Labour, Reform UK, the Conservatives and Liberal Democrats unite against Plaid Cymru after row over additional learning needs funding

THE NEW Plaid Cymru government faced its first major political defeat on Tuesday when its supplementary budget was rejected by the Senedd.

Labour voted alongside Reform UK, the Welsh Conservatives and the Liberal Democrats against the government following a row over spending for children with additional learning needs (ALN).

The supplementary budget was published in late June and included almost £300 million of additional funding. It would have allocated an extra £145 million to NHS Wales, £40 million to improve school buildings and £20 million to increase the stock of social housing.

However, the government does not have a majority of MSs in the Senedd. This meant that, to pass the budget, Plaid Cymru needed to secure support from other parties. Although it gained the backing of the two Green MSs, this was not enough when the vote took place on Tuesday.

The government lost the vote by 49 votes to 44.

Welsh Conservative leader Darren Millar called it “bonkers” to bring the budget to a vote without securing the necessary support, knowing that the Senedd was likely to reject the proposals.

The Welsh Conservatives, Welsh Labour, the Liberal Democrats and Reform UK all voted together to defeat the budget.

It was the first Welsh government budget, supplementary or otherwise, to be voted down in the history of the Senedd, showing just how divided Welsh politics has become.

So why did this happen?

Most importantly, Labour had demanded that an extra £100 million be spent on ALN by next April.

The party claimed the money could have come from £340 million allocated to Wales following increased UK Government spending on special educational needs and disabilities in England.

However, Plaid Cymru failed to meet these demands in full, offering an extra £40 million this year and proposing to increase funding by the same amount over the following two years.

If maintained, this would have resulted in £120 million of additional funding over three years, £20 million more than Labour was asking for, but spread across a longer period.

Labour was not satisfied with this offer and voted against the budget, securing its defeat and refusing to support Plaid Cymru’s proposed compromise.

New Welsh Labour leader Ken Skates had urged Plaid Cymru to withdraw the budget and bring it back during the summer recess once a deal had been agreed.

Mr Skates defended Labour’s decision to vote against the package, saying: “What Plaid were asking for was for us to compromise on what’s best for children.”

A joint statement from Welsh Labour local authority leaders also criticised the Welsh Government for implying that there would be no additional funding for ALN if the budget was not passed.

That was the message First Minister Rhun ap Iorwerth appeared to give on Tuesday when he said the Welsh Government’s proposed funding for ALN “would not be possible” if the budget was voted down.

Labour warned that this would have “real consequences” for some of the most vulnerable young people in Wales.

The government has also faced criticism from the NAHT and ASCL teaching unions, which have launched a trade dispute over dissatisfaction with a proposed teacher pay award and what they described as a “failure to adequately fund schools” dealing with increasing numbers of pupils with ALN.

However, by voting down the budget, opposition parties have rejected Plaid Cymru’s compromise and potentially delayed any agreement until the autumn, increasing the pressure already faced by schools.

Although existing ALN funding has not been paused, progress towards increasing it has now been significantly delayed.

The defeat also means that the wider NHS and education funding package, which Mr Skates had described as “welcome”, will not be passed in its current form because the measures were presented as one complete supplementary budget.

This means that the row over ALN has also had a knock-on effect on proposed funding for the NHS, school buildings and social housing.

In response to the defeat, the Welsh Government told The Pembrokeshire Herald that it was “committed to supporting children and young people with additional learning needs”.

It defended its position by arguing that the funding allocated to Wales following the UK Government’s SEND spending decisions was intended to help write off historic local authority debts relating to ALN, rather than pay directly for services.

Plaid Cymru’s Finance Minister, Elin Jones, accused Labour of acting as a “destructive opposition” by refusing to vote the budget through.

However, the government restated its commitment to developing a “sustainable, long-term solution” for ALN.

Details of what this package might look like remain unclear, particularly given the increased pressure on Plaid Cymru to secure the support of other parties.

The Senedd’s sole Liberal Democrat MS, Jane Dodds, also voted against the budget.

She said the proposals failed to meet her demands for increased funding for healthcare in Powys hospitals and for patients receiving treatment across the border in England.

Reform UK also voted against the supplementary budget because it failed to meet the party’s red lines, according to spokesperson Cai Parry-Jones.

These included stopping overseas spending, guaranteeing jobs for all newly qualified student nurses and midwives, and making further commitments on ALN funding.

Reform’s Welsh leader used the defeat as an opportunity to declare that “Plaid Cymru cannot govern this country”.

This was Reform UK’s first major opportunity to demonstrate its new influence in the Senedd as the second-largest party, and it did so during an historic vote.

It was the first time a Welsh government budget had been rejected by the Senedd, only months after a century of Welsh Labour dominance was brought to an end.

What happens next?

What happens next remains unclear.

If an agreement can be reached, the Senedd could return during the summer recess to vote on a revised budget.

However, it may not be until the autumn that a workable funding package is agreed.

This means that additional ALN funding will not arrive for the time being, while the wider spending promised for the NHS, schools and housing will also be delayed.

All opposition parties have criticised the Welsh Government for failing to properly engage with them and negotiate a deal before bringing the budget to a vote.

Given the historic nature of Tuesday’s defeat, it is clear that something went wrong in the operation of the new government.

That is why the First Minister has promised an “even more cooperative approach”, something that will be essential if Plaid Cymru is to deliver the change it promised the people of Wales in May.

PEMBROKESHIRE’S leader is to write to Welsh Government to push for a review of the contentious 182-day rule for self-catering holiday properties which otherwise have to pay second homes tax.

Self-catering businesses not meeting the 182-day criteria end up paying the second homes council tax premium, currently 125 per cent on top of the general rate, in the county, along with similar premiums for the other elements of the overall bill such as the police precept.

In a submitted question heard at the July 16 meeting of Pembrokeshire County Council, Cllr Huw Murphy asked: “Most councillors are aware that much of Pembrokeshire relies on tourism and hospitality for its economic success. A key element of a successful Pembrokeshire tourism industry is the self-catering sector.

“Plaid Cymru in its manifesto made several pledges for its first 100 days in office, one under the headline of ‘Unleashing Wales Economic Potential’ which made no specific mention of the 182 letting day rule that was introduced by the previous Labour Government under their co-operation agreement with Plaid Cymru.

“However, Plaid Cymru prior to Senedd elections in May 2026, stated that they would review the 182-day threshold which has been a disaster for many self-catering businesses, many of whom are in rural and coastal communities. I have raised this matter on several occasions since being elected.

“Through speaking to those operating in the self-catering sector there is a clear need to reduce the 182-day threshold. I should point out that in the past I have suggested it be reduced to 140 days and still hold that view.

“Over 50 days have now passed since the Senedd Elections, but we have not heard any details of a review of the 182-day letting rule.

“Therefore, will the Leader [Cllr Tessa Hodgson] write off to the First Minister outlining the concerns of many Pembrokeshire county councillors with regards to the 182 days letting rule and ask for a reply setting out when Welsh Government intend to commence a review of this policy, which is much needed?”

Responding to the submitted question, Cllr Hodgson said she was happy to write a letter pressing the issue, adding she understood a Welsh Government review was expected, but was not aware of the timeframe for that at the current moment.

Cllr Murphy said, since his submitted question was publicised, he had been “inundated with emails” from constituents, “confirming the urgency” of a review.

Back in 2023, Cllr Murphy submitted an unsuccessful notice of motion to full council calling for the 182-day rule in Pembrokeshire to be lowered, proposing a figure of 140 days.

At the time of the 2023 call it was instead agreed to review the situation and for the council to raise its concerns to Welsh Government.

SENEDD Members clashed over plans to review Wales’ funding formula, following the Welsh Government’s defeat in its pursuit of change.

Constitution minister Dafydd Trystan Davies defended the Welsh Government’s stance amid Reform calls for the plans to be abandoned.

On Tuesday July 14, Reform’s Cai Parry-Jones said Plaid Cymru had experienced a “crushing defeat” last week when they were “refused” permission from the Senedd to argue for a different funding model for Wales.

He said: “Reform, with the support of Labour and the Conservatives, potentially saved £1.5 billion annually for the Welsh Government’s budget. You’re welcome.

“Now that the Senedd has spoken, will you abandon your plans to argue for a change for the funding model for Wales?”

Responding with a simple “no”, Dr Trystan Davies said: “What has become very clear in assessing the financial situation facing Wales is that we need fair funding for Wales and funding that reflects the needs of the population. Wales has nothing to fear from a review of that kind.”

Reform’s shadow finance and government efficiency minister pointed to Plaid’s manifesto promises – much of which Mr Parry-Jones described having “hinged on an optimistic change of the funding model”.

He said: “Now that the Senedd has rejected your calls to change the funding model, what changes have you made to your programme for government?”

Dr Trystan Davies responded: “I hope that colleagues across this Senedd will work to ensure that the Welsh Government and the public sector in Wales work at their most effective and that we, over the next four years, can identify more funding that can be invested in the priorities of the people, to support childcare, to support the economy, to support the health service.”

Huw Thomas – Labour’s spokesperson for finance and democracy – questioned the minister on Plaid’s funding formula review.

The former Cardiff Council leader revealed he had received a written response from local government minister Sian Gwenllian, who said that as part of the government’s funding formula review it is “reviewing the data on primary indicators” such as “those relating to deprivation and sparsity of population”.

Mr Thomas said there are “huge concerns” in parts of Wales that Plaid will “copy what Rishi Sunak did in England and redistribute funding via the funding formula away from poorer urban areas towards relatively wealthier rural ones.”

The Caerdydd Penarth MS asked the minister what issues he has identified in the “underlying data and indicators” that have prompted this review.

In response, Dr Trystan Davies said: “As with all official statistics, the government keeps a close eye on the accuracy and effectiveness of that data to ensure that they are clearly and accurately reflected in the formulas.

“The spokesperson himself [Mr Thomas] comes from Aberystwyth and he knows full well that there are areas of significant poverty in rural Wales as well as industrial Wales.”

He continued: “Setting those communities against each other is a disappointing approach from the spokesperson, I would suggest.”

Mr Thomas noted in response that he “didn’t hear” the minister share “what figures had pushed [him] to hold that review.”

Calls for a Welsh Covid inquiry came from both the Reform and Conservative benches in Tuesday’s plenary.

Following his questions on Plaid Cymru’s plans to argue for a change to the funding model for Wales, Mr Parry-Jones pressed the minister to confirm what actions his government will take to bring about a Welsh Covid review.

He said: “Responding to the Covid inquiry’s fifth report today, the First Minister rather vaguely said that Plaid remains committed to reviewing the Wales Covid response.

“In March, Plaid said it would hold a short, sharp and focused review of the Welsh Government’s Covid response, a far cry from the full-fat all-Wales inquiry Plaid previously called for for years, including during your 2024 manifesto.

“Now, following that u-turn, nobody knows what your review actually is – not when it’s happening, not for how long, not even what elements of the Covid response it would focus on.

“Surely, Minister, now is the time to make it clear to bereaved families what actions exactly your government is going to take.”

Dr Trystan Davies said the government is committed to conducting a Covid review. He said: “That’s what we said in our manifesto and that’s what we intend to do.

“I’m pleased to say that I have already been in correspondence with the Covid Bereaved Families on our intentions and hope to arrange a meeting with them soon, because it’s important that the voices of those who have suffered are part of that discussion and feed in to the work of government.”

Andrew RT Davies, Welsh Conservative MS for Pen-y-Bont Bro Morgannwg, also pressed the minister on his inquiry plans.

Mr Davies said it was “vital” the government “sticks to their commitment” and “enacts a Covid inquiry – not a review”.

He called on the minister to confirm that “the government’s thinking, whatever emerges, will be set up under the Inquiries Act 2005, which would compel witnesses to come before that inquiry and give evidence”.

Dr Trystan Davies reiterated that work is “progressing” on the government’s Covid review and noted he will be “liaising closely” with the bereaved families.

The Conservative MS thanked the minister for his “warm words” but described the response as of “little substance”.

Mr Davies said: “The reality is that we found out, with the Covid committee that was set up in the previous Senedd term, that unless witnesses were compelled to give evidence, that committee was thwarted in its endeavours to get to the truth.

“Today, for example, the Covid inquiry reports that, on the FFP3 respirator masks that we were told Wales was well stocked with prior to the Covid pandemic in its emergency allocation, there wasn’t a single mask in Wales available for the health service to use.

“These are the things we need to get to the core of as to what was not provided, what was mislaid, what was deliberately not ordered to save money, and what was not acted on on the emergency planning trials that were held prior to the Covid pandemic.”

He called on the Welsh Government to “stick to your guns, stick to your morals, stick to the votes that you made prior to the Senedd election and have a full-blown inquiry that gets to the truth and, ultimately, prepares Wales for any future pandemic.”

Responding, Dr Trystan Davies said: “Reading the most recent module report on Covid brings home the sobering impact of Covid right across this country.

“Those lessons must be learnt, and the review that we are committed to undertaking must have the ability to address those precise issues that you have set out and that is what we will seek to do.”