Welsh Assembly Government response to ConDem spending review

Today’s announcement is a hammer blow for the people of Wales, the worst since devolution and the lowest settlement of all the Devolved Nations.

Our Budget next year will be almost £900m less than this year and comes on top of the savage Budget in June, representing the deepest public spending cuts since World War 2.

The Welsh Cabinet is meeting early tomorrow morning to discuss the impact of the settlement. The Assembly Government has always said that it will play its role in reducing the UK budget deficit.  But the cuts announced today are too fast and too deep.  They will endanger the fragile economic recovery and threaten devastating and long-term consequences for the most vulnerable people in our society. They will undoubtedly hit Wales harder than other parts of the UK because we are already underfunded, as recently demonstrated by the independent Holtham Commission.

The reductions for the Assembly Government’s Budget fully vindicate the prudent approach to planning assumptions we have adopted since the Spring. Although the cuts are towards the lower end of the possible outcomes for revenue expenditure, the capital cuts are as grim as predicted. Cabinet now has the opportunity to consider the implications for our Budget, which will be laid on 17 November.

These cuts come with no clarity over the decision to proceed with the electrification of the Swansea to London railway, the proposed closure of the passport office in Newport and the unprecedented £18bn cuts in welfare payments that will affect the most vulnerable people in our society.

Against this background, the Labour-led Welsh Assembly Government will continue to take a distinctive Welsh approach to safeguard essential services in Wales. We have a duty to promote fairness and equality in the way we allocate resources which will be best for the economy, as well as the social fabric of Wales. That is why we are committed to protecting investment in schools, skills and healthcare, and committed to maintaining universal entitlements – including the successful concessionary fares scheme, free prescriptions, free swimming and free breakfasts and milk for primary school children.

ConDem coalition urged to scale back savage spending cuts

The Labour-led Welsh Assembly Government has joined with the other two devolved governments to urge the ConDem UK Government to scale back its plans for savage spending cuts in the Comprehensive Spending Review on 20 October.

The joint declaration has been signed by First Ministers for Wales, Scotland and Northern Ireland as well as Deputy First Ministers and was sent to the Chancellor earlier today.

Welsh Labour’s First Minister, Carwyn Jones said: “We have taken this unprecedented step because we believe the scale and speed of cuts we have been led to expect will have devastating consequences for the most vulnerable people in our devolved nations and the impact will be felt for generations to come.  Our Joint Declaration shows the strength of feeling within the devolved Governments which represent nearly 10 million people or one sixth of the UK’s population.”

Smart card launched in Cardiff

 A new travel card was launched today which is set to transform public transport in Wales’ capital. 

The Iff Card - launched by Cardiff Bus – utilises new technology and aims to encourage bus use around the city centre by making travel easier. 

The card is linked to the Sustainable Travel City scheme, which is funded by the Labour-led Welsh Assembly Government, and aims to help the Welsh capital to become a Sustainable Travel City by encouraging bus use around the city centre.

Iff – which is a smart card similar to those in use by travel companies nationwide – will be unique to each user.  It can be pre-loaded with credit, signalling an end to paying by change for each journey and can also be used as a season ticket.  It also allows customers to stop their card and retrieve their current balance if they lose it

In launching the new card, Cardiff Bus will be the first UK bus company to allow users of its Iff Card to go up to £3 into debit – the equivalent of two single journeys in the capital.  Cardiff Bus is also planning to extend its communication with customers – as championed through its use of Twitter and Facebook – by sending service updates to passengers via text or email during spells of traffic congestion or bad weather.

Cardiff protesters call on Nick Clegg to rethink public sector cuts

The Deputy Prime Minister and leader of the Liberal Democrats, Nick Clegg, visited Cardiff yesterday, meeting First Minster Carwyn Jones and later attending a question and answerer session with students held at City Hall.

He was greeted by protesters angry at the coalitions governments savage and disastrous spending cuts. 

 Many local activists joined the demonstration. Jenny Rathbone, a spokesperson for Cardiff Central Labour Party, said:

"We want to make it clear people are unhappy about the cuts. What people don't realise what's about to happen – they think the cuts won't affect them. It could be more than 25% cut to the local government and those are the services which will seriously impact on the vulnerable – who had nothing to do with the bankers' bonanza."

"It's really important that Nick Clegg living in his bubble in Downing Street has some idea of what concerns that are out there.

            "We have never seen cuts on this scale to the welfare state."

Ed Miliband is elected new leader of the Labour Party



The new Labour leader, Ed Miliband addresses party members after his victory in Manchester.



Good news for Welsh Post Offices

A total of 41 Post Offices in Wales received a welcome funding boost today as the Labour-led Welsh Assembly Government announced the latest round of grants from its Post Office Diversification Fund.

The Post Offices will share over £725,000 to expand the range of services they offer or upgrade their premises. Grants can be used to provide modern services which customers might not expect to see at the local post office, such as an automated cash machine or a cyber café, as well as more typical services such as a passport photo booth. The funding can also be used for upgrades to the premises and staff training to offer a greater range of business products.

Around 140 Post Offices throughout Wales have already benefited from the fund, creating 112 jobs. This latest funding round will help a further 41 Post Offices and create 18 full time jobs at Post Offices across the country.

Cardiff Bus short journey fares have risen by 186%

Some bus fares in Cardiff have almost trebled in just seven years. Since 2003, fares for short journeys have risen by up to 186%, according to Cardiff council’s evidence to a Competition Commission inquiry. Job Centre Plus told the council’s researchers that “the cost and the availability of transport affected the range of employment options open to young people."

Youngsters aged 16 to 19 mostly have lower incomes than older people, but have to pay the same adult fares.

A ‘Day to Go’ ticket, for a day’s unlimited travel on Cardiff Bus within the city, had cost £3 for several years.

Some multi-journey tickets were cheaper than in 2003 and many fares have increased significantly more than inflation. Shorter single-trip fares have been particularly affected, with one-zone and two-zone trips increasing by 58% and 186%, compared to 18% inflation over the period.