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Labour and Plaid Cymru strike £300m budget deal

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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.

Plaid Cymru MS Heledd Fychan
Plaid Cymru MS Heledd Fychan

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”.

Conservative MS Darren Millar
Welsh Conservative leader Darren Millar

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.

 

Health

Plaid Cymru to hold public meeting over Withybush hospital surgery cuts

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Candidates say residents must be heard after emergency services decision

PLAID CYMRU candidates for the Ceredigion Penfro constituency will host a public meeting in Pembrokeshire to discuss concerns over the future of services at Withybush Hospital.

The event will take place at 6:30pm on Monday (Mar 31) at Letterston Village Hall, giving residents the opportunity to share their experiences and concerns following Hywel Dda University Health Board’s decision last month to remove emergency general surgery from the hospital.

Campaigners say the move will force many patients requiring urgent treatment to travel further for care, raising fears about the potential impact on patient safety in rural west Wales.

Elin Jones, Plaid Cymru lead candidate for Ceredigion Penfro, said: “Withybush is such an important hospital for the community and residents of Pembrokeshire. The decision to remove its emergency general surgery will severely weaken the life-saving capacity of this hospital.

“Plaid Cymru has long championed small rural hospitals such as Bronglais and Withybush. We need to ensure these hospitals remain strong local services within our communities. Withybush should have the basic life-saving and everyday treatment services it needs to function as a full general hospital.”

Kerry Ferguson, Plaid Cymru candidate for Pembrokeshire within the Ceredigion Penfro constituency, said the recent success of a public petition had demonstrated the strength of local feeling.

“It’s great to see that the online petition calling for Welsh Government intervention to restore emergency surgery and essential services at Withybush has reached its target, meaning it will now be debated in the Senedd,” she said.

“We are extremely disappointed by the Health Board’s decision to remove emergency general surgery at Withybush. Increased journey times for anyone in need of urgent medical treatment will put lives at risk. We need government intervention now to overturn this decision.”

Residents across Pembrokeshire have continued to raise concerns about the future of services at the hospital, which has long been a focal point in debates about healthcare provision in rural west Wales.

 

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Health

Politicians seek legal advice over hospital decisions as petition passes 11,000 signatures

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PEMBROKESHIRE’S two Members of the Senedd have written jointly to the Welsh Government’s Counsel General seeking legal advice on possible ways to challenge decisions made by Hywel Dda University Health Board affecting healthcare services in the county.

Paul Davies MS and Samuel Kurtz MS have asked the Counsel General, Julie James MS, to outline what legal mechanisms may exist to scrutinise or challenge the health board’s decision-making process, particularly in relation to changes impacting services at Withybush Hospital.

Their move comes amid growing concern from residents, clinicians and community groups about the impact of service changes on patient safety and access to care, especially in a rural county where travel times to alternative hospitals can be significant.

Public concern has also been reflected in a petition calling for intervention over the future of services at Withybush Hospital. The petition has now attracted more than 11,000 signatures and continues to gain support.

Having passed the required threshold, the petition can now be considered for debate in Senedd Cymru.

The two MSs say the level of public backing highlights the strength of feeling locally and the need for greater scrutiny of decisions being taken about healthcare provision.

Paul Davies MS said: “Residents across Pembrokeshire are deeply concerned about the cumulative impact that changes to healthcare services could have on patient safety and access to care in a rural area. The fact that more than 11,000 people have signed the petition highlights just how strongly people feel about this issue.”

Samuel Kurtz MS added: “People deserve confidence that decisions affecting vital healthcare services have been taken properly and with full consideration of the impact on local communities. We have therefore written to the Counsel General to seek advice on what legal avenues may exist to challenge these decisions and what powers the Welsh Government has to intervene where serious concerns have been raised.”

The MSs have also asked the Welsh Government to clarify what role it can play in reviewing or intervening where there are significant concerns about the governance and decision-making processes of a health board.

 

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Health

Welsh Ambulance Service to host bi-monthly Board meeting

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THE WELSH AMBULANCE SERVICE is preparing to host its bi-monthly Board meeting – and the public are invited.

Join the meeting on Thursday 26 March via Microsoft Teams to hear senior leaders cover a full agenda, including approval of the Integrated Medium-Term Plan for 2026-29, which outlines what the organisation will prioritise and deliver, how it will use its resources and how it will continue to improve care for the people of Wales over the next three years.

Board members will approve the initial revenue budget for the year ahead and receive an update on current financial performance.

The Board will also hear from Mr Clarke from Cwmbran, who describes an experience of trying to access help via 999 for his late father who was terminally ill.

There will also be an opportunity to pose a question to the Board.

Chair Colin Dennis said: “Board meetings give you the opportunity to really get to know our ambulance service, with a clear view of how important decisions are shaped and the processes behind them.

“They also create a forum to hear directly about ongoing work, explore how we can strengthen support for the Trust’s staff and patients, and connect with the people responsible for shaping those decisions.”

Click here to watch the Board meeting on Thursday 26 March 2026 from 9.30am.

This link will be active from 10 minutes before the meeting starts.

To pre-submit a question, please email [email protected] by no later than Wednesday 25 March 2026.An agenda will be available on the Trust’s website in the days prior to the meeting.

 

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