UK Government heeds the Welsh Government’s calls for a capital boost

Responding to the UK Government’s Autumn Statement, the First Minister Carwyn Jones welcomed the extra capital funding but warned that Wales still faces some very difficult spending decisions.

First Minister Carwyn Jones said:

“It is good to see the UK Government have listened to our call for extra infrastructure investment – we have been pressing the case for some time and are pleased that they have responded.

“Despite this extra money, it must be remembered that our capital budget in 2014-15 will still be 39 per cent lower in real terms than it was in 2009-10. The fact is we will still be experiencing deep cuts that will only hinder us in our attempts to boost economic growth.

“The additional capital allocations are smaller in comparison to the additional £500 million capital investment we announced yesterday for the A465 and the 21st Century Schools Programme.

“The Chancellor has also announced a 3 per cent cut in real terms to our revenue budgets meaning we will have to make some very difficult funding choices.

“The reality of this Autumn Statement is Wales is still facing a very tough public spending environment for years to come.”

Commenting on the other provisions of the Statement, the First Minister added:

“We are delighted the UK Government has listened to our stance on regional pay and that national pay arrangements in the NHS and prison service will continue and there will be no changes to civil service arrangements.

“It is good to see that the UK Government has made clear its commitment to continuing to engage with us to explore options for improving the M4 in South Wales and that it plans to issue an initial response to the Silk Commission in Spring 2013.

“The extension of the Small Business Rate Relief Scheme is also to be welcomed. Importantly, the Enhanced Capital Allowances for Ebbw Vale and Haven Waterways Enterprise Zones will allow us to support business investment and growth in Welsh Enterprise Zones.”