Bethan Jenkins AC/AM Blog

WELSH Government Business Minister Jane Hutt has this afternoon made a statement on in-year spending.

The new Westminster Government recently gave the administration in Cardiff a Hobson’s choice of a decision - make cuts both this year and next, or make double cuts next year. Ms Hutt announced that the Welsh Government has decided to spread the cuts over two years.

No doubt the opposition will argue that during the election, Plaid said that cuts should not be made immediately and that this decision goes against that. However, the reality is that we argued against the Westminster Government imposing any immediate cuts on Wales, and asked instead any cuts should happen gradually over a number of years.

Plaid based its arguments against immediate cuts to the Welsh Government on the first Holtham report, which recommended that as Wales already loses out on £300m a year, the country should be spared any further cuts until a fair funding formula is in place.

However, the Westminster Government has imposed immediate cuts on Wales even though, prior to the election, Welsh Tory leader Nick Bourne said that his party would not. The only choice afforded to the Welsh Government was a stark one - betweenwhether those cuts should be spread over two years, or double cuts next year. Double cuts would mean a double blow for Wales next year.

Spreading the cuts over the two years is the most sustainable way forward possible under the circumstances. But what should have happened is that the Government in Westminster should have begun its cuts programme later on, once the economy was in a stronger position and more able to manage the savings. Instead, we now face the spectre of a double-dip recession in Wales.