FINAL Budget plans worth £27.5bn for 2026-27 have been published by the Welsh Government, with ministers saying the package will deliver £1.2bn more for people, public services and businesses than in the current financial year.

The Welsh Government said the Final Budget includes £400m of new allocations since the Draft Budget was set out in October, including £300m of revenue funding for local government and the NHS, secured through the budget agreement between Labour and Plaid Cymru.

A further £100m in revenue and capital funding is earmarked for priorities including bus services, apprenticeships, further education, flood prevention and maintenance of school buildings.

Ministers said every Welsh Government department will receive at least the same level of funding in real terms in 2026-27 as this year, with uplifts for inflation and pay intended to help protect frontline services and safeguard jobs.

Key allocations highlighted in the announcement include an extra £112.8m for local government, with all councils set to receive increases of four per cent or above, and a further £180m for health and social care, bringing the total revenue budget for the sector to more than £12.6bn.

A £116m package of support for businesses over two years has also been announced to help firms manage the impact of the 2026 non-domestic rates revaluation.

Finance Secretary Mark Drakeford said the Final Budget would provide extra resources for the services Wales relies on, while delivering certainty for public services.

He said: “This Final Budget provides extra resources to support the services Wales relies on. Every department has been protected with at least the same funding in real terms as this year, including extra funding for inflation and pay – recognising the vital work of our public service workforce.

“By working across the Senedd, we are providing certainty and stability for public services now, while ensuring the next Welsh Government has the resources it needs to deliver its priorities from day one.”

The Final Budget will be debated and put to a vote in the Senedd on Tuesday, January 27. The timetable published by the Welsh Government shows the Draft Budget was released on Tuesday, October 14, with the detailed Draft Budget published on Monday, November 3, before the budget agreement with Plaid Cymru was reached on Tuesday, December 9.

Responding to the Welsh Government Budget, Aaron Hill, Director of CPT Cymru, said: “We welcome news that the Welsh Government’s Final Budget includes an additional £6 million in revenue and £10 million in capital funding. This is a positive step that responds to CPT’s calls for greater investment to keep pace with the rising cost of running services.

Buses are a vital part of Wales’s economy, carrying nearly 200,000 passengers every day and enabling people to earn, learn and spend in their local communities. They are the most popular form of public transport in Wales, accounting for three quarters of all journeys.

Investment in buses delivers exceptional returns – every pound invested brings £4.55 in benefits to the environment, public health, and local communities. Yet funding for buses in the UK remains far below levels seen across Europe, and in real terms, core support has been eroded over the last decade.

This additional investment is welcome, and we look forward to working with the Welsh Government to ensure this funding delivers maximum benefit for passengers, communities and the economy.”

Responding to the Welsh Government’s Final Budget 2026-27, director of the Welsh NHS Confederation, Darren Hughes, said: “NHS leaders in Wales broadly welcome the final budget during a difficult time for public finances. The proportion of Welsh Government spend on the NHS does not go unrecognised and the additional funding for health and social care is welcomed.

“Many local government services, including social care, education, social housing and planning and development are wider determinants of health, so the uplift for local government will also be welcome in going some way to address rising cost and demand.

“However, we know this is a fairly ‘business as usual’ budget, given the proximity to the Senedd election, meaning we have not seen the significant shifts we’ve been calling for. This includes a meaningful shift to prevention across departments and capital investment that meets the needs of services in order to bring down running costs and improve services in the face of rising demand.

“Unless we think long term and target areas such as social care, prevention and capital investment, we can’t expect demand to come down on its own and see tangible improvement for the people of Wales.”

Commenting, Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “Plaid and Labour’s budget stitch-up is a bad deal for Wales.

“A budget that contains funding for an ever-bloating bureaucracy, foreign aid, overseas offices, the Nation of Sanctuary plan, Senedd expansion and the creation of 36 more politicians is a budget that will not address the people’s priorities.

“Only the Welsh Conservatives can be trusted to cut waste so we can cut taxes and fix our vital public services.”

Tories accused of “chasing Reform” as Lib Dems demand by-election if he jumps ship

A SENEDD member for Brecon and Radnorshire has been stripped of the Conservative whip after his party said he continued to explore talks with Reform UK figures about the possibility of defecting.

James Evans MS was removed from the Welsh Conservative group’s front bench and now sits as an independent in the Senedd while he considers his political future.

The decision was taken by Welsh Conservative leader Darren Millar MS, who said the move followed a breakdown in trust after Mr Evans was asked about reports linking him to Reform. Senior figures said assurances were given that the matter had been closed, but that further contact continued.

Mr Evans has not been accused of any criminal wrongdoing and the issue is a political one: whether a sitting MS can keep their party position while holding discussions about leaving.

In a statement following the decision, Welsh Liberal Democrat leader Jane Dodds MS said the episode exposed “the complete mess the Conservatives have created by chasing Reform instead of focusing on the people of Wales”.

She claimed Reform was “fast becoming a retirement home for Conservatives worried about losing their seats” and criticised what she described as politicians “jumping ship” based on whether it improves their chances of holding on to power.

Ms Dodds added that if Mr Evans chooses to defect, he should “have the courage to face the electorate in a by-election and seek a fresh mandate from the people of Brecon and Radnorshire”.

Under Senedd rules, the removal of the whip does not automatically trigger a by-election. An MS can sit as an independent or join another group without vacating their seat, unless they resign or are disqualified.

The row lands as parties brace for the Senedd election in May, with Reform attempting to build its presence in Wales and the Conservatives under pressure in polls.

Mr Evans has previously held a prominent role within the Welsh Conservative group. In response to the whip being withdrawn, he has indicated he will continue working for constituents and has voiced concerns about the direction of the wider Conservative Party. It is not yet clear whether he will remain independent, seek to rejoin the Conservative group, or align himself with another party.

The Herald understands discussions and speculation about possible defections have been swirling around several political figures across the UK in recent months as parties reposition ahead of the next round of elections, with Reform targeting disaffected Conservatives in particular.

No timetable has been set for any decision by Mr Evans, but party opponents have seized on the incident as further evidence of instability at a time when public services and living costs remain at the top of many voters’ concerns.

UK-WIDE hospitality company Loungers plc is planning to open a new beachfront venue in Tenby, with the promise of 30 jobs created, in just over two months’ time.

The West Country-based café/bar group gearing up to open Lansio Lounge at Tenby’s South Beach on Wednesday March 25.

Loungers, founded in 2002, runs family-friendly Lounge café bars across the UK – including the Cofio Lounge at the Guildhall, Carmarthen, and the Waldo Lounge at Haverfordwest’s Riverside.

The Loungers build and design team will transform the former Salty’s Beach Bar and Restaurant on Water’s Edge, South Beach in their unmistakable and unique style, Loungers has said.

Loungers added: “A real home from home, Lansio Lounge will cater for all tastes throughout the day with a varied and innovative all-day menu.  Particular attention will be paid to families with a selection of games, books, colouring pencils, and pads on offer.  A full menu, high chairs and baby-changing facilities are also available for Little Loungers.

“With community and neighbourhood at its heart, Lansio Lounge will welcome locals looking for a space for regular catch ups, meetings and events – everything from business networking, book or knitting clubs to parent and baby meets and life drawing classes.”

Ellie Gould, regional community manager, The Lounges, says: “We can’t wait to open the doors of Lansio Lounge in March.  We hope our family friendly environment and top-notch food and drink offering will prove popular with local residents and visitors.

“We’re passionate about integrating genuinely into the communities we serve so we’re looking forward to meeting everyone and to playing our part at the heart of Tenby’s food and drink scene.  Anyone looking for a space to host events or groups should pop in once we are open, we’d love to hear from them and see what we can do to help.”

Late last week, the Loungers plans for the former Salty’s Beach Bar and Restaurant were revealled following an application to Pembrokeshire Coast National Park for Loungers signage at Salty’s, which recently closed.

Tenby Town Council is recommending approval for the signage, but the park’s buildings conservation officer Rob Scourfield is recommending refusal for the proposals, in the town’s conservation area, mainly on the grounds illuminated signage is not generally allowed there.

The signage application will be considered at a later date.

Family-run venue Salty’s Beach Bar and Restaurant announced its closure on social media, confirming that Sunday, January 4 was its final day of trading.