NEXT week, Senedd Members will vote on a £21 billion budget that will shape public services in Wales for the year ahead.

Welsh Government ministers are urging cross-party support for the 2025-2026 budget, highlighting its potential to boost jobs, economic growth, and environmental resilience. Cabinet Secretaries for Economy and Climate Change, Rebecca Evans and Huw Irranca-Davies, argue that the budget prioritises investment in businesses, flood defences, and green initiatives.

Support for businesses and economic growth

The budget includes a £335 million package to support businesses, including targeted relief for business rates. For the sixth consecutive year, retail, hospitality, and leisure businesses will receive specific financial assistance to help them recover from the lasting economic effects of the COVID-19 pandemic.

Additionally, childcare businesses will continue to be exempt from business rates, a move the government says will help parents re-enter the workforce while keeping childcare affordable.

Speeding up investment and infrastructure projects

To drive economic growth, the Welsh Government has pledged to accelerate planning decisions, aiming to reduce delays in major infrastructure projects that could create jobs and support the green economy.

Investment in climate resilience

Following several severe storms in recent months, the government says it remains committed to record levels of investment in flood defences. It has also partnered with the UK Labour Party to allocate millions to the coal tip safety programme, designed to mitigate risks from historic mining activity.

First Minister’s vision

First Minister Eluned Morgan said: “During my listening tour, people told me of their concerns about jobs in Wales. We want homegrown talent to stay in Wales and to attract talent from far and wide.

“That’s why this Budget backs jobs and green growth – supporting businesses, speeding up planning, and making it easier for parents to get back to work. At the same time, we are protecting our environment and seizing the opportunities that net-zero presents.

“We’re putting the money into Wales. Will Plaid Cymru and the Welsh Conservatives back jobs and green growth?”

Labour ministers criticise Conservative record

Cabinet Secretary for the Economy, Rebecca Evans, claimed that years of Conservative-led UK government policies had hindered Wales’ economic growth. She said: “After 14 years of Conservative governments who drove growth into the ground, two Labour Governments working together are determined to kickstart growth across all areas of Wales.

“The Welsh Conservatives take no responsibility and show no interest in helping to clean up the mess their party made. They have already said they won’t vote for more support for businesses.”

Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, said: “This Government is clear – we want to take advantage of the opportunities that the drive towards net-zero presents, with a just transition for jobs that leaves no one behind.

“Whilst Plaid Cymru talks about net-zero, it is this Welsh Labour Government that is putting money on the table to protect the people of Wales from the impact of climate change right now, while delivering opportunities for the future.”

Concerns raised by universities, NHS, and local government

While Welsh Labour has championed the budget as an economic boost, some organisations have expressed concerns over the allocation of funds.

Universities Wales has warned that the budget could be a “backward step” for higher education and local economies. They argue that the financial settlement risks harming universities, which play a crucial role in developing skills and attracting investment.

The Welsh NHS Confederation acknowledged the additional funding for health services but highlighted that six out of seven health boards have submitted deficit annual plans, reflecting ongoing financial strain. They cautioned that financial uncertainty could impact service delivery.

The Welsh Local Government Association (WLGA) welcomed an increase in core revenue funding but warned that councils face mounting pressures due to rising demand for social care, education, and housing. While the uplift in funding is appreciated, they say it may not be enough to prevent difficult budget decisions at a local level.

A divisive debate ahead

The budget vote, scheduled for Tuesday, March 5, is expected to be contentious. Labour ministers have positioned the financial plan as critical for jobs and climate resilience, but opposition parties remain sceptical.

Plaid Cymru has previously argued that Welsh Labour’s green investment does not go far enough, while the Welsh Conservatives have criticised the government’s economic policies, arguing they have failed to deliver tangible improvements for businesses and workers.

With spending decisions likely to have long-term implications for Wales, all eyes will be on the Senedd as the debate unfolds.