THE Liberal Democrats would increase Wales’ ability to borrow to fund projects to £1 billion, the party has announced.

In the last parliament, ministers granted early powers to Wales allowing it to borrow up to £500 million for infrastructure projects each year.

The Welsh Liberal Democrat General Election manifesto will include proposals to increase this limit from £500 million to around £1 billion.

This would ensure Wales has borrowing powers that are proportional with Scotland.

Roger Williams, deputy leader of the Welsh Liberal Democrats said: “By doubling the amount of money Wales can invest on infrastructure projects, the Welsh Liberal Democrats would be delivering a significant step in securing a stronger Welsh economy.

“Increased borrowing powers means that Wales would have greater scope to stimulate the economy with investment in significant capital expenditure projects.

"This is an announcement that would benefit all of Wales.

“This will allow Wales to catch up with the rest of the UK in terms of infrastructure and ensure that our nation is competitive in attracting jobs and investment.”

The party’s economic spokesman, Danny Alexander, said: “This increase in power would mean Wales would be able to invest in projects that could help build a fairer society, such a building schools and hospitals.”

A Conservative Party spokeswoman said: “The Conservatives have delivered record investment and a greater say over their own affairs for the people of Wales.

“In this Parliament we have driven through the St David’s Day Agreement – a landmark package of more powers for Wales, including the introduction of a ‘floor’ in the level of funding so that Wales always receives a fair share of money.

"We have also already given the Welsh government the power to borrow money to fund key upgrades to the road network and other infrastructure.

“This is real, constructive change for Wales, delivered by a Conservative government, not the chaos of unfunded promises offered by the Liberal Democrats in barely concealed desperation to hold onto their seats in Wales.”

Labour's candidate for Torfaen, Nick Thomas-Symonds, said: “It is completely hypocritical for the Lib Dems to talk about increasing the Welsh capital budget while their record in government has seen them impose colossal cuts on the Welsh Labour Government’s budget.

"Wales needs Labour governments at both ends of the M4, working together to invest in our economic future.”

Plaid Cymru’s AM for South Wales East Lindsay Whittle said: “It is a lovely thought but what you borrow you have to pay back.

"The Welsh Government does not have the tax raising powers we would like to have so I would be cautious borrowing such a massive amount. It’s lovely to be able to pick a figure out of the air.”

l Another election hustings will be held in Abergavenny for the Monmouth constituency tomorrow(Wed) at St Mary’s Priory Centre from 7pm.

Organised by Abergavenny Council of Churches, six candidates are expected to attend. They are: the Conservatives’ David Davies, Labour’s Ruth Jones, the Lib Dems’ Veronica German, Ukip’s Gareth Dunn, Plaid Cymru’s Jonathan T Clark and the Green Party’s Christopher Were.

The English Democrats’ Jenny Knight has been invited but it is unknown whether she will attend.