THE LABOUR Welsh Government has struck a £300m deal with Plaid Cymru to pass its £27bn spending plans for next year, with additional money for the NHS and councils.

The budget agreement will allow the Welsh Government’s final budget for 2026/27 to pass through the Senedd in January, averting a potential crisis for public finances.

Labour cannot pass a budget on its own because the party is two votes short of a majority after Plaid Cymru won the Caerphilly by-election.

Since the draft budget was published, councils have warned of a £400m funding gap and experts suggested the NHS faced a “historically low” funding settlement.

Without a deal, the picture would have been far worse – with the Welsh budget automatically reverting to 75% of last year’s, rising to 95%, costing public services billions of pounds.

The deal, which was announced in a written statement from First Minister Eluned Morgan, includes an extra £112m for councils, so all local authorities will receive at least 4% more.

An additional £180m will be spent on health and social care, the equivalent of a 3.6% increase. Meanwhile, £120m of longer-term capital funding will be available for the next government following the Senedd election in May 2026.

Baroness Morgan said: “This agreement shows the strength of the Senedd parties working together on shared priorities to deliver for Wales. Through this agreement we have secured the passage of the budget and prevented potentially catastrophic cuts to funding next year.”

Plaid Cymru previously supported Welsh Government budgets under the cooperation agreement, which contained 46 commitments, between December 2021 and May 2024. The party was in the ‘One Wales’ coalition government with Labour from 2007 to 2011.

Heledd Fychan, Plaid Cymru’s shadow finance secretary, warned the Labour draft budget would have been “catastrophic” for public services. She said her party was not prepared to let that happen as she pointed to more funding for councils and the NHS under the deal.

Last year’s budget was voted through after ministers cut a £100m deal with Jane Dodds, the Liberal Democrats’ Welsh leader and the party’s sole Senedd Member.

Ministers had been in budget talks with Conservative and independent Senedd Members for weeks, with the Tories calling for land transaction tax on primary homes to be scrapped.

Darren Millar, the Conservatives’ leader in the Senedd, described the deal as “another Labour-Plaid Cymru stitch-up”, accusing the First Minister of “playing games”.

He said: “Labour and Plaid’s deal will mean yet more of the same wasteful spending on extra politicians, overseas embassies and trees, instead of focusing resources on the priorities of the people of Wales, and putting more cash into people’s pockets.”

A Reform UK Wales spokesperson said: “This is more evidence that a vote for Plaid next year is a vote for Labour. While Labour find themselves without a paddle, Plaid have stepped in yet again to save them.”

The government’s final budget for the 12 months from April will be published on January 20.

WALES’ top lawyer has vowed to challenge Ministry of Justice proposals to limit appeal rights and scrap jury trials for crimes with a likely sentence of three years or less.

Julie James, who is counsel general, the Welsh Government’s chief legal adviser, committed to raising concerns with UK counterparts because justice is largely non-devolved.

Last week, the Ministry of Justice unveiled plans for judge-only “swift courts” in Wales and England to fast track cases to cut delays due to a backlog in the justice system.

Answering questions in the Senedd today (December 9), Ms James agreed with her Labour colleague Mick Antoniw who described the plans as the “wrong way to go”.

The former solicitor said she would raise the issue during a meeting of the inter-ministerial group (IMG) on justice, a UK-wide forum which she was due to chair later in the week.

Mr Antoniw told the Senedd: “I think this is the wrong way to go and will not solve the growing backlog problem. Jury trials have been a cornerstone of our justice system.

“Juries are a check and balance on judges, as well as a protection for the independence of the judiciary, and they give ownership to part of the judicial system into the hands of the people, so we restrict them at our peril.”

Mr Antoniw, a former trade union lawyer and counsel general, urged his successor to press for access to justice, investment in court infrastructure and the devolution of justice powers.

Ms James responded: “I personally am particularly concerned about the proposals to limit the rights of appeal from magistrates’ courts to points of law only at the same time as increasing magistrates’ sentencing powers.

“So, there are a number of things in the system that we will be raising at the IMG and more generally. Because although it is a reserved matter, of course it directly impacts on a number of things that are devolved.”

Rhys ab Owen, a former criminal barrister who sits as an independent, pointed to previous comments from David Lammy, the Deputy Prime Minister and UK justice secretary.

He said: “’Jury trials are a fundamental part of the democratic settlement, criminal trials without juries are a bad idea… those aren’t my words – that’s a tweet written by David Lammy back in 2020.”

He argued the figures are skewed due to “huge” backlogs in big English cities.

Mr ab Owen was similarly concerned by proposals to limit rights of appeal as he recalled some “baffling” decisions made by magistrates.

He told Senedd Members: “The truth is if this was a proposal by a Conservative government, there would be outrage in this place.”

Mr ab Owen also raised comments from Karl Turner, a Labour MP, who described the proposals as the “daftest idea” that any justice secretary could have come up with.

Pressed on whether she agreed, Ms James said: “I agree that there are serious questions to be asked about the UK Government’s proposals… I also agree the right to trial by jury is a hugely important protection for defendants, I absolutely do.

“Victims need to be assured that justice is delivered effectively but in an unbiased way, and that the punishment fits the crime.”

She stressed that trial delays also impact victims, defendants and witnesses, so “it’s absolutely right to look at ways of speeding up that process”.

Ms James told Senedd Members there are no significant delays in magistrates’ courts and crown court performance in Wales has consistently been considered among the best.

She explained trials in Wales are currently being listed into 2026 and 2027, compared with London where listings are currently well into 2030.

Criticising a “disappointing” lack of consultation before the announcement, the counsel general said: “These are proposals at the moment, there’s a long way until they become law [but] we will be making our feelings known on it.”

PEMBROKESHIRE councillors are being asked to back major potential changes to school provision in the south of the county which could see multiple schools discontinued, along with the potential establishment of new 3-19 and 3-11 schools.

At Pembrokeshire County Council’s full council meeting of December 12, a recommendation before members asks that the Director of Education be authorised to undertake a public consultation on establishing a new 3-19 school, on a split site initially, but as part of a future investment to rebuild/extend Tenby’s Ysgol Greenhill site, or on a new site.

As part of that it also recommends Tenby Church in Wales Voluntary Controlled School and Ysgol Greenhill are discontinued.

A second part of the series of recommendations is a call to establish a new 3-11 primary school on the Saundersfoot School site “that encompasses the catchment of Saundersfoot and the catchment of Stepaside and Kilgetty, discontinuing Saundersfoot School and Stepaside school”.

A report for members says: “At a meeting of Cabinet on November 3, cabinet resolved that the [schools] Modernisation Working Group be requested to determine the final preferred outcomes in relation to the Tenby Area and that those recommendations be presented to full council in December 2025.”

It adds: “There are 534 surplus places in the primary sector in the Tenby area. There are 341 surplus places in the secondary sector in Greenhill School. Welsh Government does not set a fixed percentage or number of surplus places for schools, but there is guidance in the School Organisation Code and related documents.

“Surplus places should be minimised to ensure efficient use of resources and value for money. Historically, Welsh Government has considered 10 per cent surplus capacity as a reasonable planning margin for flexibility. When surplus places exceed 25 per cent, local authorities are expected to review provision and consider reorganisation or alternative use of space.

“In the Welsh context there are approximately 17 per cent surplus places in primary schools and 18 per cent in secondary schools. The Tenby area is 10 per cent above this in the primary phase at 27 per cent, and 10 per cent above in the secondary phase at 28.6 per cent”

In the case of Tenby Church in Wales VC it says the school has a surplus capacity of 38.1 per cent in 2025, and over a 25 per cent level for at least four years.

For Ysgol Greenhill it says the 1,194-pupil-capacity school has 877 pupils as of 2025, 28.5 per cent surplus places.

In the case of Saundersfoot Community Primary School, which has a capacity of 280 places, it says numbers were down to 151 by 2025, creating a surplus of almost half its capacity, (49.2 per cent).

For Stepaside, it says: “By 2025, enrolment is projected at 107, creating 101 surplus places—over half of the school’s capacity (50.5 per cent).”

The recommendations “to meet the council’s responsibility towards the planning of school places and ensuring a sustainable school estate to address the surplus places in the Tenby Area,” which will need public consultations, will be debated by members.

The meeting also includes two petitions opposing the potential closure of Manorbier and Ysgol Clydau, Tegryn, schools, after consultations on their futures were previously backed by councillors.