SCHOOLS and hospitals in Wales are set to benefit from the £2.35 billion extra in the Chancellor's spending review.

Jane Davidson, minister for education, and Jane Hutt, minister for health, are both likely to be the main beneficiaries of the increased funding, which will come over a three-year period.

Gordon Brown has earmarked £11.8 billion for Wales - a £2.35 billion increase on the previous review in 1999.

Finance Minister Edwina Hart was due to outline more details of the settlement to the Assembly this afternoon. How much money will be allocated to each department of the Assembly will not be released until after the recess.

In England, Mr Brown said, £50,000 will be allocated for new projects at each primary school and £160,000 for secondary schools.

Huw Edwards, MP for Monmouth, speaking as the Chancellor's official spokesman in Wales, said: "My own feeling is that the schools in Wales... will be looking to get the same thing."

He added: "It is down to all of us to keep up the pressure on ministers like Jane Davidson to make sure the money is spent correctly, and schools in Wales get the same as their English counterparts."

Plaid Cymru feared the amount given in funding for Wales to match the Objective One funding from Europe, designed to regenerate areas such as the Gwent Valleys, would not be enough.

Phil Williams, opposition economic development spokesman at the National Assembly, said: "We will be forced to dig into areas of our core budget if we do not get sufficient money. That will mean less for schools and healthcare."

But First Minister Rhodri Morgan said of the review: "The partnership of the Assembly Government, the secretary of state and the Treasury has delivered. As regards European Structural Funds, the Treasury has agreed to continue the settlement achieved in 2000. "This settlement of £164 million per annum for three years will provide us with the £492 million of extra public expenditure to fund our Objective One programme."

Welsh Secretary Paul Murphy said: "This represents a boost to public services, made possible by our successful handling of the economy and public finances. It is now for the National Assembly to translate this into the best possible public services."