Minister Jane Hutt said:

“Setting our spending plans, against the backdrop of the most challenging financial times since devolution, has been a true test of the Assembly Government and by far our most important budget.

“The 2011/12 Budget will play a crucial role in protecting the vulnerable, supporting the fragile economic recovery and defending the educational entitlements of our young people.  It is the vehicle for protecting our public services in Wales – and, in the process, doing our utmost to support our economic renewal.

“Our approach and proposals have been endorsed by a wide range of partners.  This confirms that we have made the right choices and decisions for the people, communities and the economy of Wales.”

Changes during the scrutiny process since the Draft Budget was published in November have been kept to a minimum.

The most significant adjustment is the additional £57million for 2011/12 which has been made possible because the Assembly Government has now taken  all of the in-year revenue reductions imposed on us by the UK Government last June. 

This funding will help address the challenging cuts made to our capital budget for next year which faces a reduction of more than 25%.  The £57million will be used to fund a number of crucial projects across Wales.

Ms Hutt added:

“A year ago, we knew we had to make difficult choices and decisions but these proved to be even harder after the worst financial settlement imposed on us by the UK Government since devolution.   We have maintained throughout that the cuts are too deep, too soon and the latest figures showing a shrinking economy prove that our assessment is right. 

“Nevertheless, as a responsible Government we have produced a Budget which offers a resolved, resilient and responsible response to the challenge of a difficult settlement.”

Another key feature of the Final Budget is the plan to invest £5 million next year to support the innovative Adapt scheme - a career transition, single point of contact service to help public sector employees and employers get advice, help and training if they face redundancy. 

Protecting the most vulnerable in society is key to our spending plans – we will maximise the opportunities to meet the needs of people and communities most likely to be adversely affected in the years ahead. 

The Assembly Government has also assessed the equality impact of our decisions throughout the process and published a full Equality Impact Assessment document, which is available online.  This goes further than current legal requirements and Wales is leading the UK in this important work.

Looking to the future the Assembly Government’s focus has now shifted to delivery.

Ms Hutt said:

“We will continue to drive forward the efficiency and innovation agenda, working closely with our partners across the public sector, trade unions and beyond. 

“The Efficiency and Innovation Programme will continue to identify innovative approaches to delivering public services and more efficient ways of working.  To support this agenda, we published further information yesterday on the progress being made on savings that can be achieved.

“The real challenge starts here.  As a Government we all have a responsibility to work together to support the people, communities, economy and public services of Wales.  Our partners have shown their support and commitment to rise to the challenge.”