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Andrew Davies, Minister for Finance and Public Service Delivery said:
This settlement is in line with our expectations and follows an exceptional period of growth since 1999. By the year 2010-11 we will see an increase of £2 billion in additional spending power in Wales. It is however a very challenging settlement – particularly in the first year.
We needed a record investment in Welsh public services – which has seen a spending level per head in Wales some 14% higher than in England – to correct a previous long period of under-investment, and is delivering real and sustainable improvements for the people of Wales.
The figures show that Wales will receive an average real terms increase of 1.8 % compared with real terms increases of 1.5% for both Scotland and Northern Ireland.
Our challenge is to build on this substantial progress and continue to deliver noticeable improvements in Welsh public services, while spending is growing at a slower rate across the UK.
Our One Wales agreement clearly sets out the Assembly Government's priorities for the next four years. I am confident that we can meet the challenges ahead and deliver our ambitious One Wales programme within the level of resources announced this afternoon.
I will now consider the details of today's settlement and finalise some technical issues with HM Treasury. Over the coming weeks I will be putting forward our draft budget that will continue to deliver real and significant improvements for the people of Wales.
Our focus as a Government is to deliver outcomes which make Wales a better place in which to live and work. Efficiency, value for money and collaborative working across all of the public sector is key to enabling us to deliver these outcomes.
October 9, 2007
