The Welsh Liberal Democrats have launched their manifesto, unveiling promises to increase the powers of the Welsh assembly and reform the way Wales is allocated funding from the Treasury in London.

The Lib Dems would give the Welsh assembly the same powers as the Scottish parliament, including the ability to increase taxes, and would reform the Barnett formula, which allocates public funds to the UK's regions, to give Wales "a fairer slice of the cake".

The party would also increase spending on key public services such as health and education by £1.4 billion.

Student tuition fees would be abolished, the elderly would receive free personal care and there would be free eye and dental checks for all, the party pledges.

The Welsh Liberal Democrat deputy leader, Lembit Opik, said: "We also propose green action in every aspect of government because Liberal Democrats recognise that the environment cannot be pigeon-holed in one department."

The party's leader in Wales, Richard Livsey, claimed his party offered "a real chance for real change".

"William Hague's Tories would be a disaster. Plaid Cymru are an irrelevance at Westminster," he said.

Plaid Cymru has placed its emphasis on care for the elderly today, with a call for the government to follow the example of Scotland by implementing the Royal Commission's recommendations on long-term care for the elderly.

Simon Thomas said: "By refusing to follow the lead of Scotland, New Labour have turned their backs on some of the most vulnerable people in Wales and England."

Plaid argued that equality with Scotland was the only fair basis to proceed upon, and that Labour had created "artificial boundaries" between health and personal care.

In other campaigning, the Welsh Conservative Party has placed the focus on the waste of public money by Labour in Wales.

The party also drew attention to the proposed £47 million cost of the new Welsh assembly building.

The Conservative Party argues it is the only party to believe money should be ploughed into front line public services such as health and education.