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Welsh Government outlines cautious 2026–27 Budget plan

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No major new spending as inflation-linked uplift promised for public services

THE WELSH GOVERNMENT has set out its approach to the 2026–27 Budget, confirming a cautious one-year plan ahead of the next Senedd election.

Finance Secretary Mark Drakeford, speaking in Plenary on Tuesday (Jul 1), said the Draft Budget would be published on 14 October and would increase departmental allocations in line with inflation. He said this was designed to give “stability” for public services and allow the incoming Welsh Government a clean slate to shape its own Programme for Government.

Mr Drakeford, a former First Minister, said: “I want to ensure we provide a stable and reliable outcome for our public services and all who rely on them. I also want to ensure the new Senedd we have worked so hard to create has the best possible platform from which to carry out its work.”

The final budget of the current Senedd term will not include major new spending commitments. Instead, it will ringfence a pool of unallocated funding for the next government to use based on its electoral promises.

Key dates for the budget process are:

  • 14 October 2025: Outline Draft Budget (high-level allocations)
  • 3 November 2025: Detailed Draft Budget (expenditure lines)
  • 20 January 2026: Final Budget publication
  • 27 January 2026: Budget vote in the Senedd

The Welsh Government said its overarching priorities remain unchanged: a healthier Wales, green jobs and growth, better connectivity between communities, and creating opportunity for every family.

However, critics have raised concerns that sticking to an inflation-only uplift could mean a continued squeeze on frontline services. In recent months, both the Welsh NHS and local councils have warned that “flat” settlements are not enough to meet demand or sustain service levels, particularly in health and social care.

The Institute for Fiscal Studies (IFS) has also noted that while the Welsh Government faces difficult choices, the scope for genuine reform or investment is limited without additional UK-wide funding or changes to devolved tax powers.

The Welsh Conservatives have repeatedly criticised the Labour-led government for prioritising non-essential spending over frontline services, citing money spent on Senedd reform and a universal basic income pilot.

The Herald understands that some Plaid Cymru members, while broadly supportive of a cautious approach in an election year, want to see more targeted investment in housing and climate resilience.

The budget will be the last before voters go to the polls in May 2026, with pressure likely to mount on all parties to set out their longer-term visions during what is expected to be a tightly fought campaign.

Community

Community gathers to remember Corrina Baker

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Lanterns and balloons released in emotional acts of remembrance

FAMILY, friends and members of the local community came together to remember Corrina Baker at a series of moving events held across west Wales this week.

Corrina’s funeral took place on Monday (Dec 15), a month after her death, with a public service held at St Mary’s Church. Mourners lined the route as her coffin was carried on its final journey in an elegant horse-drawn carriage, before a private cremation later took place at Parc Gwyn crematorium in Narberth.

Later that evening, shortly after 6:00pm, friends and relatives gathered at the Quayside in Cardigan for the first of two acts of remembrance to celebrate her life. Lanterns were lit and released into the night sky above the town as some of Corrina’s favourite songs were played.

On Tuesday afternoon (Dec 16), a second tribute was held near the location where Corrina was found. Twenty-one pink balloons — one for each year of her life — were released into a clear blue sky, each carrying personal messages in her memory.

Floral tributes continue to be laid at the Netpool, while a GoFundMe appeal set up in Corrina’s memory has raised more than £2,300. She has been described by those who knew her as “funny and bright”.

Dyfed-Powys Police have confirmed that their investigation into the circumstances surrounding Ms Baker’s death is ongoing. A 29-year-old man who was arrested on suspicion of murder has been released on bail while inquiries continue.

(Photos: Stuart Ladd/Herald)

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Community

Six untaxed vehicles seized in Milford Haven police operation

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SIX untaxed and abandoned vehicles were seized during a joint roads policing operation in Milford Haven on Tuesday morning.

Officers from the Milford Haven Neighbourhood Policing and Prevention Team (NPPT) worked alongside the Pembrokeshire Roads Policing Team as part of targeted enforcement across the town.

In addition to the vehicle seizures, a number of traffic offence reports were issued to drivers during the operation.

Police said the action formed part of ongoing efforts to improve road safety and tackle vehicle-related offences in the Milford Haven area.

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Community

Candlelit carol service brings community together in Milford Haven

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ST KATHARINE and St Peter’s Church in Milford Haven hosted its annual Candlelit Festival of Nine Lessons and Carols, bringing together members of the community for a traditional celebration of Christmas.

The service featured readings from the Mayor of Milford Haven, representatives of the Soroptimists, Milford Haven Amateur Operatic Society, the Headteacher and Head Prefects of Milford Haven School, Milford Haven Town Band, and NCI Wooltack Point.

Music for the evening was provided by organist Seimon Morris, Milford Haven Town Band and the Milford Haven Cluster Band, whose performances added to the atmosphere of the candlelit service.

The Friends of St Katharine and St Peter’s Church thanked all those involved and wished the community a happy Christmas.

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