve got a 3.6% cut in real terms. You’ll have to wait to see how I’ve handled this.”
Last year Ms Hutt agreed a twoyear deal with the Liberal Democrats. In return for the five-strong group’s support, she committed to increase the Pupil Deprivation Grant, with each school receiving £1,150 in 2016-17 for every pupil eligible to receive free school meals. The grant has also been extended to under fives, worth £300 per pupil on free school meals.
In addition a ‘Youth Travellers Concessionary Fare Scheme’ has been introduced for 16-18 year olds and there is extra childcare investment for further education students in Wales who are parents, Funding has also been approved for around 5,000 new apprenticeships, plus £95m capital investment earmarked for infrastructure, designed to provide a strong boost to jobs and the economy.
An agreement was also reached that no construction of the M4 relief road will start before the Assembly election, with a detailed Environmental Impact Study into the project commissioned.
In advance of the Budget, Bob Wellington, who leads both the Welsh Local Government Association and Torfaen council, said local authorities were calling for an urgent investment into preventative local public services.
He said: “While I recognise that the Welsh Government has offered a level of relative protection to local councils in Wales, they have not had an easy ride.
“Over recent years local councils have seen significant job loss- es, widespread scaling back of local service provision and a loss of many of the local facilities that our communities hold most dear.
“With councils facing the extremely daunting prospect of a £940m budget shortfall by 2020, the harsh reality is that if we continue with the level of funding reductions seen in recent years, we would quickly reach a tipping point at which vital local public services enter a cycle of terminal decline.”
David Morgan, policy manager of the Royal Institution of Chartered Surveyors in Wales, said: “While recognising these are difficult times for the Budget, overall the long term economic benefits from good infrastructure particularly transport infrastructure cannot be denied.
“The short term benefits from the construction multiplier are also clear.
“With the welcome focus by the Welsh Government on apprenticeships, it is vital that adequate resources are given to transport and infrastructure generally throughout Wales to ensure this talent line can be supported in the long term.”