Yesterday, the Chancellor of the Exchequer announced the Comprehensive Spending Review in the House of Commons, an event which he has brought forward and which will spell out the Government’s spending plans for the next three years.
Given the events of this weekend over his decision not to go to the country, this exceptionally important statement was in danger of being overshadowed by the ‘non-election’ fallout and yet for Wales, it was probably the most important political event since the Assembly election.
This is because, despite devolved powers, the politicians in London still hold the purse strings when it come to Assembly spending and essentially determine whether, all things being equal, we can allocate additional funding to develop our schools, save our local hospitals from closure and improve local services.
Since devolution, the Labour Government in Westminster has poured billions of pounds into Wales.
The amount of funding received by Cardiff Bay has increased from £8 billion in 1999 to £14.5 billion in 2006. To put this in simple terms, the Assembly now has an additional £2,200 pounds to spend annually on every man, woman and child living in Wales.
Leading politicians, including the current Secretary of State for Wales, have made it absolutely clear that the average ten per cent increase in the funding that Wales has received from Westminster during the last eight years would not continue. Not surprisngly, the settlement has been considerably lower than even the most optimistic of Labour's supporters expected, despite the spin from Peter Hain's office.
This will have considerable knock on effects on the ability of the new Assembly government to fulfil its coalition agreement, especially in areas such as health where rationalisation, rather than expansion, is likely to be the only option available to ministers in ensuring that service delivery will not be cut any further.
Of course, this will be spun as ‘tough choices’ for Wales but it will inevitably accelerate the process of hospital closures and the centralisation of services in one or two centres across North Wales.
With the local government elections on the horizon for May 2008, some have also suggested that the Assembly, to deal with relative cuts in their funding, may look to pass a greater burden onto councils. The result of this could be an inevitable increase in council tax to deal with the additional services that local authorities will have to manage without any additional cash from Cardiff.
This settlement means that the days of high levels of public spending in Wales will be at an end, at least for the foreseeable future. Many will be asking whether the money has been spent wisely during the last eight years and whether public services have improved in Wales.
Certainly, there will be challenges for a coalition government made up of two parties which believe in high levels of public sector involvement and a limited role for the private sector.
How many election promises regarding hospitals and schools will be sacrificed at the altar of the cuts in public spending?
Only our politicians have the answer to that but the next few months promises to be an interesting and possibly, turbulent time in Welsh politics.
Given the events of this weekend over his decision not to go to the country, this exceptionally important statement was in danger of being overshadowed by the ‘non-election’ fallout and yet for Wales, it was probably the most important political event since the Assembly election.
This is because, despite devolved powers, the politicians in London still hold the purse strings when it come to Assembly spending and essentially determine whether, all things being equal, we can allocate additional funding to develop our schools, save our local hospitals from closure and improve local services.
Since devolution, the Labour Government in Westminster has poured billions of pounds into Wales.
The amount of funding received by Cardiff Bay has increased from £8 billion in 1999 to £14.5 billion in 2006. To put this in simple terms, the Assembly now has an additional £2,200 pounds to spend annually on every man, woman and child living in Wales.
Leading politicians, including the current Secretary of State for Wales, have made it absolutely clear that the average ten per cent increase in the funding that Wales has received from Westminster during the last eight years would not continue. Not surprisngly, the settlement has been considerably lower than even the most optimistic of Labour's supporters expected, despite the spin from Peter Hain's office.
This will have considerable knock on effects on the ability of the new Assembly government to fulfil its coalition agreement, especially in areas such as health where rationalisation, rather than expansion, is likely to be the only option available to ministers in ensuring that service delivery will not be cut any further.
Of course, this will be spun as ‘tough choices’ for Wales but it will inevitably accelerate the process of hospital closures and the centralisation of services in one or two centres across North Wales.
With the local government elections on the horizon for May 2008, some have also suggested that the Assembly, to deal with relative cuts in their funding, may look to pass a greater burden onto councils. The result of this could be an inevitable increase in council tax to deal with the additional services that local authorities will have to manage without any additional cash from Cardiff.
This settlement means that the days of high levels of public spending in Wales will be at an end, at least for the foreseeable future. Many will be asking whether the money has been spent wisely during the last eight years and whether public services have improved in Wales.
Certainly, there will be challenges for a coalition government made up of two parties which believe in high levels of public sector involvement and a limited role for the private sector.
How many election promises regarding hospitals and schools will be sacrificed at the altar of the cuts in public spending?
Only our politicians have the answer to that but the next few months promises to be an interesting and possibly, turbulent time in Welsh politics.
Comments
No, it means the rate of growth will be lower than it has been. That's not the same thing at all.
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