Welsh Government facing £900 million shortfall in its finances

First Minister Mark Drakeford says his cabinet will meet throughout the summer recess to look at how it will respond to the financial problems.

He said that the Welsh Government was facing its toughest financial situation since devolution, with significant financial pressures facing its budget 2023-24.

Ministers in the Labour-run government are being asked to find cuts in Welsh public services.

Montgomeryshire's Member of the Senedd, Russell George, said ideology and vanity projects including the default, 20mph speed limits were contributing to the problems.

The First Minister said his government's priorities will be to protect "frontline public services" while "targeting support towards those at greatest need".

He blamed the budgetary constraints on record levels of inflation and what he called the "mismanagement of the UK economy and public finances by successive UK governments".

Mr George said: “Only back in March, the Labour Government and their co-operation agreement partners in Plaid Cymru sent back £150m to the UK treasury that they failed to spend. Now they’re saying they don’t have enough money.

“As part of the budget preparations, Welsh Conservatives put forward a clear plan to make sure the Labour government focuses on the people's priorities, sorting the Welsh NHS waiting lists, ending the housing crisis and giving our young people the best start in life.

"Mark Drakeford's call is too little, too late. In 2019, the independent auditor general said that despite the Labour government having £1.20 for every £1 spent on the NHS and education on England, only £1.05 actually reaches the front line here.

"This is all whilst Labour continues to be the only government in the UK to have ever cut an NHS budget on two separate occasions."

He added: "All available funding must be spent on these essential areas, not top sliced for pet projects.”

“Labour continues to make their own problems worse by pushing their extreme ideology and vanity projects, such as costly default 20mph speed limits, and sending more politicians to Cardiff Bay. This money should be spent on our vital public services.”

The Welsh Government said it had drawn on all its available resources when drawing up the budget.

Despite this, its financial position after the UK Government's Budget in March was "up to £900m lower in real terms" than at the last spending review in 2021.

Mr Drakeford said he would provide a further update to members of the Senedd once ministers have considered areas where money could be saved.