George Osborne urged to rethink cuts by Jane Hutt

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Jane Hutt
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Jane Hutt said the Welsh government's capital budget had fallen by nearly a third in real terms

Chancellor George Osborne should think again about plans to announce further public spending cuts, Welsh Finance Minister Jane Hutt has said.

Writing to the chancellor before his spending review, external, she said investment was vital for a "balanced recovery".

Some UK government departments have been asked to plan for budget cuts of either a quarter or two-fifths by 2020.

Any reductions will be reflected in the Welsh government's budget, under a spending formula.

'Thriving'

Ms Hutt said the Welsh government's budget had already shrunk by 8% in real terms over the past five years.

She highlighted plans for a metro-style transport system in south east Wales, a tidal lagoon in Swansea Bay and a "city deal", unlocking major investment in Cardiff, as major funding priorities to boost economic growth.

Ms Hutt also urged George Osborne to give Welsh ministers "maximum" financial flexibility to invest in major infrastructure projects, but not at the expense of day-to-day funding for public services.

The UK government has said Wales has been "thriving" under its long-term plan and must contribute to the savings needed to make the UK's finances more secure.