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Senedd approves Welsh budget after Labour–Plaid deal

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Extra cash for councils and NHS secures passage, but education leaders say Wales’ schools remain in ‘damage control’

THE SENEDD has approved the Welsh Government’s £27.5bn budget for 2026 after Welsh Labour struck a deal with Plaid Cymru, unlocking extra funding for local authorities, the health service and future infrastructure projects.

The final spending plans were passed on Tuesday evening (Jan 27) following a fractious debate in Cardiff Bay, with Labour ministers dependent on Plaid Cymru support after the party was left two seats short of an overall majority following the Caerphilly by-election last autumn.

Finance Secretary Mark Drakeford said the budget would deliver “security and stability” for public services, while opposition parties and education leaders warned that the settlement falls short of what is needed to protect schools and other frontline services.

Minority government arithmetic

Labour’s minority position transformed the budget process this year, forcing ministers into negotiations with opposition parties to avoid automatic cuts that would have followed a failure to pass spending plans.

Although talks were held with the Welsh Conservatives, it was Plaid Cymru that agreed to allow the budget to pass, with a deal reached shortly before the Christmas recess.

That agreement delivered additional funding for councils and the NHS, alongside £120m earmarked for future capital investment. The one-off infrastructure pot—described by one source at the time as a “golden egg”—will be available to the next Welsh Government to spend on new buildings, roads and other projects after the Senedd election in May.

The final budget marked an improvement on the Welsh Government’s original autumn proposals, which had prompted warnings of potential cuts to councils and health services. Drakeford had indicated he was prepared to find extra funding for both, a commitment that materialised once the deal was secured.

‘Security and stability’

Addressing the Senedd, Drakeford said the budget reflected the priorities of a progressive Labour administration.

“It provides security and stability for our public services, those who work in them, and even more so for those who rely upon them,” he told Members.

Plaid Cymru’s finance spokesperson Heledd Fychan said her party’s decision to support the budget was about preventing immediate harm, rather than endorsing Labour’s wider record. She said Plaid would bring forward its own budget within the first 100 days of the next Senedd term should it form the next Welsh Government.

Schools ‘in damage control’

However, education leaders warned that the settlement fails to confront what they describe as a deepening crisis in school funding.

Commenting after the vote, Laura Doel, national secretary of NAHT Cymru, said schools across Wales were already facing “desperate” financial pressures.

She warned that for many schools, even substantial cuts to staffing or resources would not be enough to prevent deficits, with an inevitable impact on pupils’ learning.

While welcoming the additional £113m agreed for councils following lobbying by unions and the Labour–Plaid deal, she said the figure still fell short of the scale of the problem.

The Welsh Local Government Association has predicted a £137m shortfall in school budgets next year, meaning that even if all the extra council funding were passed directly to schools, a significant gap would remain.

Doel said it was now vital that local authorities listened to school leaders and ensured the extra funding reached classrooms, describing the situation as “damage control” rather than genuine recovery. She also urged all political parties to address school funding head-on in their manifestos ahead of the Senedd election.

Opposition attacks

The Welsh Conservatives criticised the budget for failing to include tax cuts. Conservative MS Sam Rowlands argued that a one-penny cut to the basic rate of income tax would have saved families nearly £500 a year.

The Welsh Liberal Democrats also declined to back the budget, but chose to abstain. Party leader Jane Dodds said voting down the plans would have triggered damaging cuts to essential services, while warning that the budget missed an opportunity to set out a clear long-term plan to save the NHS.

Reform UK’s Laura Anne Jones was more scathing, branding the package “a zombie retirement budget from a dead-in-the-water government” and arguing that inflation and pay pressures would swallow much of the headline increase.

Vote ahead of election

The budget passed with 25 Members voting in favour, 13 against and 14 abstentions, highlighting the finely balanced politics of the current Senedd as Wales heads towards a May election.

With spending plans now agreed, scrutiny is expected to focus on how the additional funding is distributed on the ground—particularly whether councils channel extra resources into schools—as parties set out competing visions for the future of Welsh public services.

 

Local Government

Security privately arranged by Mayor at Beating of the Bounds

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HAVERFORDWEST TOWN COUNCIL has confirmed that security personnel seen at this year’s Beating of the Bounds were privately arranged and paid for by the town’s Mayor.

The council issued a statement on Tuesday (June 16) following queries about the presence of security staff at the civic event.

It confirmed that the arrangements were made by the Mayor and Admiral of the Port, Councillor Randell Thomas-Turner, and were not commissioned by the council.

The statement said the decision was taken by the Mayor as a personal precaution in response to safety concerns connected with his role as a councillor.

NO SPECIFIC THREAT

The council stressed that the presence of security personnel should not be interpreted as an indication of any specific threat to the event, participants, or members of the public.

It added that the event “proceeded safely and successfully” and that there were no incidents of concern during the day.

The Beating of the Bounds is one of Haverfordwest’s oldest civic traditions, with the Mayor and Sheriff travelling to the White Stone, the historic boundary marker of the Port of Haverfordwest, to reaffirm the ancient boundaries and rights of the town.

Hundreds of people attended this year’s event, which included a flotilla, music, entertainment, stalls and family activities along the riverside.

COUNCIL CONDEMNS ABUSE

In its statement, the council said it remained committed to ensuring civic events were “welcoming, inclusive and family-friendly” occasions.

It said appropriate planning and risk management arrangements were undertaken for all public events so residents and visitors could attend with confidence.

The council added: “While the security arrangements were a personal matter for the Mayor, the council recognises the importance of supporting the wellbeing and safety of all elected members and staff.

“The council condemns all forms of abuse, intimidation and threatening behaviour directed towards those serving their communities.

“Respectful public discourse is fundamental to local democracy, but there is no place for conduct that seeks to harass, threaten or intimidate others.”

The council thanked everyone who attended and contributed to what it described as another successful Beating of the Bounds, celebrating Haverfordwest’s history, traditions and community spirit.

 

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Local Government

Major improvement works completed at Fleming Crescent

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NEW roofs, structural upgrades and solar panels have been installed across three residential blocks at Fleming Crescent as part of a major housing improvement scheme.

Pembrokeshire County Council said the project has delivered safer, warmer and more energy-efficient homes for residents, with the full replacement of roofs serving 54 flats.

The works also included structural improvements designed to support the long-term performance of the buildings, alongside the installation of solar panels to help improve energy efficiency, reduce carbon emissions and lower energy costs for tenants.

The council received a funding contribution from the Welsh Government through the Optimised Retrofit Programme, which supports energy-efficiency improvements alongside wider investment works.

The scheme was completed on schedule, with W B Griffiths & Son Ltd appointed as the main contractor.

Cabinet Member for Housing, Cllr Michelle Bateman said: “Delivering a project of this scale on schedule is a significant achievement.

“The new roofs and external upgrades will help reduce future maintenance issues and improve the long-term resilience of the buildings, while the solar panels form an important part of our wider decarbonisation programme.

“By working closely with W B Griffiths & Son Ltd, we have delivered high-quality improvements that will benefit tenants both now and in the future.

“Pembrokeshire County Council continues to invest in housing improvements across the county, ensuring homes remain safe, modern, energy efficient and fit for the future.”

The project has also received national recognition after being shortlisted for a Constructing Excellence in Wales Award.

Neil Griffiths, Managing Director of W B Griffiths & Son Ltd, said: “We are proud to have delivered this important project at Fleming Crescent to a high standard and within the agreed timescales.

“The combination of full roof replacement and solar panel installation will provide long-term value, improve the performance of the buildings and support better outcomes for residents.

“It has been a pleasure to work in partnership with Pembrokeshire County Council on this scheme.”

 

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Tenby lifeboat tows yacht to safety after skipper falls ill near Caldey

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A YACHT was towed back to Tenby after its skipper became unwell off Caldey Island.

Tenby’s all-weather lifeboat was requested to launch at 1:40pm on Monday (Jun 15), after the coastguard received a call from the occupants of a yacht reporting that the skipper had become ill around one mile south of Caldey Island.

The volunteer crew quickly made their way to the vessel, which had three people and a dog on board.

Once alongside, the lifeboat crew discovered that the skipper was suffering badly from seasickness and that the other two people on board were unable to sail the yacht themselves.

After a full assessment by the coxswain, it was decided that the safest course of action was to tow the yacht back to Tenby. The vessel was drifting with the tide towards Caldey Island and was also considered a potential navigational hazard to other boats.

Two lifeboat crew members were placed aboard the yacht to help set up the tow and to monitor the unwell skipper during the journey back.

After a tow of around an hour, the yacht was placed on the lifeboat mooring in the calmer waters of North Bay.

The lifeboat then returned to station, arriving back at 3:15pm.

 

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