News
Huge £100m boost for public services in new budget agreement
THE WELSH GOVERNMENT has unveiled a budget agreement securing over £100 million in additional funding for public services, with key investments directed at childcare, social care, local councils, transport, and the environment. The deal, reached with Jane Dodds MS, Leader of the Welsh Liberal Democrats, aims to bolster essential services, particularly in rural areas, and address pressing social and infrastructure concerns.
Key investments in the Final Budget 2025-26
The budget agreement, published on February 20 in the Senedd, details major funding allocations, including:
Support for early years education and childcare
- An additional £30 million has been allocated to expand the Flying Start programme, providing free childcare for two-year-olds across Wales.
- The hourly funding rate for childcare providers will rise from the previously proposed £6 per hour to £6.40 per hour, helping to support sustainability in the sector.
- The move follows concerns raised by the National Day Nurseries Association (NDNA) Cymru, which found that 89% of nurseries surveyed believed the previous rate was insufficient to cover rising operational costs.
NDNA Cymru Chief Executive Purnima Tanuku CBE welcomed the increase, saying: “This new deal is a step in the right direction and shows that the Welsh Government is committed to supporting providers who deliver vital early years places.”
Social care and hospital discharges
- £30 million will be allocated to social care services, aiming to reduce delayed hospital discharges and provide greater support within local communities. The funding is expected to alleviate pressures on the NHS by preventing unnecessary hospital admissions and improving community care services.
Local government and community investment
- A guaranteed 3.8% funding floor for all local authorities, costing £8.24 million, will benefit nine councils: Monmouthshire, Powys, Gwynedd, Vale of Glamorgan, Flintshire, Pembrokeshire, Ynys Môn, Ceredigion, and Conwy.
- £5 million has been set aside to enhance playgrounds and play facilities for children across Wales.
- £5 million will support leisure centres in becoming more energy efficient, addressing rising energy costs and sustainability concerns.
Transport and infrastructure upgrades
- A £15 million pilot scheme will allow young people aged 21 and under to pay just £1 per single bus fare to encourage greater public transport use and affordability.
- Extra funding will contribute to a £120 million local authority road and pavement repair scheme, tackling maintenance issues on Wales’ road network.
- Funding has also been secured to restore the fifth train service on the Heart of Wales line.
- £500,000 in capital funding will be allocated to improve toilet facilities along major roads across Wales.
Environmental and rural development measures
- £5 million will be used to combat water pollution in rivers and coastal areas.
- An extra £10 million has been allocated to support rural investment schemes, benefitting agricultural and environmental projects across Wales.
- A commitment has also been made to move towards a ban on greyhound racing in Wales, addressing concerns over animal welfare.
Additional community and cultural investments
The budget agreement also includes funding for feasibility studies to support several community projects, including:
- The development of the Wyeside Arts Centre in Builth Wells.
- The North Powys Wellbeing Campus in Newtown.
- Safety measures at the Pont y Bat junction on the A470.
- The refurbishment of Brynamman Lido.
Government and opposition responses
Cabinet Secretary for Finance Mark Drakeford praised the agreement, saying: “This demonstrates what can be achieved when the Welsh Government and Members of the Senedd work together constructively on areas where we have common ground. The additional investment will make a real difference to communities across Wales, particularly in rural areas.”
Jane Dodds MS, Leader of the Welsh Liberal Democrats, also welcomed the agreement, highlighting the benefits for families and local services. She stated: “I’m delighted we have secured the funds needed to deliver my party’s key priorities, including improving social care, increasing quality childcare, tackling water pollution, improving roads and public transport, and protecting vital council-run services.”
While the additional funding has been widely welcomed, some sectors argue that the increases may still fall short of covering rising costs. Early years providers stress that while the increase to £6.40 per hour is a positive move, further long-term investment is needed to ensure sustainability.
Similarly, concerns remain regarding ongoing pressures on the NHS and social care, as well as the state of Welsh roads, which have been in need of substantial repairs for years.
The Welsh Government maintains that this budget provides a strong foundation to address these challenges while working within financial constraints. However, it remains to be seen whether these measures will be enough to meet the growing demands of public services across Wales.
The Final Budget 2025-26 will now be debated in the Senedd before being officially passed into law.
News
RNLI assists in three-hour search for missing person
Belongings found on shoreline prompted multi-agency response in Pennar
ANGLE RNLI assisted in a three-hour search for a missing person in Pembrokeshire on Sunday evening, the charity has confirmed.
The lifeboat crew was tasked at 6:57pm to support an ongoing search in the Pennar area after coastguard teams from Dale, St Govan’s and Llansteffan had already been deployed for several hours.
The coastguard search was escalated after personal belongings were discovered on the shoreline, along with footprints leading into the water, prompting concerns for the individual’s safety.
Following the request for assistance, the Angle RNLI lifeboat launched and arrived on scene shortly afterwards, beginning a coordinated shoreline search.
Conditions were described as difficult, with a strong southerly wind and driving rain significantly reducing visibility.
Due to the circumstances and potential risk to life, Coastguard Rescue Helicopter R924, based at Newquay, was also deployed to assist with aerial searches of the area.
After a thorough multi-agency operation, all search assets were stood down at around 10:00pm.
Police later confirmed that the missing person had been located safe and well in Pembroke Dock.
Business
Pembrokeshire industrial jobs ‘could be at risk’ as parties clash over investment
TRADE unions have warned that hundreds of industrial jobs in Pembrokeshire could be at risk without stronger long-term support for Welsh manufacturing, as political parties set out competing approaches ahead of the Senedd elections.
TUC Cymru says its analysis suggests 939 industrial jobs in Pembrokeshire could be vulnerable if investment in clean industrial upgrades were withdrawn, warning that policies proposed by Reform UK, and to a lesser extent the Conservatives, pose the greatest risk to industrial employment.
The warning comes as the union body launched its “Save Welsh Industry – No More Site Closures!” campaign at events in Deeside and Swansea, calling on all political parties to commit to a five-point plan to protect and future-proof Welsh industry.
According to TUC Cymru, jobs at risk locally include 434 in automotive supply chains, 183 in rubber and plastics and 75 in glass manufacturing. The union body says these sectors rely on continued investment to remain competitive and avoid offshoring.
TUC Cymru said its modelling focused on industries most exposed to closure or relocation if industrial modernisation and decarbonisation are not delivered. It argues that without sustained public and private investment, Welsh manufacturing faces further decline.
A GMB member working at Valero in Pembrokeshire said: “It’s clear Nigel Farage has no clear plan. I can see this industry collapsing under his policies. We need support, not division. His way will lead to job losses across the board and the lights will go out.”
The union body stressed that all parties need to strengthen their industrial policies, but claimed Reform UK’s stated opposition to net zero-related investment would place the largest number of jobs at risk across Wales, estimating that almost 40,000 industrial jobs nationally could be affected. Conservative policies were also criticised, though the TUC said the likelihood of job losses under the Conservatives was lower.
Labour has rejected claims that Welsh industry is being neglected, pointing to recent investment announcements made at the Wales Investment Summit, where more than £16bn worth of projects were highlighted as being in the pipeline across Wales.
Ministers said the summit demonstrated growing investor confidence, with projects linked to clean energy, advanced manufacturing, ports, digital infrastructure and battery storage, and thousands of jobs expected as schemes move from planning into delivery.
Labour has argued that public investment is being used to unlock private sector funding, particularly in industrial regions, and says modernising industry is essential to keeping Welsh manufacturing competitive while protecting long-term employment.
At UK level, the party has also highlighted its National Wealth Fund and GB Energy commitments, which it says will support domestic supply chains, reduce long-term energy costs for industry and help secure both existing and future jobs.
Opposition parties and some business groups have questioned whether all announced projects will translate into permanent employment, arguing that greater clarity is needed on timescales and delivery.
Reform UK has argued that scrapping net zero policies would cut public spending and reduce costs for households and businesses, while the Conservatives have pledged to roll back climate-related targets and reduce regulation on industry.
Unions dispute those claims, warning that higher electricity prices and a lack of investment would make Welsh industry less competitive internationally.
TUC Cymru President Tom Hoyles said Welsh industry needed urgent action from all parties to survive and thrive in the 21st century, warning that policies which sought to turn back the clock could put thousands of Welsh jobs at risk.
With industrial areas including Flintshire, Neath Port Talbot and Carmarthenshire also identified as facing significant pressures, the future of Welsh manufacturing is expected to remain a key political issue in the run-up to the Senedd elections.
Education
School leaders deliver Christmas cards to Senedd calling for fair funding
SCHOOL leaders from across Wales are delivering Christmas cards to the Senedd today in a symbolic call for fair funding for schools.
The cards, one for every Senedd member, are being delivered by school leaders’ union NAHT Cymru, urging politicians to give children in Wales what it describes as the “best Christmas gift” – a fully and fairly funded education.

NAHT Cymru national secretary Laura Doel and president Kerina Hanson are gathering outside the Senedd at 1:00pm today before handing the cards in at the Senedd reception.
The action follows the union’s warning last week that while £339m came to the Welsh Government as a result of increased education spending in England for the 2026/27 draft budget, only £39m has so far been allocated to core school budgets in Wales.
Earlier this week, an additional £112.8m was allocated to local government following a budget agreement between the Welsh Government and Plaid Cymru, with some of that funding expected to reach schools.
However, NAHT Cymru says the additional money will fall well short of what is needed. The Welsh Local Government Association has predicted a £137m shortfall in school budgets in Wales for the next financial year, while local authorities are also facing a £200m deficit in social care funding.
The union has also raised concerns that the First Minister has declined to explain how the £339m of additional education funding has been allocated, prompting calls for urgent and transparent scrutiny of the budget.
Speaking ahead of the card delivery, Laura Doel said: “Christmas is a time of giving, and we’re urging the Welsh Government to give schools in Wales the funding they rightfully deserve.
“The money that comes to Wales for education should be spent on education, yet we know much of it has never reached schools. We urgently need clarity on where this money has gone and to see greater investment going directly to pupils.
“The system is at breaking point, and without action we are facing an incredibly bleak new year for schools across Wales.
“We’re calling on every member of the Senedd to act this Christmas and give children in Wales the best possible gift – a fully and fairly funded education.”
The Welsh Government says education remains a priority, pointing to additional funding agreed with Plaid Cymru for local government, some of which is expected to support schools.
However, teaching unions and local authorities continue to warn that funding pressures remain severe.
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