1. ITV Report

Wales reacts to Budget ups and downs

George Osborne described it as a Budget 'for people who aspire to work hard and get on'. Photo: PA

The Chancellor has announced an extra £161m for the Welsh Government to spend on building projects.

George Osborne has also imposed some cuts on Wales in his Budget, which has been described by trade union leaders here as "disappointing" and "a missed opportunity".

The headlines announced in the Budget:

  • Personal tax allowance - the amount people can earn before paying income tax - will rise to £10,000 by next year
  • The fuel duty rise planned for September has now been scrapped
  • Duty on beer has also been cut by 1p
  • Corporation tax will be reduced by 1 percent, to 20 percent, by April 2015
  • Home-buyers will be given help, including interest-free loans
  • Public sector pay rises will be capped again at 1 percent for the next two years

110,000 families here in Wales are also eligible to benefit from the announcement of free childcare vouchers worth £1200 a year, per child.

Our Correspondent Joanna Simpson has been finding out how the contents of the Chancellor's red case will affect the Green family from Bargoed.

Businesses here will have welcomed the cut in corporation tax announced by the Chancellor today, according to the Institute of Directors in Wales.

Our Business Correspondent Carole Green has been looking at what impact the Budget will have on our companies.

The Welsh Government will get an extra £104m over the next two years from the Budget, according to the Wales Office.

  • Capital spending - the money for building projects - will rise by £161m
  • Revenue spending - the money for regular spending - will fall by £59m

The political reaction from Wales has been largely critical.

Jane Hutt, the Welsh Government's Finance Minister, said "we're very constrained and disappointed by this Budget."

Labour's Shadow Welsh Secretary Owen Smith says the Chancellor's budget gives to Wales with one hand and takes away with the other.

The Wales Office has defended the Budget as "as good as we could possibly have hoped for."

Baroness Randerson told our Political Editor Adrian Masters it was a reasonable deal, both in terms of the amount going to the Welsh Government and other measures affecting normal people directly.

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