Welsh budget 'hammered by Tories' say Labour

The Shadow Welsh Secretary Owen Smith says the possible borrowing powers for the Welsh Government need to be seen in the context of cuts in capital spending imposed by the UK government.

The Welsh Budget has been hammered by the Tory-led government, in particular, the forty per-cent real-term cuts to the capital grant. The acknowledgement that borrowing is vital to kick-starting infrastructure projects and the economy is to be welcomed. Welsh Government has also impressed on the UK Government the importance of potential convergence as a result of the Barnett squeeze and we will be holding the Treasury to account on their admission that this has unfairly reduced the Welsh Budget in the past and has the potential to do so again in future years.**

– Shadow Welsh Secretary Owen Smith MP

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Funding deal announced

The UK and Welsh Governments say they've reached a deal to stop further cuts in Wales' share of public spending. They've also agreed in principle that the Welsh Government should have borrowing powers.