Friday 25 November 2011

Labour and Lib Dems agree budget deal

As I predicted last week, Labour and the Lib Dems have broken the deadlock to agree a budget that will now surely pass the Assembly.

The deal includes:


  • An extra £20million for the "Pupil Deprivation Grant".
  • A £38.9million economic stimulus package over the next two years to be spent on capital investment in schools, skills, and an increase in funding for the Arbed energy efficiency scheme.
  • Any consequentials resulting from the UK Government's Autumn Statement will be discussed between the two leaders.

On the surface of it, it looks as though Kirsty Williams has sold herself short. It will only become interesting if we know the scale of any of those possible consequentials from the Chancellor next week. Carwyn Jones and Kirsty Williams really must be hoping for something significant.

If there are substantial sums of money involved, particularly capital investment, then it might be enough to stave off the inevitable backlash on the economy from Plaid Cymru. Ieuan Wyn Jones has an open goal here.

If the Welsh Government think this tinkering really will "ensure jobs and growth can be delivered" then we're in deeper trouble than I thought.

1 comment:

  1. In reality not even Plaid's demands would have averted the coming economic troubles. But, it seems like a missed opportunity that they haven't put in place any serious measures to keep people in jobs. Labour have been bailed out by the Lib Dems here.

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