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Politics

Extra £1.5bn for public services as Welsh Government unveils spending plans

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THE WELSH Government has unveiled its spending plans for next year with an additional £1.5bn allocated to public services, including an extra £610m for health and social care.

Mark Drakeford announced all government departments will receive increases in day-to-day revenue and longer-term capital funding, marking a departure from last year’s cuts.

Wales’ finance secretary described the £26bn draft budget as offering an opportunity to rebuild and reinvigorate public services after 14 difficult years.

He said: “This is a budget for a brighter future, delivering an extra £1.5bn for our public services and priorities, helping to put Wales firmly back on the path of growth….

“This is in stark contrast to the last couple of years when we have been forced to make some very difficult and painful decisions.”

The ex-First Minister added: “This is a good budget for Wales. But it will take time to reverse the damage inflicted on Wales over 14 years of neglect from previous UK administrations.”

The draft budget includes an extra £610m for health and social services, £186m to improve rail services, including the core valleys lines, and £81m to build more social housing for rent.

Councils will receive a 4.3% increase in the local government settlement.

The increases by department are as follows:

  • Health: 3.8% revenue, 30% capital
  • Housing and local government: 5.4% revenue, 11.2% capital
  • Education: 4.9% revenue, 8.1% capital
  • Transport: 12% revenue, 10.7% capital
  • Climate change and rural affairs: 6.6% revenue, 31% capital
  • Economy, energy and planning: 4.3% revenue, 59.1% capital
  • Social justice: 4.7% revenue, 23% capital
  • Central services and administration: 7.4% revenue, 47% capital

Welsh rates of income tax will remain unchanged, with taxpayers continuing to pay the same rates as in England and Northern Ireland.

chart visualization

However, the Welsh Government announced that higher residential rates of land transaction tax – Wales’ equivalent of stamp duty – will increase by 1%, raising an extra £7m.

The standard rate of landfill disposal tax will also rise to reduce waste and boost recycling.

The big question is how the Welsh Government will pass its budget, with parliamentary arithmetic in the Senedd on a knife-edge and Labour one seat short of a majority.

First Minister Eluned Morgan

Eluned Morgan, who has warned Wales could lose out on £1bn if opposition parties do not support the spending plans, will need to cut a deal with at least one opposition member.

Previous budgets have been passed with the help of Plaid Cymru, Liberal Democrat and independent Senedd Members, with a deal with the Conservatives seeming unlikely.

Plaid Cymru backed the Welsh Government’s budget in recent years in return for 46 commitments but the cooperation deal between the two collapsed in October 2023.

The First Minister could also reach out to Jane Dodds, the Lib Dems’ leader in Wales and the party’s sole Senedd Member, or Rhys ab Owen, who sits as an independent.

Jane Dodds or Rhys ab Owen could play a role in helping the Welsh Government get its budget plans passed
Jane Dodds or Rhys ab Owen could play a role in helping the Welsh Government get its budget plans passed

Senedd Members need to agree a motion on Welsh rates of income tax (Writ), which are forecast to raise about £3.3bn in 2025/26, before the budget can be passed.

Writ defaults to zero if a motion cannot be passed, meaning basic, higher and additional rates would decrease by 10p in the £1 for Welsh taxpayers.

If the annual budget motion is not agreed by the start of the financial year in April, the budget of the Welsh Government would revert to 75% of the previous year’s.

This would also affect directly funded bodies such as the Senedd, Public Services Ombudsman, Wales Audit Office and the Electoral Commission.

If a motion is still not agreed by the end of July, the budget rises to 95%.

Mark Drakeford will lead a debate on the draft budget in the debating chamber or Siambr, which will be broadcast live on Senedd.TV from about 2.50pm today.

He will also appear before the Welsh Parliament’s finance committee on Thursday morning to face questions about the spending plans for the 12 months from April.

Senedd Members will then scrutinise the draft budget through December and January.

Committees will take evidence from witnesses including the Office for Budget Responsibility, Institute for Fiscal Studies, Wales Fiscal Analysis, Bevan Foundation and Citizens’ Advice.

Based on this evidence, committees will publish scrutiny reports by February 3.

A further debate on the draft budget will be held the following day, with the final budget set to be published on February 25 and a crunch vote to follow on March 4.

Navigating this year’s budget process will be a key test for Wales’ new First Minister, with the next Senedd election looming in less than 18 months in May 2026.

 

News

Kurtz calls on Labour MPs to back release of Mandelson papers

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Opposition motion follows Epstein-linked document disclosures

A SENEDD Member has called on Labour MPs to support a Conservative Opposition Day Motion demanding the release of papers linked to Peter Mandelson’s appointment as the UK Ambassador to the United States.

Samuel Kurtz said the motion follows the publication of new files and photographs involving Lord Mandelson, which were released as part of a United States investigation into the disgraced and convicted child sex offender Jeffrey Epstein.

Speaking out, Mr Kurtz said that during Prime Minister’s Questions, the Prime Minister admitted he was aware of Peter Mandelson’s ongoing relationship with Epstein at the time of his appointment.

“That means the Prime Minister knowingly appointed Peter Mandelson to one of the most important diplomatic roles in government despite his links to Epstein,” he said. “This raises serious questions about the Prime Minister’s judgement.”

Mr Kurtz went on to accuse the Prime Minister of attempting to prevent transparency over the appointment process.

“Now, instead of being open and transparent, the Prime Minister is attempting to block the release of documents relating to Mandelson’s appointment in order to protect his own position,” he said.

He warned that Labour MPs who oppose the motion would share responsibility for withholding information, adding: “If Labour MPs support blocking the release of these papers, they will be complicit in covering up the process and judgement that led the Prime Minister to appoint Peter Mandelson as Ambassador, despite his friendship with Jeffrey Epstein.”

 

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News

Welsh peace campaigner removed from court during Palestine protest case

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Concerns raised over use of terrorism laws against silent sign-holders as Welsh activist among those ejected from London hearings

A WELSH peace campaigner was among several protesters removed from court by security staff this week as plea hearings continued for people charged under terrorism legislation for holding pro-Palestine signs.

Angie Zelter, aged 74, from Knucklas, appeared at Westminster Magistrates’ Court in London on Monday as part of mass proceedings linked to the Government’s ban on Palestine Action.

Campaigners say hundreds of people across the UK – including some in Wales – have been charged under Section 13 of the Terrorism Act 2000 after quietly holding handwritten signs reading: “I oppose genocide. I support Palestine Action.”

Zelter, a long-time anti-war activist and founder of Trident Ploughshares, attempted to read a prepared statement criticising the prosecutions before being escorted from the courtroom, according to supporters.

She told the court she did not accept being labelled a terrorist for what she described as peaceful protest and opposition to the war in Gaza.

Outside the building, fellow campaigners said she had sought to argue that international law and freedom of expression should protect non-violent dissent.

Also removed from the hearing was Tim Crosland, co-founder of Defend Our Juries, who said he had tried to raise legal objections to the charges before being asked to leave.

Arrests nationwide

Organisers of the “Lift The Ban” campaign claim nearly 3,000 people have been arrested across Britain since late 2025 for taking part in silent vigils, with several hundred now facing prosecution. The offences carry a maximum sentence of six months in prison.

The group argues the legislation is being used to criminalise peaceful protest. It is calling on the Government to lift the ban on Palestine Action and to change its stance on military cooperation with Israel.

However, ministers have defended the proscription, saying the organisation has been linked to criminal damage and disruption at sites connected to defence manufacturing.

Welsh perspective

While most hearings are taking place in London, campaigners say demonstrators in Wales have also taken part in sign-holding protests.

Civil liberties advocates have warned that applying terrorism laws to non-violent protest risks setting a troubling precedent.

For many in mid Wales, the sight of a pensioner from rural Powys being removed from a courtroom has sharpened debate over where the line lies between legitimate protest and criminality.

Further hearings are scheduled in the coming weeks, with more defendants from across the UK expected to appear.

 

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Business

Bid to convert office space into chocolate factory, salon and laundrette

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A CALL for the retrospective conversion of office space previously connected to a Pembrokeshire car hire business to a chocolate factory, a beauty salon and a laundrette has been submitted to county planners

In an application to Pembrokeshire County Council, Mr M Williams, through agent Preseli Planning Ltd, sought retrospective permission for the subdivision of an office on land off Scotchwell Cottage, Cartlett, Haverfordwest into three units forming a chocolate manufacturing, a beauty salon, and a launderette, along with associated works.

A supporting statement said planning history at the site saw a 2018 application for the refurbishment of an existing office building and a change of use from oil depot offices to a hire car office and car/van storage yard, approved back in 2019.

For the chocolate manufacturing by ‘Pembrokeshire Chocolate company,’ as part of the latest scheme it said: “The operation comprises of manufacturing of handmade bespoke flavoured chocolate bars. Historically there was an element of counter sales but this has now ceased. The business sales comprise of online orders and the delivery of produce to local stockist. There are no counter sales from the premises.”

It said the beauty salon “offers treatments, nail services and hairdressing,” operating “on an appointment only basis, with the hairdresser element also offering a mobile service”. It said the third unit of the building functions as a commercial laundrette and ironing services known as ‘West Coast Laundry,’ which “predominantly provides services to holiday cottages, hotels and care homes”.

The statement added: “Beyond the unchanged access the site has parking provision for at least 12 vehicles and a turning area. The building now forms three units which employ two persons per unit. The 12 parking spaces, therefore, provide sufficient provision for staff.

“In terms of visiting members of the public the beauty salon operates on an appointment only basis and based on its small scale can only accommodate two customers at any one time. Therefore, ample parking provision exists to visitors.

“With regard to the chocolate manufacturing and commercial laundrette service these enterprises do not attract visitors but do attract the dropping off laundry and delivery of associated inputs. Drop off and collections associated with the laundry services tend to fall in line with holiday accommodation changeover days, for example Tuesday drop off and collections on the Thursday.

“With regard to the chocolate manufacturing ingredients are delivered by couriers and movements associated with this is also estimated at 10 vehicular movements per week.”

The application will be considered by county planners at a later date.

 

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