Spending cuts will hit vulnerable, says finance minister

The health service is facing much bigger bills for medicines and energy

Vulnerable people will "inevitably" feel the impact of spending cuts, a minister has said, as she prepares to announce how the Welsh government will fill a black hole in its budget.

Finance Minister Rebecca Evans will make a statement on 17 October.

That will be two months after First Minister Mark Drakeford told his cabinet to find savings.

Rising costs in the NHS and fewer passengers on the trains were adding to pressure on the budget, Ms Evans said.

Opponents called on her to protect front-line services.

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Compared to what it expected two years ago, the Welsh government says its funding this year is worth £900m less because of soaring inflation.

In the Senedd, Ms Evans said the impact of inflation was "particularly acute" in public sector wages.

The cost of medicines had increased around 17% and the NHS also faced a bigger energy bill.

Fewer people were travelling on the railways after the pandemic than the government expected, she told MSs.

Government departments had carried out impact assessments before deciding where to "release money", she said.

"And then I need to undertake a real cross-government cumulative impact assessment to understand where the impacts will be felt the most," she added.

"Because, of course, when we are cutting public spending it is going to be the most vulnerable people who inevitably feel some of this, because they are the people who always will benefit most from public spending in any case."

Fewer passengers have been using trains since the Covid-19 pandemic

Plaid Cymru said the government has not provided enough information since Mr Drakeford announced savings were needed in August.

The party's Peredur Owen Griffiths said "people have been waiting a very long time and worrying about this for months".

"Can you set the record straight on this particular matter and rule out the need for in-year cuts to front-line public services?" he said.

All government departments have been told they need to contribute to savings, although the main source of government funding for local councils has been protected.

Conservative MS Altaf Hussain said councils were "tens of millions of pounds in the red long before your budget cuts bite".

"It's clear the axe will have to fall somewhere but we must make every effort to ensure it's not on the front-line services and an excuse to ramp up council tax bills," he said.

He asked whether it was time to consider merging councils - something the government has ruled out.