| Tough financial times are ahead for Wales with 3% year on year reductions for revenue spending and 10% year on year for capital, Minister for Business and Budget Jane Hutt said today.
But she said the Welsh Assembly Government was committed to using its capital investment to "deliver."
The Minister said: "We know that we are looking at an increasingly difficult financial situation for the public sector in the coming years.
"We cannot say for certain what our budget will be in coming years but I have already set out some hard-hitting planning assumptions for the Assembly Government's budget planning round - 3% year on year reductions for revenue spending and 10% year on year for capital.
"Wales will play its full part in making the efficiency savings necessary to help reduce the deficit, but cutting too deep, too soon could endanger the fragile economic recovery.
"We have made it clear that our priority is to protect and improve the public services that people rely on, and to continue to lead Wales into economic recovery. Although we are faced with making difficult decisions on spending, we are still using capital investment to deliver projects that make a real difference, like providing schools, hospitals and housing.
"This sort of investment also boosts the construction industry, creating and safeguarding jobs.
"Our Strategic Capital Investment Fund continues to provide money for important projects which improve services and boost the economy.
"Nearly £120m was allocated in tranche 2 of SCIF.
£24m is being spent on new schools. £38m was allocated to developing a low carbon region in the Heads of the Valleys and the all-Wales low carbon building programme, including boiler replacement, wall insulation and the creation of a low carbon region in the heads of the valleys where solar panels have been installed in 1,800 hones and 12 schools. £36m has been spent on 519 new affordable homes and plots of land across Wales, benefitting 48 developers and hence protecting and creating local jobs. £7.8m has been spent on coastal defence, protecting over 300 homes. Twenty flood and coastal defence projects in total have been approved.
"We know that there are tough times ahead but we will continue to use our resources to maximum effect for the people of Wales." |
