By David Williams BBC Wales Political Editor

Wales appears to have gained considerable resources for public expenditure in Gordon Brown's latest Spending Review.

Wales will enjoy an annual increase of more than 5% per year in real terms, with the assembly budget forecast to increase to �11.8bn by 2005-06.

AMs have freedom to decide on spending

Whilst the allocation of funds to Wales is still a process of Westminster and Whitehall politics, the expenditure of public funds in Wales is largely controlled by the Welsh Assembly.

In fulfilling its policies, the Welsh Assembly Government (WAG) has considerable freedom to determine its own spending priorities and, perhaps more importantly, how it chooses to make these decisions accountable to the taxpayer.

An underlying principle of Gordon Brown's package was that any increases in spending had to go hand-in-hand with reform in delivery and accountability.

In England, under-performing schools and hospitals will be held to account and may find their management being taken over by more successful neighbours or even, the private sector.

In Wales no such sanctions are proposed.

Wales, it is claimed, is a small country with a integrated policy community where those responsible for policy implementation in the localities are in constant, close contact with the decision-makers at the centre.

Popular politician

This closeness, it is claimed, creates its own checks and balances and allows early warning of any impending difficulties.

This effectiveness of this internal accountability, however, has to be taken on trust.

Trust that the Welsh Assembly's mechanisms for policy review and executive scrutiny are effective and trust in the familiar political leadership of Rhodri Morgan and Welsh Labour.

Whilst Rhodri Morgan is undoubtedly the most popular politician in Wales, it is doubtful that the public hold new found devolution settlement and the still adolescent Welsh Assembly in such high regard.

There is a growing divergence in the range and scope public services being offered in Wales and Scotland with those available in England.

In education in Wales, for example, WAG has rejected the government practice in England, to inject monies direct into schools allowing individual heads to make the spending decisions, in favour of the traditional funding of local education authorities.

Jane Davidson: Denounced specialist schools

Education Minister Jane Davidson has already denounced the new policy of developing specialist and faith schools as inappropriate for Wales, whilst re-affirming her commitment to the traditional comprehensive principle, derided elsewhere as 'bog standard'.

Gordon Brown's spending review is last opportunity for the government to significantly impact upon the quality of public services before the next general election in 2005 or 2006.

Such is the time lag, from allocation of funds to enjoyment of resulting benefits, that these decisions are being portrayed as Labour's last chance to improved public services and convince the electorate of their competence.

For Wales, and Rhodri Morgan however, the time scale is much more limited as Wales will go to the polls next May.

In the time available, the money announced this week will only allow WAG to promise improved services, just as the assembly can only promise greater scrutiny.

Until the assembly assumes responsibility for its own cycle of policy and expenditure, Rhodri Morgan's appeal to the electorate will be largely dependent upon the renewed trust and confidence of the people of Wales.