Lib Dem/Labour budget deal

Welsh Liberal Democrat leader Kirsty Williams reveals party has reached its second budget deal with the Welsh Government

  1. Adrian Masters

Welsh Lib Dems and Labour reach new budget deal

Welsh Liberal Democrats say they've reached a deal with the Welsh Government which will see more Lib Dem policies put into practice. Leader Kirsty Williams AM says her party's plan to guarantee mortgages for first time buyers of new-build homes will be implemented as a result of the deal. She said,

Difficulties in financial markets and banking sectors have made it difficult for people to buy their first home. Welsh Liberal Democrats believe this mortgage scheme will help first time buyers in Wales.

The decision to back Carwyn Jones' latest spending plans, follows a previous agreement which to support the budget back in November in return for extra spending on the poorest pupils. As part of that deal, there was a commitment to discuss what to do with £216m of extra Treasury money.

According to the party's Finance Spokesman, Peter Black, the first year's share of that money amounts to £38m and of that, 'about a third' will be directly attributed to Lib Dem projects. Future spending would be the subject of further talks. A Welsh Government source confirmed the deal, saying,

We have reached agreement on the Budget announcements that the Minister will make today. This is very encouraging.

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