As part of her attack on UK Government spending cuts, Finance Minister Jane Hutt has dismissed as 'not extra money' an increase of £161m in capital funding which was announced in the Chancellor's recent budget.
The £161m in additional capital spending announced by the UK Government is not extra money we can use to spend on our priorities – it’s being given to us with one hand, and taken back by the other. It also has strings attached. It can only be used for loans or equity investment – and a proportion will have to be repaid.
The Welsh Government is already doing all it can to boost the resources available for infrastructure investment to stimulate the economy, but we need the UK Government to play its part.
We want to see the Welsh economy returned to full strength. Last week’s Budget will not make that task any easier.
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