The Welsh government is facing its worst settlement since before the pandemic unless it gets a cash boost in Wednesday's budget, finance minister Elin Jones has warned.

She said the money for day-to-day spending next year in things like health and education was looking at a real-terms cut of 0.7%.

Llanelli's Labour MP Dame Nia Griffith urged the chancellor to relax restrictions on ministers in Cardiff borrowing for investment.

The UK government's budget has huge implications for Wales as extra spending in England could lead to more cash available to Cardiff ministers.

Mayors and regional leaders in England are expected to get extra funding for social and affordable housing and more flexibility and authority over investment decisions.

But it is unclear what that will mean for Wales.

Jones told Politics Wales: "This will be very possibly then the worst settlement that we've had since the period before Covid.

"It will mean, given the inflation in the system as well, that the NHS and other aspects of public services in Wales will face a very difficult and challenging year."

She wanted Welsh ministers to be given the same powers as the Scottish government in being able to access reserves to fund spending commitments.

Prime Minister Andy Burnham has expressed support for devolving powers and funding across the UK's nations and regions.

Jones has said a good start would be to free up some of the investment already pledged by the UK government for rail services in Wales.

She said: "There is a £14bn commitment to rail investment from the previous Labour Welsh government and the Labour UK government to deliver real meaningful investment in rail infrastructure in Wales.

"It is not a wishlist, it is what was promised from this UK government. All we are asking for is for that to start appearing in the spreadsheets."

Dame Nia defended her party's record in funding devolution since winning power in 2024, but said: "We need to look at that fiscal framework, so the ridiculous rules which make it more difficult for the Welsh government, for example, to borrow money and to carry money over from one financial year to another than for some local councils.

"We want to look at the way that it can be as flexible as possible for the Welsh government and obviously respecting the fact that they choose what they actually spend the money on."