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Extra £1.5bn for public services as Welsh Government unveils spending plans

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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.

chart visualization

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.

First Minister Eluned Morgan

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.

Jane Dodds or Rhys ab Owen could play a role in helping the Welsh Government get its budget plans passed
Jane Dodds or Rhys ab Owen could play a role in helping the Welsh Government get its budget plans passed

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.

 

Business

New facilities at Haverfordwest Target Shooting Club agreed

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A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.

A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”

It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”

It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.

It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.

“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”

It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”

The application was conditionally approved by planners.

 

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News

Watchdog criticises health board over £10m GP contract checks

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A HEALTH board has been criticised by Audit Wales after GP contracts worth more than £10m were awarded without sufficient due diligence checks.

Aneurin Bevan University Health Board allowed a GP partnership associated with eHarley Street Primary Care Solutions to take on eight GP contracts in south-east Wales, with a combined annual value of around £10.1m.

Audit Wales said the board should have carried out greater scrutiny before approving the arrangements, including checks on financial resilience, workforce plans, business risks and the partnership’s ability to manage several practices at once.

However, the watchdog found no evidence of fraud and noted the board was dealing with significant pressure in general practice, including vacant contracts and limited interest from other bidders.

The report said weaknesses in governance and scrutiny contributed to later disruption and uncertainty for patients and staff when problems emerged.

Concerns included financial and workforce pressures, unpaid invoices, and issues relating to tax and pension payments. Some contracts were later handed back, requiring the health board to step in to protect services.

Natasha Asghar MS, Welsh Conservative Shadow Cabinet Minister for Health and Social Care, said the findings were “deeply concerning”.

She said: “Patients and staff were left facing disruption and uncertainty because proper scrutiny was not carried out before these contracts were awarded.

“The Welsh Conservatives believe lessons must be learned to ensure robust checks are in place, protect frontline services and restore confidence in primary care across Wales.”

Aneurin Bevan University Health Board accepted the recommendations and said it had already strengthened its processes.

Audit Wales said the case highlighted the need for stronger checks before GP contracts are transferred, particularly when a single partnership is taking on multiple practices in a short period.

 

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News

Welsh Conservatives demand clarity over EHRC guidance in schools

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THE WELSH CONSERVATIVES have called on the Welsh Government to clarify whether new Equality and Human Rights Commission guidance will be implemented in schools across Wales.

Shadow education minister Sam Rowlands MS has written to Cabinet Minister for Education and the Welsh Language Anna Brychan MS following the UK Supreme Court ruling on the Equality Act.

Mr Rowlands said schools, teachers, governors and parents needed clear answers on how the guidance would apply in practice, including on single-sex spaces, safeguarding, changing facilities and sports participation.

He said: “Parents, teachers and pupils deserve clarity from the Welsh Government.

“Schools cannot be left in limbo while ministers avoid making a decision on such an important safeguarding and legal issue.

“The Equality Act applies in Wales, and schools now need clear guidance on what this means in practice.”

In his letter, Mr Rowlands asks whether updated guidance will be issued to schools in Wales, whether schools will be expected to amend existing policies, and what advice will be given to headteachers on safeguarding and compliance with the Equality Act.

He also asks whether the Welsh Government intends to diverge from the approach set out by the EHRC.

The letter says schools and parents require “clear and consistent guidance” to ensure the rights, dignity and safety of all pupils are respected.

 

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