Budget agreement but where's the beef?

Victory or capitulation? It's often a fine line in politics.

Anyone hoping to wake up tomorrow to a non-Labour government will be disappointed: the budget will go through this afternoon after Plaid struck a deal with the Labour administration.

Plaid will let the budget through in exchange for a promise of an extra £13.3 million for schools.

This, they claim, is "new money - meaning that no other budgets will be cut to provide the extra funds."

Hang on. New money? Where did that come from?

Rhodri Morgan said yesterday morning: "There's no more money beyond the £14.4 billion (initial budget) plus £9.3 million (that Gordon Brown made available)... It is a very very tight position to be in."

So who's right? Is it new money or not? These details - soon to be revealed I hope - will be key in determining whether Plaid and Labour emerge from this strengthened or looking desperate. After all, Labour want nothing more than to hang on to the last vestiges of power, and Plaid want nothing less than to be forced to work with the Tories.

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posted by Blamerbell @ 2:02 pm,


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