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RMG disputed Park View Court had fallen into a state of disrepair and said service costs were audited, with any underspend returned.

Its assumption of an underspend of £2.9bn published in its Economic and Fiscal Outlook would "very likely have been dropped" and instead it would have made a "materially higher" forecast for spending this year.

It comes after a government report confirmed there had been a £358m underspend in the agricultural budget across last three years.

Both Defra and the Treasury declined to comment on any proposed cuts but the government has acknowledged there was a £358m underspend in the agricultural budget over the past three years.

In the recent budget cuts announced by Welsh government, there was an £11.5m underspend on the universal free school meal scheme.