Labour 20,000 homes pledge may now include renovations

Soaring costs mean some old homes might be renovated instead of only building new ones to hit Welsh Labour's social housing pledge, ministers have admitted.

Labour's manifesto promised "20,000 new low carbon social homes for rent".

But the finance minister said her budget had not kept up with rising prices and it could also affect plans to build schools in Wales.

Capital funding - which pays for building work - has been squeezed hard.

As a result, some things might take longer, Rebecca Evans told the Senedd's finance committee, the day after unveiling her budget.

Ms Evans told the government may not be "looking at all new homes now".

"We could be looking at homes which are brought up to standard or further empty homes brought into use, and so on."

A commitment to spend £1.5bn building schools would be honoured, but "inevitably we are not going to get so much for that money".

She added: "There will be parts of the budget where we are just simply not able to deliver as much as we originally intended."

The committee heard the cost of building schools had grown 15%.

"That means you're kind of getting 15% less school for you money this year, compared to last year," Welsh government Treasury director Andrew Jeffreys said.

Tuesday's budget confirmed that capital spending will stay flat next year and will not keep up with inflation.

That means the budget could really be worth 8% less in 2023-24 because of rising prices.

Climate Change Minister Julie James has previously acknowledged the state of the economy and public finances had left the 20,000 homes target "hanging by a thread".