Bourne & Gillan: £1bn black hole in Labour-Plaid spending plans

Welsh Conservatives today say they have exposed a £1bn black hole in Assembly Government spending this year.

Their analysis of budgets for 2010-11 reveals that money the Labour-Plaid administration tried to pour into key areas before the General Election have left huge funding gaps for the months ahead they say.

They say that their research shows:

  • In real terms, the Assembly Government’s total managed expenditure across all departments will have been cut by nearly £1bn (or 5.9 per cent)
  • The health and social services budget has been cut in real terms by nearly £500mn (or 7.3 per cent)
  • As we emerge from recession, the economy and transport budget has been cut in real terms by 11% or nearly £200mn
  • Despite a commitment to housing, this budget has declined by the largest amount – 16%

It also emerged today that measures outlined in the 2009 pre-Budget report and 2010 Budget could lead to a cut of up to £1.2bn in the Welsh block grant from Whitehall up to 2013.

Commenting, Assembly leader Nick Bourne AM said:

“These figures expose the financial black hole at the heart of Labour and Plaid Cymru’s spending plans for the next 12 months.

“We have repeatedly said the Assembly Government needs to take a long, hard look at its spending priorities, protect frontline services, and cut out waste and bureaucracy.

“Labour and Plaid Cymru need to be honest with people about their spending plans for the next 12 months.

“Labour and Plaid have failed to be straight with the Welsh people.

Carwyn Jones and Ieuan Wyn Jones should tell us why their parties have been hiding these massive cuts to spending in key areas such as health, education and economic development.

“Rather than blaming everyone else for the state of the Welsh economy, both need to come clean and explain the effect these cuts will have on hospitals, schools and jobs.  It’s the least the Welsh electorate deserves.”

Shadow Secretary of State for Wales Cheryl Gillan said:

“Everyone, including the Chancellor Alistair Darling, accepts there will be cuts after the election.

“We have set out our plans to cut Government waste this year so we can protect frontline public services and stop Labour’s jobs tax.

“As a result of Labour’s reckless spending at Westminster and Labour and Plaid’s £1bn black hole in the Assembly frontline services in Wales will be put under massive pressure.”

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