Public service 'rise' condemned

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Council leaders have warned of cuts to key frontline services despite a Welsh Assembly Government promise of more money for public services. Announcing his draft budget on Monday, Finance Minister Andrew Davies outlined Pfund3.64bn new public service investment over the next three years. The Welsh Local Government Association (WLGA) called its 2.2% rise "derisory". It warned of job losses and council tax pressures but Mr Davies said councils had been funded "generously" for years. Before the draft budget announcement, opposition parties had warned services could be cut as the assembly government was funding too many initiatives. Tighter spending limits set by the UK Treasury also added to fears. Although more money will be spent on public services, the increase is not as great as in previous years. An extra Pfund1.2bn has been promised for health services over the next three years. There will be Pfund120m spent on childcare, and Pfund155m on transport. By 2011, public spending will be in excess of Pfund16 billion - it is already double the budget of the assembly government in 1999. It is the first budget under the new coalition government and includes promises made in the the Labour-Plaid deal, such as free laptops for primary school pupils. There is no money for this in the first year, although Pfund300,000 was promised for 2009/10, and another Pfund400,000 the following year. Mr Davies said a later announcement by minister Jane Davidson would be made on the pledge of Pfund5,000 for first-time buyers, "targeted on those most in need." This is part of spending on affordable housing of Pfund30m. He told BBC Radio Wales that as well as promising extra cash, there were plans for more efficient spending. The Finance Minister said: "It's a balance between very significant additional funding, Pfund3.64bn over the next three years, but also making sure that we get the best value for the Welsh pound.