Autumn Statement: Extra £400m for Wales capital projects

Wales will get an extra £400m over five years to spend on capital projects, Chancellor Philip Hammond has said in his first Autumn Statement.

He also recommitted the government's support for investment deals for the Swansea Bay region and north Wales.

On the economy, Mr Hammond said that every UK nation and region had seen a record number of people in work.

Wales' Finance Secretary Mark Drakeford welcomed a "belated agreement" on extra money for investment.

• Live reaction: Autumn Statement

• David Cornock: Welsh angles, city deals and warm words

• What Philip Hammond's words mean for Wales

The extra cash for capital projects in Wales comes through the Barnett formula as a result of increased spending on transport in England.

Reacting on Twitter, Clwyd West Conservative MP David Jones said: "I trust they'll use it to improve roads in North Wales."

Other measures announced include:

• a freeze on fuel duty for the seventh year running

• an increase in the National Living Wage from £7.20 to £7.50

• An extra £2bn a year to be spend on research and development across the UK

• Investment in fibre broadband and 5G services

• Personal tax allowance being increased to £12,500

• £3m from bank fines to be spend on good causes in Wales, including £1m for the Wales Air Ambulance and £2m to relocate a museum of military medicine from Aldershot to Cardiff

Welsh Secretary Alun Cairns hailed the Autumn Statement as "good news" for Wales.

"Not only does it help build an economy that works for everyone across Wales and the rest of the UK, it provides a significant over-£400m uplift in the Welsh Government's capital budget," he said.

"This comes as a result of the Chancellor's decision to focus on infrastructure, and will allow the Welsh Government to make decisions that will help people across Wales.

"It is an Autumn Statement that contains measures that will help people all over Wales, making it easier for them to save for the future, giving people on the National Living Wage a pay rise and supporting the pioneering work of Wales' great universities by investing in research and innovation."

The Welsh Government's Finance Secretary Mark Drakeford tweeted: "We've always said infrastructure investment crucial for economic growth - a belated agreement from @hmtreasury #AutumnStatement."

But he added that he was "disappointed" the UK government did not "take the opportunity to end austerity & invest in our cash-strapped public services".

Later, in a statement, Mr Drakeford said: "Although today's announcement doesn't go as far as we had hoped, this extra investment goes some way to restoring the cuts we have seen to our capital budget over recent years."

Flood defences and high street regeneration were the sort of projects which could benefit from the extra funding, he said.

Mr Drakeford added that on the matter of revenue (day-to-day) funding, just under £36m more money over four years was "negligible" - the Welsh Government currently spends around £15bn a year.

As for support for the proposed Swansea Bay region city deal and a north Wales growth deal, Mr Drakeford said the arguments about their importance were "well-rehearsed".

"It is important the UK Government now moves forward with these important deals to fully unlock their potential," he said.

Plaid Cymru's Treasury spokesman, Jonathan Edwards MP, said: "This statement confirms that the so-called long-term economic plan is really just a short-term economic scramble.

"What we need is a substantial programme of infrastructure investment across the British State that is aimed at re-balancing the UK economy."

UKIP AM Mark Reckless said the statement showed no evidence that the vote for Brexit was bad for Britain, saying: "Despite the fearsome predictions of Remain supporters, the overall prognosis for the economy is good, as we knew it would be."

But he called for an end to "grand projects" such as the HS2 high speed rail line, in favour of "shovel-ready" projects such as electrification of the south Wales valley lines.

The Welsh Liberal Democrat leader, Ceredigion MP Mark Williams, said the Autumn Statement "falls far short of delivering for Wales".

"The omission of the Swansea Bay Tidal Lagoon is a telling sign of this Government's flailing commitment to our environment," he said.

UK ministers have said they will "decide how to proceed" on tidal energy after reading an independent review of the idea, due to report by the end of the year.

Money earmarked for HS2 would be better spent on other rail projects, Plaid Cymru and UKIP say

Responding for trade unions, Wales TUC General Secretary Martin Mansfield said: "Today is a let down for Wales.

"The UK government has missed another opportunity to commit to large scale investment for Wales which we so badly need as workers face the uncertainty of Brexit.

"On top of this, further predicted falls in real terms pay will only worsen finances for families who are still waiting for their wages to recover."

Meanwhile the Wales Air Ambulance Charity has welcomed its £1m allocation from bank fines.

Chief executive Angela Hughes said: "It's the charity's vision to become a 24-hour operation and this donation from the LIBOR fund takes us a step closer to reaching that goal."