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Health

Welsh Government pledges to boost NHS and schools following Spring Statement

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First Minister says UK Government funding will help Wales tackle waiting times and support communities

THE FIRST MINISTER has welcomed a £1.6bn funding boost confirmed in the UK Chancellor’s Spring Statement – saying it will allow the Welsh Government to invest in health, education, and communities across the country.

In a measured response to the Chancellor Rachel Reeves’ economic update, First Minister Eluned Morgan acknowledged the difficult financial context but stressed that Wales stood ready to use the additional resources to deliver real improvements.

She said: “The Spring Statement confirms the £1.6bn boost to our funding for the next financial year and provides an additional £16m on top of that.

“Wales will benefit from a growing economy and interest rates that are going down.”

The statement comes after the UK Government outlined a package of spending plans aimed at restoring fiscal balance, including controversial cuts to disability benefits and warnings from the Office for Budget Responsibility about sluggish income growth and rising inflation in 2025.

Despite the uncertain national outlook, the First Minister said Wales remained focused on its priorities.

“Our commitments remain firm,” she said. “The confirmed boost to our funding from the UK Government for 2025-26 means the Welsh Government will strengthen our NHS, cut waiting times, support schools and help communities thrive – making real differences to people’s lives.”

She also confirmed that ministers in Cardiff Bay would now review the broader implications of the Spring Statement.

“We will now thoroughly assess the Spring Statement’s implications on our future spending plans,” she added.

The Welsh Government has already faced criticism over pressures on the health service and education, with local authorities calling for more support to deal with inflationary pressures and increasing demand.

While the funding uplift is welcome, public sector leaders are warning that tough choices still lie ahead, particularly given the impact of UK-wide welfare reforms and cost-of-living challenges facing Welsh households.

The Herald understands that ministers will meet next week to begin budget planning in light of the new figures.

To add some context, here is what Gus Williams, interim CEO at Chambers Wales South East, South West and Mid, said. He told The Pembrokeshire Herald: “As expected, there was not much in terms of new announcements in the Chancellor’s Spring Statement today. The OBR forecasts highlight economic concerns already familiar to most businesses in Wales. Inflation concerns have not yet disappeared and there are worries about business and consumer confidence.

“Infrastructure and housing falls within the remit of the Welsh Government and like the rest of the UK, Welsh businesses support the prioritisation of simplifying the planning system but are keen to see the proof of this with spades in the ground. The industrial strategy and increased defence spending we hope will have a positive impact in Wales where the manufacturing and defence industries have a significant presence. Infrastructure investments are proven to boost economic investment, and channelling more spending out of the civil service and directly into infrastructure and increasing the amount of funding available to Wales is also welcome, providing the right projects are chosen.

“It is difficult to see any significant improvement in confidence and investment driving economic growth without capital investment led by the government. The government remains bound by fiscal rules that I would argue ignore the economic impact of borrowing to fund capital investments. Part of the problem has been the lack of any robust return on investment analysis on government spending.

“Consumer confidence remains hamstrung by a two-tier economy. The success of healthcare, welfare, and employment reforms will hang on whether they manage to improve overall employment and wage growth; this will be a big test over the next 12 months. The government has been clear that this is how it expects to be judged in the long term.

“Business owners are facing significant headwinds, the full impact of which we are yet to see. The economy could break out of these headwinds but the government will need to lead the way – just cutting spending will not change much, reform needs to achieve change.

“Global trade remains the government’s other major challenge. At the moment the government is trying to balance its relationship with the US and EU and whether events will force them off the fence one way or another remains to be seen. With domestic demand static, growth may be dependent on how the global trade environment now evolves.”

From a business point of view, Lloyd Powell, head of ACCA Cymru/Wales, said: “This week’s announcements by the Chancellor are likely to be cautiously welcomed by Welsh businesses.

“Small businesses in particular will be pleased to have some breathing space on VAT, with the threshold increased slightly to £90,000. ACCA had called for this given the artificial brake on growth it represents for smaller businesses, combined with the knock-on impact to HMRC of dragging more businesses into this tax regime at a time when service levels are already at historically poor levels.  

“We welcome the commitment to further improvements to the R&D tax relief scheme, as well as plans to improve regulation in the tax advice market, to recognise the value of professional agents. 

“As well as the effects from the NI cut, VAT registration threshold increase, child benefit changes, alcohol and fuel duty freezes, the Chancellor announced that Wales will be allocated a ‘Barnett consequential’ of £170m. He also announced Levelling Up funding for Welsh projects – £10m for Venue Cymru and £5m for Newport. The Chancellor also announced a £160m deal for the UK government to purchase the site of the planned Wylfa nuclear site in North Wales. 

“The Chancellor announced the scrapping of the Furnished Holiday Lets scheme, which gives extra tax reliefs on properties being rented out to holidaymakers. There are more than 11,000 self-catering holiday lets in Wales, according to the Welsh Government’s latest list of properties paying non-domestic rates. 

“Whilst a welcome simplification to the tax system overall may boost the availability of rented accommodation locally, the removal of the short-term holiday let regime will be a blow for some. The Welsh Government has already introduced changes to make it harder for holiday lets to be exempt from council tax.”

Health

Major investment confirmed for GP services in Wales

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Government unveils £41m boost, but practices warn pressures remain acute

MORE than £41m in extra funding will go into general practice in Wales this year following a new agreement between the Welsh Government, NHS Wales and GP leaders. Ministers say the deal provides stability at a time of rising demand — but the settlement comes against a backdrop of sustained pressures, recruitment challenges and concerns over patient access.

The package includes a 4% uplift to the General Medical Services (GMS) contract for 2025-26, in line with independent DDRB pay recommendations, and a guaranteed 5.8% recurrent uplift from 2026-27. The Welsh Government says the multi-year commitment will allow practices to plan ahead, modernise systems and strengthen community-based services.

Health Secretary Jeremy Miles said the investment showed an “unwavering commitment” to general practice, adding: “The 4% pay uplift ensures fair recognition for GPs and practice staff who work tirelessly to deliver care for communities across our country. Multi-year funding gives practices the confidence to invest in the transformation primary care needs.”

However, the announcement comes at a time when many Welsh practices continue to report severe workforce pressures, rising demand, and longstanding challenges in recruiting new partners. GP numbers have fallen over the past decade, with some practices handing back contracts or operating list closures because of unsustainable workloads. Patient satisfaction with access has also declined, according to the latest Welsh GP Patient Survey.

What the deal includes

The settlement for 2025-26 comprises £37.9m of new investment and £4m in re-invested capacity funding, with the key elements including:

  • A 1.77% uplift in expenses, intended to help practices manage inflationary pressures in energy, staffing and running costs.
  • A recurrent £20m stabilisation fund to support practices facing immediate operational pressures and to prepare for wider reform under the incoming Sustainable Farming Scheme model for health.
  • An increased partnership premium, aimed at retaining experienced GPs and encouraging new partners into a model that some say has become less attractive due to financial and regulatory risk.
  • A full review of the GMS allocation formula — the first in more than 20 years — which determines how funding is distributed between practices. Some rural and deprived communities have long argued the current system does not reflect the complexity of local health needs.

Wider context

General practice remains the foundation of the NHS, accounting for around 90% of patient contacts, yet it receives a proportionally small share of the overall health budget compared with hospital services. Both the Welsh NHS Confederation and GPC Wales have repeatedly warned that without sustained investment, primary care risks being unable to meet increasing demand from ageing populations and rising chronic illness.

The Welsh Government’s own “community-by-design” programme relies on shifting more care closer to home, reducing pressure on emergency departments and supporting earlier intervention. For that to be achieved, GP leaders say investment needs to be matched with workforce expansion, improved digital systems, and clear strategies to retain experienced clinicians.

Working groups will now be set up to examine access standards, diabetes prevention and new service models.

Mr Miles said he was pleased that GPs would be “actively contributing to creating innovative care models that enhance access, improve outcomes and deliver care locally.”

GP representatives broadly welcomed the deal but have stressed that it is only one step in addressing the scale of challenge across primary care.

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Health

Welsh NHS leaders hail GP contract deal as “vital step” in strengthening primary care

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Agreement secures investment, digital upgrades and better patient pathways

WELSH NHS leaders have welcomed the successful conclusion of the new General Medical Services (GMS) contract for 2025-26 — and key elements of 2026-27 — describing it as a “positive example of social partnership” at a pivotal moment for general practice.

The deal, negotiated between Welsh Government, the Welsh NHS Confederation and GP representatives, sets out new investment and commitments for frontline primary care, including accelerated digital transformation through the NHS Wales App and strengthened support for population-level health management.

Darren Hughes, director of the Welsh NHS Confederation, said the agreement comes at a crucial time for GP services across Wales.

He said: “NHS leaders welcome this agreement as a positive example of social partnership in action. We also welcome the commitment to accelerating digital transformation for patients through the NHS Wales App and the measures agreed in the contract to enable enhanced population health management, such as diabetes management.”

Mr Hughes added that GPs and their multidisciplinary teams remain “the front door to the NHS,” and stressed that investment in general practice is essential if Wales is to treat more people closer to home.

“Evidence shows investing in primary and community care reduces demand on hospitals and emergency care and delivers returns of £14 for every £1 invested. To enable this shift ‘upstream’ from hospital-centred care to integrated services in the community, we must develop care pathways and joint performance measures that address the full needs of individuals,” he said.

Background: Why the GP contract matters

General practice forms the foundation of the Welsh NHS, handling millions of patient contacts every year. According to the latest official figures for 2023-24:

  • Over 29 million calls were received by GP practices
  • 18 million appointments took place
  • 11 million of these were face-to-face
  • More than 200,000 home visits were carried out
  • 78 million prescriptions were dispensed
  • Over 14,000 medication reviews took place

Demand has continued to rise while GP numbers have come under sustained pressure, particularly in rural areas such as Pembrokeshire, Ceredigion and Powys, where recruitment remains a long-running challenge. Practices in West Wales have repeatedly reported difficulties filling vacancies and increasing reliance on multidisciplinary teams, including nurse practitioners, pharmacists and physiotherapists.

The new GMS contract is therefore seen as a key mechanism for stabilising the sector, supporting digital access, improving chronic disease management, and helping to deliver the Welsh Government’s community-by-design programme, which aims to shift care away from hospitals and into community settings.

A recent survey by the Welsh NHS Confederation found that 74 per cent of NHS leaders support moving resources from acute hospital services into primary care, community-based services, mental health and social care, reflecting growing consensus around early intervention and prevention.

What comes next

The Welsh Government is expected to outline further detail in the coming months on how investment will be delivered at practice level, including support for digital tools, workforce development and shared performance measures with health boards.

With winter pressures mounting and hospitals facing record demand, NHS leaders say the success of the new GP contract will be central to improving access, reducing waiting times and ensuring patients in communities such as Pembrokeshire, Carmarthenshire and Ceredigion can receive timely, local care before conditions escalate.

The Welsh NHS Confederation represents all seven local health boards, the three NHS trusts, Health Education and Improvement Wales, and Digital Health and Care Wales.

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Charity

Motorcycle fundraisers transform children’s play area at Glangwili Hospital

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Long-running 3 Amigos and Dollies group marks 25 years of support

THANKS to outstanding fundraising by the Pembrokeshire-based 3 Amigos and Dollies Motorcycle Group, Hywel Dda Health Charities has funded a major improvement of the outdoor play area at Cilgerran children’s ward in Glangwili Hospital — a project costing more than £15,000.

The 3 Amigos and Dollies have supported Hywel Dda University Health Board’s children’s services for twenty-five years, with their Easter and Christmas toy runs becoming landmark dates in the local calendar, drawing hundreds of bikers and supporters from across west Wales.

The latest funding has delivered a full transformation of the ward’s outdoor space, including a re-sprayed graffiti wall, new toys and play equipment, a summer house, improved storage, and a moveable ramp to make the area more accessible for young patients. Members of the group even volunteered to help paint and refresh the space themselves.

Paula Goode, Service Director for Planned and Specialist Care, said: **“We are so grateful to the 3 Amigos and Dollies Motorcycle Group for their amazing support. Not only have they raised an incredible amount for the ward, but they have given their time to help make the outdoor space as special as possible.

“Outdoor play greatly reduces stress and anxiety for children, and it provides a vital opportunity to meet other young people going through similar experiences. It benefits both their physical and mental wellbeing, so we couldn’t be happier with the transformation.”

Tobi Evans, a volunteer with the fundraising group, said: “Because of the generosity of everyone who donates, we are able to give thousands each year. We are always humbled by how much people give, and it’s thanks to them that we’ve reached our 25th year.”

Katie Hancock, Fundraising Officer for Hywel Dda Health Charities, added: “We can’t thank the 3 Amigos and Dollies enough for their support for Cilgerran ward. You have put a smile on so many faces. Diolch yn fawr!”

Hywel Dda Health Charities funds items, equipment and activities that go beyond core NHS funding, making a meaningful difference to children and families across mid and west Wales.

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