EXTRA funding for the NHS and road repairs in Wales has been announced in the Welsh Government's draft budget for the 2019-2020 financial year.

Finance secretary Mark Drakeford introduced the plans, calling it a "bread and butter budget", in the Assembly this afternoon.

Among the announcements are an extra £550 million for health and social care, £15 million for schools, and £12.5 million to tackle child poverty.

But budgets for local authorities and public services will be cut by £20 million – although the Welsh Government has said this cut was initially predicted to have been more than twice as large.

Other announcements in the draft budget include £60 million over the next three years to repair roads, £25 million to create seven ‘strategic hubs’ across the south Wales Valleys and £7 million for the Valleys Regional Park, as well as £15 million over the next two years to increase recycling rates.

This is also the first budget to include the Welsh Government's powers to vary income tax. The Welsh Government has previously said it would not increase rates before the next Assembly Election in 2021, and this afternoon Mr Drakeford said rates would stay the same in April.

The budget also includes proposals to borrow £250 million next year, as well as another £250 million the year after that.

Introducing the budget, Mr Drakeford said: “Never has the need for the UK Government to abandon the failed polices of austerity been more urgent as the darkening shadow of Brexit looms over this draft budget.

“The chief economist’s analysis also published today shows that Brexit already costing every person in Wales and the UK up to £400. So for every household this means a loss of up to £800.

“This Welsh Government’s unremitting efforts to protect frontline services are carried out against those headwinds and those of shrinking budgets and escalating demand.”

He added: “The Welsh Government has done – and will continue to do – everything it can to protect frontline services from the worst impacts of austerity. And this draft budget is no exception.

“This has been my most difficult budget to date. With less money, more demand and inflation growing we have worked hard to squeeze every penny we can for those services that matter the most to people.”

Funding allocations for each area: 

Health and social services

  • 2019/20: £8.35 billion
  • 2018/19: £7.80 billion
  • UP £550 million (7.07 per cent - real-terms: 5.4 per cent)

Local government

  • 2019/20: £5.39 billion
  • 2018/19: £5.41 billion
  • DOWN £20 million (0.28 per cent - real terms: 1.8 per cent)

Economy and transport

  • 2019/20: £1.31 billion
  • 2018/19: £1.15 billion
  • UP £160 million (13.91 per cent - real terms: 12.2 per cent)

Education

  • 2019/20: £2.57 billion
  • 2018/19: £2.41 billion
  • UP £160 million (6.25 per cent - real terms: 4.6 per cent)

Energy, planning and rural affairs

  • 2019/20: £367 million
  • 2018/19: £354 million
  • UP £13 million (3.62 per cent - real terms: two per cent)

Central services and administration

  • 2019/20: £318 million
  • 2018/19: £324 million
  • DOWN £6 million (1.91 per cent - real terms: 3.4 per cent)

TOTAL

  • 2019/20: £18.3 billion
  • 2018/19: £17.4 billion
  • UP £900 million (5.17 per cent - real terms: 3.57 per cent)

Some of the other announcements included in the budget:

  • Independent schools and private hospitals to no longer be exempt from business tax, bringing them in line with their public sector counterparts.
  • Care leavers to be exempt from council tax until they are 25.
  • £12.5 million more to tackle child poverty.
  • £60 million for road improvements across Wales over the next three years.
  • An extra £41 million to support improvements in the NHS and buy new ambulances.
  • An extra £35 million for the Social Housing Grant.
  • £30 million extra funding for schools.
  • £10 million for the Tech Valleys programme.

Mr Drakeford also announced rates of Landfill Disposals Tax will increase in line with inflation, but Land Transaction Tax - Wales' equivalent of Stamp Duty - would remain unchanged unless chancellor Philip Hammond changes UK rates in his autumn budget.

Concluding, he said: “As we move through these uncertain times and as the financial difficulties deepen, this government remains committed to doing everything it can to help our public services meet the very real challenges they face today.

“This budget uses every source available to us to build a better Wales."

More details of the budget will be revealed in the coming weeks, with funding allocations to each individual local authority to be revealed next week.