Politics
Welsh Government’s £26bn budget passes with Lib Dem support

THE SENEDD signed off on the Welsh Government’s £26bn budget for the coming year after ministers struck a deal with the Liberal Democrats.
Senedd Members voted 29-28 in favour of the final budget, with Welsh Lib Dem leader Jane Dodds abstaining after securing more than £100m worth of commitments from ministers.
Labour, which holds half the Senedd’s 60 seats, needed the support of at least one opposition member to pass spending plans for the 12 months from April.
The deal with Ms Dodds, the Lib Dems’ only Senedd Member, included a promise to ban greyhound racing in Wales and allocate £15m for a pilot of £1 bus fares for under-22s.
The MP-turned-Senedd Member secured £30m for childcare, £30m for social care, £10m for playgrounds and leisure centres, £10m for rural investment and £5m to address pollution.
Ministers also committed £8m to a “funding floor” to reduce variation across Wales’ 22 councils, with each set to receive a minimum increase of 3.8%.
Leading a debate on March 4, finance secretary Mark Drakeford said the 2025/26 budget provides an additional £1.6bn for public services.
The former First Minister told the Senedd: “No party has ever had a majority since devolution began, so we have always had to craft a path to stability in Wales.”
Prof Drakeford added: “Those who send us here believe it is a strength to see different political parties working together and so do I. So, I’m grateful to Jane for putting the interests of the people of Wales above the daily clash of politics.”
Without the deal, ministers faced losing more than £4bn in the financial year from April.
Ms Dodds, who represents Mid and West Wales, said she felt a deep sense of responsibility to reach an agreement on the crucial budget.

She told the Senedd: “If we don’t pass this budget, we risk losing billions for the people of Wales and I cannot in good conscience let that happen.”
But, explaining her decision to abstain, she said: “I cannot fully support a budget that falls short of delivering the investment and radical change Wales needs.”
Sam Rowlands, the Conservatives’ shadow finance secretary, was disappointed to see the sole Lib Dem “propping up” the Welsh Government through a “pretty weak” deal.
Darren Millar, leader of the Tory group, told the Senedd his party would vote against the budget to “bring to an end 26 years of a failing, tired, clapped-out Labour government”.
“Our money is being frittered away,” he said, criticising spending on nationalising Cardiff Airport, Transport for Wales, the 20mph default speed limit and more Senedd Members.

Referring to Mr Millar missing a debate on the draft budget last month for a prayer breakfast in the US, Labour’s Alun Davies said: “We listened to the fire and fury from Darren Millar.
“He obviously learned more when he was in Washington than simply what Donald Trump enjoys for breakfast. And, of course, he talks about closing overseas offices – he’s the greatest travel agent we’ve had in this chamber.”
In recent years, Plaid Cymru helped the Welsh Government pass its budgets in return for 46 commitments but the party pulled out of the co-operation agreement last May.
Party leader Rhun ap Iorwerth criticised a “spurious argument” that by voting against the “flawed” budget, Plaid Cymru would be voting against individual spending decisions.

Heledd Fychan, the party’s shadow finance secretary, called for fairer funding for Wales, pointing out that resource funding sees the lowest real-term increase of all devolved nations.
She warned additional funding could be “swallowed up” by national insurance increases.
Mark Drakeford accused Plaid Cymru of washing its hands, claiming he met Ms Fychan three times and not once did she set out the party’s demands to support the budget.
Mr ap Iorwerth said: “It’s very, very clear that we took a different approach to this budget from [the] Welsh Government: our demands were too great in this instance.”
Prof Drakeford replied: “The political cul-de-sac into which Plaid Cymru has backed itself … is a prime example of the Denis Healey first law of holes – if you’re in one: stop digging. But you’ve been digging as though there was no end in sight.”
The Senedd agreed to make no changes to Welsh rates of income tax in 2025/26, as has happened every year since Wales gained some powers to vary rates in April 2019.
Prof Drakeford said he would commission a review into more income tax powers, similar to Scotland where there is an additional band and rates that diverge from the rest of the UK.
Senedd Members also approved the final £9.5bn settlement for councils as well as the Welsh Government’s £112m component of funding for police and crime commissioners.
News
Criticism over lack of response to decline of Welsh-speaking communities

A PLAID CYMRU Member of the Senedd has criticised the Welsh Government for failing to acknowledge the crisis facing Welsh-speaking communities, as concerns grow over the language’s decline.
During First Minister’s Questions on Tuesday (Mar 18), Cefin Campbell, Plaid Cymru MS for Mid and West Wales, pressed the Welsh Government on when it would respond to the final report of the Commission for Welsh-speaking Communities. The report, published in August 2024, sets out policy recommendations to support the language in its traditional strongholds.
Eluned Morgan, First Minister of Wales, stated that the government’s response will be published during the Urdd Eisteddfod in May. However, she could not confirm whether the recommendations would be implemented before the end of the current Senedd term.
The Commission was set up in November 2022 in response to what the Welsh Government described as a “socio-economic and societal crisis” in Welsh-speaking communities, highlighted by the 2021 Census. The final report was presented to the First Minister last August at the National Eisteddfod in Pontypridd, but seven months later, the government has yet to issue a formal response.
Carmarthenshire, the home county of Mr. Campbell, has seen a sharp decline in Welsh speakers. In 2001, 50.3% of residents spoke the language, falling to 43.9% in 2011 and 39.9% in 2021.
Speaking in the Senedd, Mr. Campbell said: “This is an extremely valuable piece of research and reflection by experts in the field, which sets clear recommendations for the Government to enact. These include measures in education, housing, planning, and economic development to prevent further decline and support the recovery of our Welsh-speaking communities.
“There are only 14 months left until the next Senedd election. Time is running out, and the clock is ticking for our Welsh-speaking communities.
“When will the Government publish its response to this report, and can we be confident that its recommendations will be implemented before the end of this Senedd term?
News
Government’s £5bn benefits crackdown: What It means for Pembrokeshire

New reforms could hit disability claimants hardest
THE UK GOVERNMENT has unveiled a major reform of the welfare system, aiming to save £5bn by 2030 through stricter eligibility rules for benefits such as Personal Independence Payment (PIP) and Universal Credit (UC). With 19.5% of households in Pembrokeshire claiming Universal Credit, these changes could have a significant impact locally, particularly for disabled residents.

However, early analysis suggests PIP claimants will be hardest hit. While Universal Credit recipients will see some structural changes, including the scrapping of the Work Capability Assessment (WCA) in 2028 and a permanent above-inflation rise, PIP recipients face much tougher eligibility criteria, potentially disqualifying around a million people nationwide.
Local impact on Pembrokeshire
With 26% of its population aged over 65—one of the highest proportions in Wales—and above-average disability rates, Pembrokeshire could be disproportionately affected. Many residents rely on PIP to supplement low wages or provide financial support when work is not an option.
Pembrokeshire’s economy is heavily dependent on seasonal work, tourism, and public services, with 14% of workers self-employed—many in physically demanding jobs. Health and disability benefits play a crucial role for those unable to work year-round.
Key changes announced
Universal Credit (UC)
- Above-inflation increase – Payments will rise permanently to £775 per month by 2030.
- Work Capability Assessment scrapped (2028) – Future assessments for extra support will be through PIP instead.
- Right to Try – Claimants will be encouraged to return to work without immediately losing benefits.
- Under-22s lose incapacity top-up – Young people will no longer qualify for an additional health-related payment, a move designed to deter school leavers from going straight onto benefits.
Impact: Universal Credit claimants face mixed consequences. The removal of WCA could reduce stress for those with long-term conditions, and higher payments may help some households. However, the removal of incapacity top-ups could create financial hardship for young disabled claimants.
Personal Independence Payment (PIP)
- Stricter eligibility rules – Claimants must score at least four points in one category to qualify for PIP’s daily living element.
- Up to one million people could lose support – Early estimates suggest a significant number may no longer qualify.
- No means-testing (yet), but tougher assessments – Changes may disproportionately affect those with mental health conditions and fluctuating illnesses.
Impact: Many disabled residents in Pembrokeshire may struggle to qualify for PIP, which in turn affects their Universal Credit top-ups. Those with mental health conditions, long COVID, or conditions such as multiple sclerosis and fibromyalgia may face difficulties meeting the new criteria.
What does this mean for Pembrokeshire?
- Higher risk for disabled claimants – With an aging population and a significant number of residents on disability benefits, many may lose essential support.
- Rural and seasonal work challenges – Physically demanding jobs in tourism, construction, and agriculture mean PIP is crucial for those unable to work due to health conditions.
- Potential rise in hardship – Child poverty in Pembrokeshire is already one of the highest in Wales (24.7%). If PIP claimants lose financial support, demand for food banks and social services could increase.
Local perspective
Pembrokeshire has a lower-than-average employment rate (73.8%) and high self-employment (14%), meaning many workers lack stable income or sick pay. The county also faces social care pressures, with 641 adults receiving domiciliary care. If PIP eligibility tightens, many claimants could lose both disability payments and their health-related UC top-ups, leaving some without financial support entirely.
Responding to the Government’s Green Paper on Welfare reforms, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “You don’t get more people into work by slashing support for disabled people who need it.
“If we are to reduce the welfare bill, we need to focus on prevention and get serious about fixing health and social care in Wales, alongside improving mental health treatment provisions.
“Far too many people in Wales are left deteriorating on extreme waiting lists, unable to work and often become sicker while they wait for treatment.
“We are also concerned that the Chancellor’s budget is failing to create new jobs for people to join, with the national insurance rise contributing to job losses and hiring freezes across Wales.
“This is in addition to the fact that in many former industrial parts of Wales, jobs that were lost have never been replaced which is why we need a real economic strategy to breathe new life into these communities.”
What happens next?
The government has launched a Green Paper consultation on the reforms. However, with Labour facing internal criticism over the changes, further amendments could still be made before they take full effect.
Have your say
The Herald wants to hear from Pembrokeshire residents:
- Are you worried about losing your benefits?
- Do you think the “Right to Try” scheme will help you get back into work?
- How will these reforms impact your household?
Email The Herald with your views.
Final verdict
Pembrokeshire at higher risk – With a high disability rate, older population, and reliance on seasonal work, the county may see a rise in financial hardship due to these reforms.r say
Universal Credit claimants – Some may benefit from higher payments and no longer facing Work Capability Assessments, but young disabled people will be hit hardest.
PIP claimants – The biggest losers. Many may lose their entire benefit due to stricter scoring rules, which in turn affects their UC top-ups.
We want to hear from Pembrokeshire residents affected by these changes. Are you worried about losing your benefits? Will the new support help you get back into work? Email The Herald with your views.
Politics
Plaid Cymru demand for ‘fair share’ from HS2 voted down

THE SENEDD rejected Plaid Cymru calls to demand HS2 be redesignated as an England-only project to unlock billions of pounds of consequential funding for Wales.
Senedd Members voted 42-12 against a Plaid Cymru motion on HS2, a high-speed railway from London to Birmingham, following a debate on March 12.
The project was classified as a Wales-and-England project in 2015 by David Cameron’s UK Government despite not an inch of track crossing the border.
As a consequence, no funding has come to Wales under the Barnett formula but Scotland and Northern Ireland have received a population share of HS2 spending.
Plaid Cymru has made the case for £4bn in compensation based on estimates of the total cost but the Welsh Government has quoted a £400m figure based on spending to date.
Peredur Owen Griffiths, the party’s shadow transport secretary in the Senedd, warned Welsh rail infrastructure has been systematically underfunded by the UK Government.

Calling for an end to “fundamental injustice”, he said: “Wales has received a fraction of the rail enhancement funding it is owed, our infrastructure has suffered from decades of neglect and the UK Government has failed to deliver the fair funding Wales needs.”
The Plaid Cymru politician pointed to an acknowledgment from Heidi Alexander, the UK transport secretary, that Wales has received low levels of funding historically.
“But this underfunding is not just historical, it is ongoing,” he warned. “Westminster, whether red or blue, continues to deny Wales the consequentials it is due.”
Mr Owen Griffiths raised concerns about reports that UK chancellor Rachel Reeves plans to freeze spending on major new rail projects until after the 2029 general election.
Pointing out that Welsh ministers previously called for £5bn in consequential funding, he told the Senedd: “Clearly, the people of Wales cannot trust this Labour party to stick to its word.”
Mr Owen Griffiths criticised the Welsh Government’s “delete-all” amendment, which was narrowly agreed, for “U-turning” on previous policy positions.
He said: “Now, when it truly matters, they have collective amnesia. What has changed? … The only thing that has changed is Labour’s willingness to stand up for Wales when they finally got the chance to do something about it.”
Peter Fox, the Tories’ shadow transport secretary, accused Labour of playing politics. “It must be embarrassing for Labour backbenchers, hence not many here,” he said.

Labour’s heckler-in-chief Lee Waters pointed out: “There’s nobody on your front bench.”
Mr Fox said: “Politicians in both Wales and England were calling for billions of pounds … but now Labour are in power in Westminster, their call is for just a meagre £400m.”
Labour backbencher Mick Antoniw pointed out that the previous Conservative UK Government could have designated HS2 as an England-only project.
Mr Fox, a former council leader, said the Tory Senedd group has stood against its own party on HS2 funding, adding: “It’s a kick in the teeth that you are turning your back.”
His Conservative colleague Gareth Davies warned of a “grotesque imbalance” between spending on rail in north Wales compared with the south of the country.
Labour’s Hefin David remarked: “The closer we get to an election, the poorer the standard of debate happens to be in this chamber. You would swear … that actually there’s been no progress whatsoever on rail in Wales which is manifestly not the case.”

Dr David pointed out that the newest trains in the whole of Europe now run on the Rhymney line through his Caerphilly constituency following an “incredible transformation”.
Welsh Lib Dem leader Jane Dodds said: “I feel these … debates are really the opposition parties putting down a motion and the Welsh Government saying ‘delete all’, and it feels like on this occasion just for the point of doing it and that depresses me beyond belief.”
Labour’s Alun Davies agreed, saying: “I don’t believe that’s the correct way of approaching these debates. We should look for consensus where possible – and that’s coming from me. We should look towards amending motions rather than deleting them.”
Wales’ transport secretary Ken Skates said the Welsh Government took ownership of the core valley lines and “transformed a liability into an asset”.

He told the Senedd: “And now that we have a Labour UK Government we will transform services across north Wales as well, increasing services by 50% next year.”
Mr Skates said a review of Network Rail processes will ensure Wales finally receives a fair share of all future rail infrastructure investment.
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