Skip to main content

NEW GOVERNMENT'S POLICIES - THE EFFECT ON WALES?

Some of the policies of the new Conservative-Liberal coalition government have been broadly outlined in the press today.

Whilst waiting for further details, a number of these could have a significant impact on Wales

THE ECONOMY

Substantial rise in income tax thresholds for lowest paid from April 2011 – as Wales has a higher proportion of lower paid workers than any other region of the UK, this will have a major effect on take-home pay with hopefully knock on effect for the economy.

Departmental spending review this autumn – will the Welsh budget be ‘protected’ from any reductions in expenditure?

EDUCATION

Investment to reduce class sizes for children from poorer backgrounds – whilst this will be an Assembly decision on implementation, there will be pressure on the Labour-Plaid coalition to use the additional funding passed down for this purpose

New independent schools in state sector - "free schools" - to be set up – unlikely that the Labour-Plaid coalition will follow this lead but given the pressures to establish Welsh language schools across Wales, this could be a popular vote winner if included in the next manifesto for the Conservatives and/or Liberal Democrats in 2011

POLITICAL REFORM

Referendum of devolution of further powers to Welsh Assembly – this will silence those critics who have believed that a Conservative led administration would never do this

Cut in number of MPs and equal size constituencies – this will probably reduce the number of Welsh MPs to 30 if implemented by the next election, especially given the likely further transfer of powers to Wales

Review of Scottish MPs voting on England-only legislation – I assume this will apply to Welsh MPs as well in areas of devolved responsibility.

HEALTH

NHS spending to rise in real terms every year of the Parliament – as 40 per cent of WAG’s budget goes on health, this will mean an increase of around £190 million in April 2011 in this area of the Welsh budget

ENVIRONMENT

New nuclear power plants (Lib Dems able to abstain on issue) – Good news for Anglesey if this development is passed (and Labour unlikely to vote against this)

High-speed rail network to be built – the timing of the link to Cardiff could be accelerated under this option

Increased target for share of energy from renewable sources – Wales could be at the forefront of this development if WAG manages to get the business department to focus some of these developments in Wales.

All in all, there is potentially some good news for Wales in this initial list of policies but the devil, as they say, is in the detail, so more comment soon.

Comments

Anonymous said…
What role will you be playing?
Anonymous said…
VATs up then,bloody good that will do business
Anonymous said…
Brown's out - that will do business a lot of bloody good
Jeff Jones said…
Dylan read very carefully the agreement on pupil premium. It will cost just over £2 billion. It will not come from the schools budget but will be paid for by cuts elsewhere. If those cuts are in the education department budget then education spending will not increase and there will therefore be no Barnett consequentials. You also seem to assume that education which is a large part of any local authority budget will be protected from the effects of any cuts in public expenditure. The heads in my local authority have been warned to expect cuts of 3% in their budget for next year. The only way that the Assembly can stop this happening will be to ring fence education spending. The Tory controlled Vale of Galmorgan council aready spends £930,000 less on education than the Assembly says it should do under the settlement.Read the authority's budget for this year. They had no choice if they wanted to provide other services. If that money is now refenced it will obviously mean greater cuts in other areas which are already under severe pressure. With all these announcements I'm afraid it pays to read the small print and wait to see what happens in practice.
Jeff - will do. As I said, I will hopefully have more time later this weekend to read everything in more detail.
Jeff Jones said…
Dylan, Just started to read the Macarthy report on public expenditure reduction in Ireland. I never realised that the Irish Government has closed down the Community, Rural and Gaeltacht Affairs department and the Arts, Sport and Tourism Department. The fuctions of these departments have now been distributed amongst other government departments. If Ireland can do it then why not Wales. Why we have a separate Ministry of Agriculture has always been a mystery to me. As for Heritage the department was only created during the Labour/Liberal Democrat coalition to give the Lib Dems another cabinet post. It wasn't even given a proper budget. The cuts are now with us and the 3% revenue and 10% capital approach being adopted by the Assembly together with ring fencing some areas is in my opinion a mistake.
Jeff - it is sitting on my desk as well. However, having had a glance through it, it is a sobering but realistic appraisal by the Irish government of how to bring down their deficit.

Whether it applies to the UK or Wales is another matter altogether.

These figures of £300 million of cuts bandied about by Plaid simply don't take into account that there is no guarantee that cuts will be proportionate across all departments.

It also fails to consider that, in Wales, health accounts for 40 per cent of the Assembly's budget. Rightly or wrongly, that will be protected and increased in real terms (around £200 million up next year).

Even if Plaid is correct about the level of cuts, that amounts to a saving of £1.50 in every £100 that WAG spends.

Can WAG do that? I know what your answer will be.
Anonymous said…
Nothing should b eoff the agenda
There could be great savings in health if the layers of managers and admin were cut.
Education could benefit from the proposals to allow parents and communities to run schools ,why not give it a try. Its already working well in some parts of England.
Business support delivery needs to be streamlined and re vamped to allow the whole product line involved in various business sectors to grow.
There are a number of initatives that cost monet for neglible out comes or outputs, hit them on the head and invest the money on what clients are asking for and in preventative interventions.
Big one stop the money being poured into ministers mates schemes.
Unknown said…
EARN GLOBAL MONEY shows you different earning programs from all over the globe and help people to earn money from different earning program owned by different organizations.for more dedails visit
www.earnglobalmoney.info

Popular posts from this blog

THE CRACHACH

Unlike me, do you consider yourself part of 'the establishment' here in Wales?  As thousands gather for the Eisteddfod in Mold this morning, they will, according to some social commentators, not be participating in the greatest cultural festivals of Europe. Instead, they will merely be bit-part players in one of the annual gatherings of the great and good of Wales.  Unkindly, this set of the movers and shakers in Welsh society is known as 'the crachach' , and constitute a social class all of their own, dominating the educational, cultural and media sectors of Wales and allegedly looking down upon any outsider with new ideas, reinforcing mediocrity and failing to see beyond the limits of their own narrow experience.  They are said to live in a comfort zone that awaits the expected invitation to the next glass of chilled chardonnay and canapés, forgetting that due to their lack of leadership and drive, Wales remains firmly rooted to the bottom of the UK prosperity league ...

THE IMPORTANCE OF THE CREATIVE CLASSES

One of my favourite academic books of the last two decades must be the “Rise of the Creative Classes” by Professor Richard Florida.  This was one of the first detailed studies of the growing group of individuals who use their creativity and mental labour to earn a living and not only included those in arts and entertainment, but also people working in science and technology as well as knowledge-based professions such as healthcare, law, business, and finance.  Fast forward to 2022 and Professor Florida has written an updated report on the creative classes although he and his team now identify a different type of individual who is taking full advantage of the growth in digital platforms, social media, and online marketplaces.  Such ‘creators’ are defined as those who use digital technology to make and publish unique creative content, whether in the form of video, film, art, music, design, text, games, or any other media that audiences can access and respond to.  They ...

GLOBAL ENTREPRENEURSHIP MONITOR WALES 2022

How entrepreneurial is Wales? That is the question that the latest Global Entrepreneurship Monitor (GEM) attempts to answer in its latest report which investigates those involved in early-stage entrepreneurship i.e. starting and managing a new business.  This year’s results show that the rate of total early-stage entrepreneurship (TEA) in Wales in 2021 was 10.3% as compared to 11.5% for the UK. This is significantly higher than the previous year (6.5%) and means that around 192,000 adults aged between 18 and 64 are involved in entrepreneurial activity in Wales.  Nearly three quarters are in the very early stages of starting a business and the rest involved in managing a new business aged between 4 and 42 months old.  This is an important finding as not only is the overall rate of entrepreneurial activity in Wales increasing but this is largely accounted for by those starting a business. In this respect, it is critical that the right support mechanisms are in place to ensu...