Welsh Government announces draft budget for 2013/14

The Welsh Government’s spending plans for 2013/14 year have been announced by Finance Minister Jane Hutt.

The Minister has set out a £15.4bn draft budget which the Welsh Government claims will stimulate growth and jobs. Opposition parties have labelled it a “Groundhog Day” budget after similar claims last year.

Labour, which does does not have outright control of the Assembly will need help from opposition parties to get the budget approved.

Ms Hutt said: “Our number one priority is to deliver a Budget for growth and jobs which will create a more prosperous Wales, by encouraging economic growth and creating and sustaining jobs.

“Despite the Welsh Budget being £2.1bn lower in real terms by 2014/15 than at its peak in 2009/10 as a result of cuts imposed by the UK Government – including a 45% cut in capital over that period – we have ensured all Welsh Government departments see an increase in funding.

“We stand by the decisions we have taken that underpin our Budget – our investments in schools and skills, in health and in social services to ensure we can deliver our Programme for Government.”

The Minister announced an additional £175m in capital investment over the next two years to support strategically important projects throughout Wales, creating or supporting up to 3,000 jobs and boosting the number of affordable homes by over 800.

Key measures in the budget include:

• £65m for improving transport – including £40m for the Brynmawr to Tredegar section of the A465 Heads of the Valley Dualling Programme and £25m for improvements to the A55 Conwy Tunnel;
• £30m for hospitals – comprising £18m to support the redevelopment of Morriston Hospital, Swansea and £12m for adult mental health facilities in Llandough Hospital, Cardiff and Glanrhyd Hospital, Bridgend;
• £25m for schools & colleges – including £15m in 2013-14 to accelerate a number of schemes under the 21st Century Schools programme;
• An additional £10m in 2014-15 for high-speed broadband to ensure universal access by 2015. This builds on the additional £10m we are allocating in 2013-14 for Next Generation Broadband Wales from the Centrally Retained Capital Fund;
• an additional £13m for capital investment in Flying Start.
• £12m to expand the Welsh Housing Partnership;
• £10m domestic energy efficiency;
• An additional £10m to support a programme of vital flood and coastal defence improvements across Wales;

Welsh Conservative finance spokesman Paul Davies said: “It’s Groundhog Day for our National Health Service. Snubbed again and still facing the toughest funding settlement in the UK.”

Finance Minister Hutt added: “We want a Wales with a strong economy, a Wales with 21st Century networks for transport, IT and energy, a low-carbon Wales and a skilled and efficient Wales with strong public services.

“Building on the decisions we have we made over the last few years, we are well-placed to face the challenges ahead and are clear in the direction we are taking to deliver for Wales.”