HERE WE GO...

So there we have it, the devil is in the detail, the Welsh budget has been cut in real terms by 11.4%, with capital spending, money to be invested in new roads, hospitals and schools, being cut by 41%. This works out at around £4.8 billion over the next four years.interestingly enough, the previous New Labour Government, planned, this time over three years to cut Wales' budget by £3 billion. The Con Dem government now also plan cuts of approximately £3 billion over next 3 years which works out at about the same. While the ConDem cuts are a heavy blow, so would the proposed New Labour cuts have been. One thing is true, both the former New Labour Government and the current ConDem Government have no interest in making sure that Wales has a fair funding formula.

The Welsh budget, this year, is some £1.4 billion less than it would have been if we had kept pace with spending increases in England under New Labour. It's also worth noting that Spending Review also announced a further £7 billion cut from the welfare budget, on top of £11 billion previously announced over the Summer. There is a significant degree of geographical unfairness (for want of a better phrase) in this Spending Review on a number of levels. Wales, amongst the devolved nations, is worst off, and is taking a bigger hit than Scotland and Northern Ireland. There are significant if not huge differences between Wales and the south-east of England.

The ConDems are carrying on with the Crossrail, a multi-billion pound infrastructure project in London, not to mention three major science projects all of which are located in the south-east of England, not to mention continued spending on museums, galleries and culture in London.These cuts are far too deep and far too fast, they threaten Wales’s economic recovery and could expose us to the risk of a ‘double-dip’ recession. I (and no doubt many other people would expect this from a Consevative Government, but, their super keen Lib Dem little helpers should really know better.

NOBBLED? - SURELY NOT?

News that the Com Dem Coalition Government has quietly shelved plans for an independent inquiry into the £25 billion-a-year energy industry which has been subject to lengthy and repeated criticisms surrounding accusations of profiteering on electricity and gas, should come as no surprise to even the most impartial observers of the consequences of a warm relationship between the political parties within the Westminster village (and without) and the energy supply companies.

Interestingly enough, for sometime before the last Westminster general election, the Conservatives and the Liberal Democrats made repeated criticisms (and much political capital) from New Labour for its failure to tackle prices charged by the Big Six suppliers. Both the opposition parties publicly and repeatedly demanded an inquiry by the Competition Commission. 

There was a hope that an inquiry into the nefarious activities of the energy supply cartel (sorry companies) might have had the power to reform the industry, encourage new entrants to break the hold of players such as British Gas and EDF on 99 per cent of the market and even possibly impose price caps. Yet, it appears that barely four months into the Coalition Government, there will be no inquiry has been called for and the Department of Energy and Climate Change confirmed on the 17th August that it has no plans to refer the industry to the Competition Commission.

Hmmm... perhaps there ought to be an inquiry into the dubious (and financial rewarding (in cash and kind) relationship between our political parties and the representatives of the energy supply companies who are keen to shower enough goodies around during Party conference season (and beyond) - perhaps not? 

PAYING FOR WHAT YOU GET?

The Lib Dems as part of the Con Dem coalition government have not just signed up to George Osbourne's savage public sector cost cutting exercise scheduled for October, they are going to have to sign up to helping to bail out their own party out of the financial hole they find themselves in. Some 20 Lib Dem staff have lost their jobs at Lib Dems HQ, the rank and file are facing a 15 per cent rise in their membership fees.

The emergency conference to approve the coalition deal with the Tories cost them the best part of £100,000. Now with potential Lib Dem support at the polls next year in Scotland (Parliamentary elections), Wales (National Assembly) and England (Local Government) looking to crash as a direct result of the coalition deal, not mention the cuts, and a potential electoral reform defeat / farce (take you pick) means that things may be starting to look grim for the Lib Dems.

What may make things more interesting is that the Lib Dem's may well be pretty skint - the Electoral Commission has revealed that the Lib Dems received £6.4 million but spent £6.6 million in the last Westminster election. As part of the Lib Dem austerity measures the party's membership fee is going to go up to £60 pounds. £60 pound to help fund potential electoral oblivion - that's value for money!

POLLING DAYS

It looks like we are all going to be in for a busy few months next year, trooping to and from (or not) to the polling booths - what with the possibility of a referendum on more powers for National Assembly in March, a referendum on electoral reform (AV = Alternative Vote) in May (the 5th) and elections to the Welsh Assembly in either May or June of 2011. One thing is becoming pretty clear that there is no strong voice for Wales in the Con Dem cabinet, let alone a stage whisper for Wales. 

With both the Tories and Lib Dems having strongly coming out against having the referendum - the one for more powers - on the same day as the National Assembly elections, because it might be very confusing to voters (how patronising can you get?) by having more than one election on one day. one wonders how eloquent and vociferous will be the protests from the Lib Dems and the Tories about the prospect of holding the referendum on changing the voting system on the same day as the National Assembly elections, after their Masters in London have publicly announced their decision - so much for consultations and clear channels of communication. Ironically at this rate they make Peter (the Pain) Hain look like a staunch and effective defender of Welsh (rather than Labour Party) interests. 

There is something else to think about, Vaughan Roderick, the BBC Welsh affairs editor, has pointed out that there may well be a fourth vote in 2011. With the UK Labour Party actively campaigning to defeat the proposed change in the voting system (despite the fact that such a change was offered by Gordon Brown (where is Gordon these days?) before the election and the promise was repeated in the Labour Manifesto). If old Labour gets the 'No' vote out for the AV referendum - then the Con Dem coalition government which is far from certain of winning the referendum to change the UK voting system, could fall apart, leading to a general election in June. Ouch! 

PM DAVE'S VISIT

I wonder if sometime during PM Dave (or are we back to David now?) Cameron's visit to Wales  we will get told that the Liberal Democrat / Conservative Government is going to commit to completing the electrification of the main south coast rail line from Swansea to Severn Tunnel (and on to London). Or will it be one of the first big  infrastructure projects to bite the bullet under 'Slasher' Osbourne's programme of cuts? If this is so, then it will show a fundamental difference between Ireland and the UK, where, despite the austerity package to fix the financial crisis work continues on the West Coast Rail Corridor  project.