Tory MP denies cuts to Welsh budget calling it a 'very significant settlement'

The row between both governments over inflation and budget cuts has been ongoing for months. Credit: PA Images.

Welsh Government claims that inflation will eat up all the extra money announced on Thursday have been rejected.

The Chief Secretary to the Treasury, John Glen MP, said he did not accept that claim.

Officials at the Welsh Treasury calculate that rising costs mean the Welsh Government budget is effectively worth £1.5bn less than last year.

They said it wipes out the extra £1.2bn over two years announced by the Chancellor, Jeremy Hunt.

The Welsh Government is not obliged to spend the money on health or education but is likely to do so. Credit: PA Images.

  • "We've given them certainty over the next two years"

John Glen MP said he thinks the decisions that the Conservative government made on health and education "are plainly very significant against a very, very difficult backdrop and tough decisions elsewhere across government."

He thinks there is “a very significant settlement for the Welsh Government, that amplifies the advantages of the decisions we've taken in Whitehall."

Mr Glen said the extra money gives Welsh ministers certainty over the next two years.

  • What does the Welsh Government think of the chancellor's Budget?

The Welsh Finance Minister, Rebecca Evans said is is an "invoice for the UK Government’s failure to manage the economy over the last 12 years."

Ms Evans continued: “It provides pain today and pain tomorrow, with higher taxes and energy costs now and spending cuts to come.

"Ultimately, it leaves people paying more for less."

Rebecca Evans said today's budget will mean people are paying more for less. Credit: PA Images.

She added that Wales cannot afford deep and damaging austerity.

"I am relieved that the chancellor has at least partially responded to my calls for more funding for public services in the here and now.

“However, let me be clear that today’s statement doesn’t even come close to providing the funding needed to protect public service budgets against the immense challenges caused by record inflation.

The Welsh Government will unveil its budget next month.