1. ITV Report

Chancellor's statement: what will it mean for Wales?

Chancellor George Osborne Photo: PA

When the Chancellor delivers his Autumn Statement later, there'll be a number of direct and indirect consequences for Wales.

Drivers and businesses which rely on road transport will be hoping that George Osborne will either postpone or scrap a 3p rise in fuel duty which is due to come into force in January.

There's also the possibility that he could raise the amount people have to earn before paying tax. That figure is £7,4675 this year and is due to increase to £8,105 next year.

But while that would be good news for lower earners here in Wales, it's likely that people who rely on benefits will be told to expect a freeze in the amount they can expect to receive.

It's thought any such move would be part of Mr Osborne's response to lower-than-predicted growth figures.

But he's also due to announce an extra £5bn of spending on building new schools and transport projects, to be paid for by new savings imposed on every department.

Because of the way that Wales is funded, a portion of that money will be passed on to the Welsh Government to spend as it sees fit.

Welsh Finance Minister Jane Hutt has already written to the Chief Secretary to the Treasury, calling for spending to be increased on capital projects. She told Danny Alexander that the Welsh Government has a series of projects ready to go if there's extra money forthcoming.

They include dualling of the A465 Heads of the Valleys road, improvements to the Conwy Tunnel on the A55, broadband, new school buildings and strengthening of flood defences.

The Welsh Government will also be watching carefully for details of how much money it will be given to set up a new council tax benefit scheme here.

Sources have criticised the Treasury for refusing to say how much funding there'll be and warning that the Assembly may have to be recalled because AMs must vote on the rules for the new schemes before Christmas if they're to be ready by the new financial year.

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