Tuesday, November 29, 2011

Bleak news made worse by an intransigent Welsh Government

Chancellor George Osborne’s autumn statement today was grim indeed, the UK economy is barely growing and public sector jobs losses are going to be around 300,000 more than the Office for Budget Responsibility (OBR) predicted in the UK Coalitions budget. Add to that the global outlook is deteriorating and apart from a few baubles like the broadband money for Cardiff and about £300 million in Barnett consequential Wales has fared pretty badly.

The Chancellor did talk about a possible deal over the Severn Bridge tolls and a throw away line about M4 congestion but nothing concrete, as ever the devil is in the detail but at least both Government are talking about it, so lets hope something comes of it.

What this means for Wales, well outwardly the Labour Welsh Government will rail against the public sector wage cuts and the introduction of regional pay awards and feign concern at the impact of the cuts to tax credits that will hit Welsh families hard, but they will be pleased that the Tories and Lib Dems haven’t relented from the tough deficit reduction approach which will distract from their own ideologically driven action of half baked measures for the Welsh economy and their intransigence over growing the private sector to help cushion the blow from the public sector fall out.

In light of the statement the deal on the budget last week between Labour and the Lib Dems looks pretty irrlelevant, the Welsh government’s budget is almost unchanged and the economic stimulus (listed below) will do little to create jobs or give families and business hope that things will get better. The £216 million extra for capital spending is welcome but is more than likely to be wasted on Ministerial pet projects .

Carwyn and Edwina’s stimulus package comprises of the following

Young Recruits Programme – this is an extension of the existing scheme to provide financial support to eligible employers who can offer a high quality apprenticeship programme. We have allocated £0.65m in 2011-12 and £4.23m in 2012-13. This will fund an additional 800 apprenticeships in 2011-12 and a further 1000 apprenticeships in 2012-13.

Skills Growth Wales – this programme builds on the success of ProAct, providing support to companies that plan to expand their workforce and require financial assistance to make this possible. It complements Jobs Growth Wales. We have allocated an additional £3m for 2012-13 which will help assist 1,200 people.

Capital Investment in Schools – this provides support to local authority and Further Education Institutions’ capital maintenance programmes, pending long-term capital investment via the 21st Century Schools Programme. We have allocated an additional £9.26m in 2011-12 and this investment will be pan Wales.

Ely Mill Housing Project – the Welsh Government will invest £5m in 2011-12 and a further £1m in 2012-13 to assist the remediation work on the 50 acre site required to allow a broad partnership to deliver a mix of affordable and market housing over the next four to five years. The project will create up to 200 jobs per annum, starting in the second half of 2012.

Arbed – additional investment of £3m will expand the projects offered through the Community Energy Saving Programme in 2011-12. This will deliver whole-house, area-based improvements in the energy performance of homes in the most deprived communities throughout Wales.

Social Housing – this project will deliver an additional 130 affordable homes pan-Wales. It will lever in private finance, and we have allocated £9.26m in 2011-12.

Enterprise Zones - £3.5m investment in 2011-12 will support road enhancements required to secure the right platform for growth in the private sector. It will deliver construction jobs for the specific project as well as facilitating further jobs through the Enterprise Zone once it becomes operational.


You can bet Alex Salmond, Peter Robinson and Martin McGuinness will be fighting any changes to Scotland and Northern Ireland budgets tooth and nail, while Carwyn and his Ministers have already shown they are more interested in scoring points against the ‘baby eaters and their little helpers’ in London instead of as they promised in May's elections standing up for Wales. It makes you wonder if the electorate will ever learn to stop trusting Labour unquestioningly?Any source

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