Severe cuts ahead, warns First Minister

Our budget is already £80 million lower in 2014 –15 than was in our indicative plans… and the Chancellor has given a very clear message that he intends to cut a further £1.5 billion from public sector budgets across the UK. We estimate that this could mean a further £55 million in spending cuts for Wales. We will need to prioritise funding to pay for those public services which we all rely on – health, education and job creation. All other areas of spending - and I mean all other areas - will need to looked at very carefully indeed.

The next UK spending review will further reduce the Welsh Government budget. We will not be able to protect local authority budgets as in recent years. So the financial reductions experienced by local government in England signal the future reality for Wales. Authorities need immediate and radical short-term financial and service planning so as to align public services with the lower level of resources which wil be available in the future.

The legislative programme continues to deliver on our commitment to reduce the deficit left to us by the last Labour government and to rejuvenate the economy through sustainable private sector growth.