Mr Brown presented his fourth spending review to the Commons

As part of Mr Brown's spending review on Monday, the rise includes �555m intended for Objective One projects which aim to improve the economies of some of Wales' poorest areas.

Mr Brown also announced that more than 100,000 civil service jobs would go across the UK.

Unions estimate 6,000 of those will be in Wales but this is disputed by the Wales Office.

Welsh Secretary Peter Hain said the extra government funding unveiled for public services was an "exceptional result" for Wales.

The assembly's budget will have almost doubled in just over eight years from just over �7bn in 1999, he added.

We estimate that 6,000 jobs will be lost in Wales with serious consequences for the assembly's economic strategy Jeff Evans,

"This means that Wales will get an average real terms increase on top of inflation of over 4% a year each and every year from now up until 2007-08," he said.

The chancellor also outlined plans to axe more than 104,000 civil service jobs across the UK - 84,150 jobs in England and a further 20,000 in Scotland, Wales and Northern Ireland.

This money will go towards extra spending on health, education, defence, housing and overseas aid, he said.

But the unions said the huge job cuts spelt "carnage" for public services and warned of industrial action.

The Public and Commercial Services Union (PCS) said job losses will have a greater impact in Wales than in other parts of the UK.

Minister Sue Essex said the chancellor had looked after Wales 'very well'

Senior national officer for Wales Jeff Evans, said: "The civil service is a major employer in Wales and a mainstay of the Welsh economy.

"We estimate that 6,000 jobs will be lost in Wales with serious consequences for the assembly's economic strategy."

Welsh Liberal Democrat leader Lembit Opik MP said he was surprised that Mr Brown had made the announcement about civil service job cuts in Wales.

"It's actually a question of devolution. Gordon Brown should not be making massive announcements in terms of employment and releasing people from the civil service." said the MP.