Politics
Extra £1.5bn for public services as Welsh Government unveils spending plans
THE WELSH Government has unveiled its spending plans for next year with an additional £1.5bn allocated to public services, including an extra £610m for health and social care.
Mark Drakeford announced all government departments will receive increases in day-to-day revenue and longer-term capital funding, marking a departure from last year’s cuts.
Wales’ finance secretary described the £26bn draft budget as offering an opportunity to rebuild and reinvigorate public services after 14 difficult years.
He said: “This is a budget for a brighter future, delivering an extra £1.5bn for our public services and priorities, helping to put Wales firmly back on the path of growth….
“This is in stark contrast to the last couple of years when we have been forced to make some very difficult and painful decisions.”
The ex-First Minister added: “This is a good budget for Wales. But it will take time to reverse the damage inflicted on Wales over 14 years of neglect from previous UK administrations.”
The draft budget includes an extra £610m for health and social services, £186m to improve rail services, including the core valleys lines, and £81m to build more social housing for rent.
Councils will receive a 4.3% increase in the local government settlement.
The increases by department are as follows:
- Health: 3.8% revenue, 30% capital
- Housing and local government: 5.4% revenue, 11.2% capital
- Education: 4.9% revenue, 8.1% capital
- Transport: 12% revenue, 10.7% capital
- Climate change and rural affairs: 6.6% revenue, 31% capital
- Economy, energy and planning: 4.3% revenue, 59.1% capital
- Social justice: 4.7% revenue, 23% capital
- Central services and administration: 7.4% revenue, 47% capital
Welsh rates of income tax will remain unchanged, with taxpayers continuing to pay the same rates as in England and Northern Ireland.
However, the Welsh Government announced that higher residential rates of land transaction tax – Wales’ equivalent of stamp duty – will increase by 1%, raising an extra £7m.
The standard rate of landfill disposal tax will also rise to reduce waste and boost recycling.
The big question is how the Welsh Government will pass its budget, with parliamentary arithmetic in the Senedd on a knife-edge and Labour one seat short of a majority.
Eluned Morgan, who has warned Wales could lose out on £1bn if opposition parties do not support the spending plans, will need to cut a deal with at least one opposition member.
Previous budgets have been passed with the help of Plaid Cymru, Liberal Democrat and independent Senedd Members, with a deal with the Conservatives seeming unlikely.
Plaid Cymru backed the Welsh Government’s budget in recent years in return for 46 commitments but the cooperation deal between the two collapsed in October 2023.
The First Minister could also reach out to Jane Dodds, the Lib Dems’ leader in Wales and the party’s sole Senedd Member, or Rhys ab Owen, who sits as an independent.
Senedd Members need to agree a motion on Welsh rates of income tax (Writ), which are forecast to raise about £3.3bn in 2025/26, before the budget can be passed.
Writ defaults to zero if a motion cannot be passed, meaning basic, higher and additional rates would decrease by 10p in the £1 for Welsh taxpayers.
If the annual budget motion is not agreed by the start of the financial year in April, the budget of the Welsh Government would revert to 75% of the previous year’s.
This would also affect directly funded bodies such as the Senedd, Public Services Ombudsman, Wales Audit Office and the Electoral Commission.
If a motion is still not agreed by the end of July, the budget rises to 95%.
Mark Drakeford will lead a debate on the draft budget in the debating chamber or Siambr, which will be broadcast live on Senedd.TV from about 2.50pm today.
He will also appear before the Welsh Parliament’s finance committee on Thursday morning to face questions about the spending plans for the 12 months from April.
Senedd Members will then scrutinise the draft budget through December and January.
Committees will take evidence from witnesses including the Office for Budget Responsibility, Institute for Fiscal Studies, Wales Fiscal Analysis, Bevan Foundation and Citizens’ Advice.
Based on this evidence, committees will publish scrutiny reports by February 3.
A further debate on the draft budget will be held the following day, with the final budget set to be published on February 25 and a crunch vote to follow on March 4.
Navigating this year’s budget process will be a key test for Wales’ new First Minister, with the next Senedd election looming in less than 18 months in May 2026.
News
Housing plans for former Penally asylum seeker camp
THE EARLY stages of plans for a potential housing scheme at a Pembrokeshire military training camp, controversially used to house asylum seekers, have been submitted to the national park.
The camp, which has been in existence since 1860 as a military training facility, was prominent in the headlines between October 2020 and March 2021 when it became the controversial base for asylum seekers.
Amid protests from inside and outside its gates, the camp housed up to 250 asylum seekers at the height of its occupancy.
It came under fire from its residents and independent inspectors for its poor living conditions.
After the last of the asylum seekers departed, it was handed back to the MoD by the Home Office, who had previously repurposed it, the camp itself closed in late 2022, and was put up for sale the following year.
During the camp’s usage there were protests from both inside and outside the camp, with more than 200 people protesting at one stage against the plans and numerous arrests made.
The camp housed up to 250 men at any one time, and a 30-strong group of them took to the streets of Tenby in a march to show their unhappiness at what they said was their ‘prison-like’ environment.
At the time of that 2021 protest by the camp inhabitants, a spokesman for Stand Up to Racism West Wales said: “They have had enough of the poor food, bullying from security staff, cold huts, lack of medical care, blocked toilets, poor adherence to Covid regulations (some staff don’t bother to wear masks), lack of mental health support, but above all, being treated as prisoners rather than asylum seekers.
“Things must change.
“They need to be transferred to proper accommodation. Other camps in England are doing this.
“Why not Penally?”
Despite the-then Home Secretary Priti Patel maintaining that there had been consultation with ‘everybody’, a 2021 independent report stated that the Home Office did not consult in advance with local stakeholders – such as those who needed to set up healthcare for residents.
The inspectors were from the Independent Chief Inspector of Borders and Immigration (ICIBI) and Her Majesty’s Inspectorate of Prisons (HMIP).
Their report highlighted ‘filthy’ conditions in parts of the accommodation and residents feeling ‘depressed’, ‘hopeless’ and ‘trapped in poor conditions’.
An early stage ‘observations’ application, validated by Pembrokeshire Coast National Park planners, lists “Proposed residential redevelopment of the former Penally Training Camp,” the scheme listed as being received on January 7 and currently being processed.
The national park has been approached for further details about the scheme proposed.
News
UK Government acknowledges rail funding shortfall in Wales
THE UK GOVERNMENT has, for the first time, admitted that Wales has been underfunded in rail infrastructure. However, despite this significant acknowledgment, concrete financial commitments remain absent, raising concerns about the future of Wales’ rail network.
In a letter from Transport Minister Heidi Alexander and Secretary of State for Wales Jo Stevens, the Government admitted that railways in Wales have suffered from “low levels of enhancement spending” in recent years. The letter follows criticism of underinvestment compared to projects like HS2, which has excluded Wales from its benefits while consuming billions of public funds.
The correspondence recommended prioritising key initiatives, including new stations on the South Wales mainline and upgrades to the Borderlands line between Wrexham and Liverpool, as suggested by the North Wales and South-East Wales Transport Commissions and the Union Connectivity Review. However, it stopped short of detailing how much funding Wales can expect or whether spending levels will align with those in England.
First Minister: A ‘step forward’
First Minister Eluned Morgan called the admission a “massive step forward,” noting during a Radio Wales interview that this marked the first time in 14 years the UK Government has admitted to underfunding Wales’ railways. However, she cautioned that discussions are ongoing and described the Welsh Government’s “long list” of rail projects ready for potential funding.
Morgan reiterated her concerns over HS2, labelling its classification as a project benefiting both England and Wales a “fundamental injustice.” She argued that Wales should receive at least 5% of the HS2 budget—a consequential sum of around £4bn—none of which has yet materialised.
Plaid Cymru: ‘Labour failing to deliver’
Plaid Cymru criticised the First Minister’s optimism, accusing Labour of failing to secure the funding Wales is owed. Llyr Gruffydd MS argued that the letter fails to address the unfairness of HS2 or commit to rectifying the £4bn shortfall. He called for the full devolution of rail infrastructure to ensure Wales receives equitable investment.
Gruffydd said: “The First Minister must be reading a different letter. It does not acknowledge the unfairness of HS2 nor promise to right the wrong of the £4bn consequential owed to Wales. Labour must deliver on their promises if they are serious about fair funding for Wales.”
Calls for reform
Transport experts have echoed calls for substantial reforms. Professor Stuart Cole advocates for the full devolution of rail infrastructure, allowing Wales to manage its transport priorities. Meanwhile, Professor Mark Barry proposes that, in the absence of devolution, Wales should receive a ring-fenced fund of £2bn to £3bn over 15 years to address critical infrastructure needs.
What next for Wales’ railways?
While the UK Government’s recognition of underfunding is a crucial first step, the lack of firm financial commitments leaves Wales in uncertainty. The Wales Rail Board has highlighted immediate priorities, including Metro-style services, new stations, and capacity upgrades. However, with the UK Government citing public finance constraints, it remains unclear whether recognition will lead to real investment.
As spending decisions loom, Wales faces a critical question: will the UK Government back its words with action, or will this become another missed opportunity to rectify decades of neglect?
Photo caption: Underfunded: Wales’ rail network faces an uncertain future despite acknowledgment of funding shortfalls (Pic: Herald).
Politics
Senedd Member criticises ‘behind-closed-doors’ appointments
A SENEDD Member denounced his colleagues’ “absolutely stupid, behind-closed-doors” decision to nominate themselves for positions on an inter-parliamentary body.
Labour’s Alun Davies criticised the nomination process for the Senedd’s representatives on the UK-EU parliamentary partnership assembly, which was set up after Brexit.
Mr Davies, who represents Blaenau Gwent, hit out at the decision which was revealed in a letter to Senedd Members from Elin Jones, the speaker or Llywydd.
The chairs’ forum, which is made up of the chairs of Senedd committees, decided to nominate two of their own number following “discussion outside of the forum”.
Referring to the letter during a meeting of the legislation committee on January 13, Mr Davies said: “I disagree … I think it’s a stupid decision frankly, absolutely stupid decision.
“Now, it’s not surprising the chairs’ forum decides that chairs should represent the Senedd.
“That’s pretty unsurprising but the fact that we don’t have a representative from this committee on the UK-EU parliamentary partnership assembly is ludicrous, considering this committee has largely done the work on that.”
Mike Hedges, who chairs the committee, said: “In general, I believe every appointment should be made by the Senedd rather than via committees putting names forward.”
In her letter, Ms Jones confirmed the chairs of the economy and culture committees will represent the Senedd at the parliamentary partnership assembly.
She wrote that members had agreed to the “allocation of roles to be determined with those committee chairs outside the chairs’ forum meeting”.
But Mr Davies, a former minister in the Welsh Government who has been a backbencher since being sacked by Mark Drakeford in 2018, was dissatisfied.
He said: “I’ve got no notice of this chairs’ forum, obviously I’m not a part of it. I’ve got no input into it … and no report from it apart from this note telling us it’s all been decided.
“I think it’s the wrong decision. I don’t think this is the way that decisions should be taken in democracy – behind closed doors – I think it’s absolutely the wrong decision to take.”
Mr Hedges suggested: “Perhaps, we can go into more detail in the private session.”
The committee then agreed to exclude the public and press from the rest of the meeting, without providing any grounds for doing so as is required by the Senedd’s rules.
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