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Politics

​​Budget agreement could be the last​

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Deal secures whole of budget: Mark Drakeford

THE WELSH GOVERNMENT and Plaid Cymru have agreed a ​two-year, £210m Budget agreement.

The deal includes ensuring no cuts to the Supporting People grant​,​ £15m to improve vital north and south links on the A487 and A470​,​ and a £40m boost for mental health funding over ​two years.

There is an extra £20m-a-year for higher and further education and £6m for a young farmers’ grant scheme over ​two years.

There is additional funding for the Welsh language; for Wales to deal with the impact of Brexit, including support for businesses and for music in schools. The agreement builds on the one struck between the Welsh Government and Plaid Cymru last year.

It also includes:

  • ​A £7m development fund for undergraduate medical training in North Wales
  • £2m to remove the tolls on the Cleddau bridge in Pembrokeshire in 2019-20
  • £3m to support the design and development of a third Menai bridge crossing
  • ​A further £2m for the secretariat and investment support for a new ‘Arfor’ economic region in west Wales

Welsh Government Finance Secretary Mark Drakeford said: “We are pleased we have been able to agree this ​two-year deal with Plaid Cymru, which secures the whole of our Budget.

“This agreement builds on the one reached between the Welsh Government and Plaid Cymru last year and includes a series of recurrent allocations for the Welsh language, arts, end-of-life-care, mental health, higher education and Visit Wales.

“We have also been able to agree capital funding to take forward the new integrated healthcare centre in Cardigan and the results of the feasibility studies into a national art gallery and football museum in North Wales, which were agreed as part of last year’s agreement.”

Adam Price, Plaid Cymru’s spokesperson for finance, business and the economy, said: “This is a Budget Agreement that will deliver for people and communities in all parts of Wales.

“It protects the vulnerable, invests in our young, and innovates for all our futures. This is a pan-Wales budget agreement, from the Cleddau to the Menai from Wrexham to the Rhondda, from culture to agriculture, from energy and transport to education and health – new ideas for a new Wales.”

In an effort to deflect from the idea that Labour had made concessions to Plaid Cymru, and after the announcement of the Budget agreement, Finance Secretary Mark Drakeford said in a BBC Wales interview that there was nothing in the Budget that Labour would not have delivered and that Plaid’s support was a matter of Assembly arithmetic.

And if that appeared more than a tad graceless, the brittle nature of any accord was underlined when Adam Price pointed out that Plaid had not managed to obtain everything it had wanted, including an agreement on tuition fees and public sector pay, and commented: “This is Labour’s budget and it will have to answer to the people of Wales as to why it is failing to deliver on its manifesto commitments such as lifting the pay cap and stopping the rise in tuition fees.

“Plaid Cymru secured a deal that would deliver benefits to communities in every part of Wales. Our budget deal will mean investment in the things that matter to people, including employing 80 new district nurses, £40m for improving mental health services, an additional £40m for our universities and colleges, a Brexit Preparedness Fund for businesses, a young farmers’ entrant’s scheme and a major £3​m investment in a power station for our steel industry.

“But we are frustrated that the Labour government failed to implement important policy matters such as the pay cap and rising tuition fees, particularly as they were commitments made in Labour’s 2017 manifesto. Indeed, what is not included in this budget has made the void between Plaid Cymru and Labour more and more apparent and has made future co-operation between the parties more and more unlikely.

“We will be robustly scrutinising the details of this budget when they are announced, and we will hold the Labour government to account on the decisions it takes.”

The Conservative Party in Wales attacked the agreement.

Andrew RT Davies, said: “This budget deal is the latest charade in the Plaid-Labour love-affair and significantly sees both parties break a number of election promises to the people of Wales.

“Despite the well-publicised vows to the electorate only three months ago and being in government in Wales, the Labour Party has once again failed to take any action on public sector pay or tuition fees.”

All in all, the draft Budget seems to be a document with few close friends, even among those responsible for its content; while the Conservatives are yet to put forward any positive alternatives instead of criticising from the side-lines and carping at Plaid Cymru.

Margaret Thomas, UNISON Cymru Wales Secretary, said: “The Welsh Government is being creative in their budgeting in order to protect public services across Wales.

“UNISON welcomes the additional funding for the NHS in Wales, as well as the pledge to build more affordable homes.

“We are also pleased to hear plans around additional childcare. The majority of UNISON members are women, many work part-time, and we know women still fulfil most of the child care responsibilities in the home – so this will hopefully be of great benefit to them.

“We also recognise the Cabinet Secretary’s attempt to protect Welsh local government budgets and offer a more favourable settlement than in England.

“But the point must be made that this innovative budgeting will not protect our essential public services from further drastic UK government imposed cuts to the Welsh Government block grant, anticipated in their Autumn Statement.

“This budget comes at a time of unprecedented austerity. Public services should be properly invested in, and Wales deserves to be properly funded.​ ​The fact also remains that public sector workers across Wales, and the rest of the UK, have already suffered ​seven, long​,​ hard years of pay restraint.”

News

Welsh Conservatives congratulate Trump amid growing backlash in Wales

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THE WELSH CONSERVATIVES have extended their congratulations to President Donald J. Trump ahead of his inauguration, with Darren Millar MS urging the Welsh Labour Government to strengthen ties with the United States. The announcement has sparked controversy, with anti-racism campaigners demanding a retraction of comments made by Welsh First Minister Eluned Morgan defending Trump.

Conservative endorsement

Darren Millar MS, leader of the Welsh Conservatives, stated: “I would like to extend my congratulations to President Trump on his inauguration. His return to the White House signals a conservative resurgence on the other side of the Atlantic which is welcome.”

Millar criticised Labour for what he described as undermining the UK’s “special relationship” with the US, pointing to Labour activists’ anti-Trump stance and the absence of the Prime Minister at the inauguration.

He added:
“In the interests of global peace, trade links, and economic development, deepening our ties with the incoming administration will be paramount.”

Backlash from anti-racism groups

Millar’s remarks coincide with growing calls for First Minister Eluned Morgan to apologise for comments made in November, where she expressed doubt about Trump’s alleged racism. During a BBC interview, Morgan remarked:
“I shouldn’t think he is, to be honest. There were a hell of a lot of black people and Latinos who voted for him in the election.”

This has sparked criticism from Welsh anti-racism groups, including Stand Up To Racism, Black Lives Matter, and MEND. In an open letter signed by nearly 100 campaigners, the groups condemned Morgan’s comments as “reckless,” accusing her of downplaying Trump’s history of inflammatory rhetoric.

Hussein Said, Chair of Stand Up To Racism Cardiff, stated:
“To dismiss the racism of Trump is to ignore the very real ways in which he emboldens far-right and fascist figures here in the UK. The Islamophobia and anti-migrant rhetoric they use should never be legitimised.”

The letter also highlighted Trump’s divisive policies, such as the Muslim travel ban and mass deportation plans, which they argue are antithetical to human rights.

Royal visit speculation

Meanwhile, Downing Street has hinted at a possible royal visit to the US to cement the UK-US “special relationship.” A government source said:
“Donald Trump has a clear affinity for the royal family. A royal tour to the US would help reinforce the special relationship.”

The meeting could coincide with America’s 250th Independence Day celebrations, where Trump has pledged to host “the best of all time” events.

Divided opinions in Wales

Trump’s inauguration has reignited debates in Wales over the UK’s relationship with the US under his leadership. While some, like Millar, see an opportunity to rebuild transatlantic ties, others warn against legitimising what they view as a divisive and dangerous administration.

The Herald will continue to follow the implications of these developments for Wales.

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News

Senedd debates UK Government’s ‘disastrous’ first six months

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THE CONSERVATIVES criticised the UK Government’s record six months on from the general election, accusing Labour of doing “not a dickie bird” to stand up for Wales.

Darren Millar, leader of the Tories in the Senedd, said people were told Labour governments at both ends of the M4 would be great for Wales in the run up to July’s election.

But he warned: “What we’ve actually ended up with is a double whammy: broken promises and failing policies … alongside a passive, silent Labour Welsh Government unwilling to offer a squeak of criticism or lift a finger to defend the interests of the people of Wales.”

Leading a Tory debate, he said the new UK Government has hit farmers with inheritance tax, taken winter fuel allowance from pensioners and hiked national insurance for businesses. 

Mr Millar told the Senedd that Welsh railways remain underfunded as he accused Labour of settling for “scraps” despite previously calling for billions of pounds from HS2.

Peter Fox, the Tory shadow rural affairs secretary, warned farmers have to deal with Labour governments “who either do not care or do not understand the needs of rural communities”. 

Mr Fox, a farmer and former council leader who represented Monmouth since 2021, criticised changes to agricultural property relief by the UK Government.

“It’s not a loophole,” he said. “It’s a carefully designed policy … to protect Britain’s family farms from being broken up.”

His colleague Natasha Asghar, who represents South Wales East, described a -45% approval rating for Keir Starmer’s government as “a tad generous”.

She said: “If this is just what the first six months of Sir Keir’s premiership look like, I sincerely dread to imagine what the next six months have in store for all of us.”

Mark Drakeford said the Conservative motion in front of the Senedd concentrated entirely on matters outside the Welsh Parliament’s responsibility.

Following the debate on January 15, Senedd members voted 26-24 against the motion with Labour’s amended version agreed by the same margin.

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News

Welsh Government ‘in the dark’ on £109m tax rise cash

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THE WELSH GOVERNMENT remains in the dark about how much Wales will receive to cover the estimated £109m cost of tax rises in the public sector, a committee heard.

Jayne Bryant said the UK Government has confirmed it will provide funding to public-sector employers towards the increased cost of national insurance contributions from April.

But Wales’ local government secretary said ministers expect to receive additional funding in ‘late spring’ and have not yet received confirmation of how much Wales will receive.

Plaid Cymru’s Siân Gwenllian raised concerns about the impact of tax hikes as the Senedd’s local government committee scrutinised Welsh ministers’ 2025/26 spending plans.

Judith Cole, deputy director of council finance policy, said the Welsh Government estimates the cost of the tax hike to the public sector in Wales at £109m.

Asked how funding will be divided between councils, Ms Cole said the standard funding formula could be used or it may be based on a proportion of spending as in England.

But she stressed that other factors need to be taken into account because, for example, some councils will provide more services by directly employed staff.

Reg Kilpatrick, director of local government, added: “We’re entirely dependent on the negotiations between the cabinet secretary for finance and the UK treasury.”

Ms Gwenllian warned of the impact of tax hikes on the voluntary sector and outsourced services, piling more pressure on council budgets.

She said: “I’ve spoken with three councils … but one said that this will cost an additional £2m in terms of internal salaries but £2.5m in terms of the work that is commissioned.

“Another council said £5.4m on the internal, £2.8m on the work that is outsourced – another said £8m internal and £3m on the outsourced work. There is a lot of work commissioned beyond the local authorities themselves and there is no mention of any support.”

Giving evidence on January 15, Ms Bryant said the UK Government has confirmed it will use the Office for National Statistics definition of a public sector worker.

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