Draft Budget announced

The draft budget for 2012-13 was announced yesterday by the Minister for Finance Jane Hutt (Lab, Vale of Glamorgan).

In her statement to the Senedd she said:

"We have a responsibility to use all the levers we have to stimulate the economy against the backdrop of failing economic performance, with the UK Government having no credible plan for long term growth. Our vision for Wales is for a more prosperous economy with better, more efficient public services that equip people to fulfil their potential and maximise their contribution to society and the economy. "

Draft Total Departmental Budget Allocations   
(Change on 2011-12 Supplementary Budget)

• Health & Social Services                                £6.47bn          (+£48m)
• Local Government & Communities                £5.17bn          (+£15.8m)
• Education & Skills                                           £1.96bn          (+£34.6m)
• Housing, Regeneration & Heritage                 £514m            (-£16.7m)
• Central Administration                                    £349m            (-£13.4m)
• Environment & Sustainable Development     £327m            (-£2.9m)
• Business, Enterprise, Technology, Science   £313m            (-£8.9m)

In the Draft Budget Narrative Jane Hutt also:

• Says that in real terms the Welsh Budget will be £1.95bn lower in 2014-15 than in 2010-11, with a fall of £430m for 2012-13. It will also be £1.3bn lower on 2014-15 than the Welsh budget "peak" of 2009-10.
• Says that capital spending will fall by 9.9% in 2012-13 - lower than the 28.6% fall in 2011-12. In real terms capital spending will be 50% less in 2014-15 than in 2009-10.
• Accuses the UK Government of cuts that "go too far, too fast". However says that the Welsh Government is acting responsibly and will play it's role in deficit reduction.
• Calls for borrowing powers for the Welsh Government and a "funding floor" as the first step towards a fairer funding model for Wales.
• Presses the UK Government to modify their proposals to change End Year Flexibility.
• Commits £25m per annum to create 4,000 jobs for 16-24 year olds (Jobs Growth Wales), part funded by Welsh and EU structural funds.
• Commits to increased GP access measures such as Saturday opening.
• Commits to the pledge to increase spending on schools by 1% above overall changes to the Welsh Budget, committing £27million for schools in 2014-15. Cash budgets for schools will grow by more than 5% over the budget period.
• Commits £5million in 2013-14 and 2014-15 to Local Government and Communities to fund an extra 500 PCSO's.
• Allocates an additional £5m (2012-13), £20m (2013-14), £30m (2014-15) to double the number of children in Flying Start.
• Allocates an extra £287.5m over the next three years to the Welsh NHS but also says that the NHS needs to find savings of up to £250m a year, which has been done efficiently to date with saving of up to £300m found in both 2010-11 and 2011-12.
• Protects universal benefits (free prescriptions, free school breakfasts, concessionary bus fares, free swimming schemes).
• Says the Local Government and Communities Department will undertake a prioritisation exercise for National Transport Plan projects.
• Will invest £89.4m in targeted support for business, £14.4m in youth entrepreneurship and start-ups, £18.1m for tourism marketing and £3.9m for "major events" - including a feasibility study for a Cardiff 2026 Commonwealth Games bid.
• Commits £26.4m on "Welsh Learning" and establishing a Welsh Language Commissioner.
• Says that staffing costs at the Assembly will fall by £20million by 2014-15 and the number of staff overall will fall over the period.

Nothing too exciting or overly dramatic there, some questionable decisions (like cutting the Business budget) but it's a difficult, if not a harsh, settlement. Whisper it quietly, but Jane Hutt's quite good at this....