News / 2.6% growth announced for Wales

Revenue funding for Welsh health and social services will increase by almost £146m (a rise of 2.6%) to £5.8bn in 2010/11, after planned efficiencies and savings

of £91m have been taken into account, minister for finance and public service delivery Andrew Davies said.

Managers predicted another tough year, with even greater efficiencies needed.

Mr Davies’ draft Budget, announced in October, showed the pressure being placed on public spending by the recession. The health and social services revenue funding is £40m less than outlined in indicative plans published in December 2008.

The allocation includes £50m ring-fenced to support structural changes in the health service and meet increases in demand.

Capital allocations would be £43.5m less than outlined last year, reflecting NHS England’s capital reduction and the decision to bring forward capital expenditure from 2010/11 into earlier years.

Mr Davies later announced that two NHS projects would be funded by the Welsh Assembly government’s strategic capital investment fund – the £8.5m emergency care centre at Prince Charles Hospital and the £8m Children’s Hospital for Wales.

The funding is separate from departments’ existing capital budgets.