Politics
Sweeping cuts loom as Drakeford unveils £27bn spending plans
THE WELSH Government has unveiled its £27bn spending plans as a high-stakes budget showdown looms, with billions of pounds for public services teetering on a knife edge.
Mark Drakeford has today (October 14) outlined the draft 2026/27 budget which funds everything from health and education to culture, councils and the environment in Wales. His draft budget includes an extra £800m compared with last year’s spending plans.
Prof Drakeford will be guiding his ninth and final budget through the Senedd as finance secretary or formerly first minister – and next year’s promises to be the most difficult yet.
Labour holds 29 of the Senedd’s 60 seats and needs the support of at least one opposition member – and likely two – to pass the spending plans for the 12 months from April.
Last year’s budget was voted through after ministers cut a £100m deal with Jane Dodds, the Liberal Democrats’ Welsh leader and the party’s sole Senedd member.
But a similar deal would leave ministers one vote short this year unless Labour holds the Caerphilly seat in next week’s by-election triggered by the death of Hefin David.
If not passed in the Senedd by April, spending plans would revert to 75% of last year’s budget which would rise to 95% if still not agreed by the end of July. This would also impact directly funded bodies such as the Senedd commission and Wales Audit Office.
Last year, it was estimated that failing to pass motions on the budget and Welsh rates of income tax could potentially see Wales lose around £7bn.
The parliamentary arithmetic suggests ministers would either need to win over Plaid Cymru, the Conservatives, Rhys ab Owen or Russell George – who sit as independents – or Tory-turned-Reform UK Senedd member Laura Anne Jones to escape such a scenario.

Plaid Cymru has helped ministers pass budgets in recent years before the agreement between the two collapsed in 2024. Rhun ap Iorwerth has not ruled out a deal though his party would be loath to lend its support with an election on the horizon in May.
But the Conservatives have extended an olive branch, saying a deal may be possible. Darren Millar, the leader of the opposition, suggested his party could help pass the budget if the Welsh Government scrapped land transaction tax – Wales’ equivalent of stamp duty.
In a letter to first minister Eluned Morgan, he wrote: “While we disagree fundamentally with the Labour Welsh Government on many issues, and on many of your spending priorities, we also accept that it would be irresponsible not to offer to engage with you on this issue.”
Plaid Cymru and the Conservatives voted against last year’s budget.
Prof Drakeford published a “business-as-usual” draft budget, rising in line with inflation, in an effort to minimise political rows and avoid tying the next Welsh Government’s hands. The draft budget allocates 98.6% of available funds, leaving around £380 million unallocated.
He warned of “damage to Wales” if the draft budget – which includes about £13bn for health and social care as well as nearly £7bn for housing and councils – cannot be agreed.
Welsh rates of income tax and the main rates for land transaction tax rates would remain unchanged under current budget plans but the rates for landfill disposal tax would increase.
Prof Drakeford said: “My door remains firmly open to working with other political parties in the Senedd who share my conviction that we have a collective responsibility to pass the Welsh budget and believe a more ambitious budget could be agreed.”
The former first minister will give a statement in the debating chamber or Siambr this afternoon before unveiling a more detailed draft budget on November 3.
Prof Drakeford will also appear before the finance committee to give evidence on Thursday (October 16), kicking off weeks of Senedd scrutiny on the outline draft budget.
Chancellor Rachel Reeves will announce the UK’s autumn budget, detailing funding for Wales, on November 26. The final Welsh budget is then set to be published on January 20, with a key vote in the Senedd pencilled in for January 27 although further votes could follow.
News
Stephen Kinnock appointed Secretary of State for Wales in Burnham Cabinet reshuffle
Stephen Kinnock has been named the new Secretary of State for Wales after Prime Minister Andy Burnham unveiled his first Cabinet reshuffle, replacing Jo Stevens following two years in the post.
The appointment comes as the new Prime Minister continues to shape his government after entering Downing Street, with the Wales Office among a number of departments seeing changes at ministerial level.
Mr Kinnock, the Labour MP for Aberafan Maesteg, takes over responsibility for representing Welsh interests at the Cabinet table and overseeing the UK Government’s relationship with the Welsh Government.
The 55-year-old has served in Parliament since 2015 and has held a number of ministerial positions. Before joining the Cabinet, he served as a minister in both the Home Office and the Department of Health and Social Care, where he was involved in immigration, public health and NHS-related policy.
He is also well known as the son of former Labour leader Neil Kinnock, one of Wales’ most prominent political figures, and former European Commissioner Glenys Kinnock.
Mr Kinnock replaces Jo Stevens, who has served as Secretary of State for Wales since 2024. During her tenure she worked on issues including economic investment, the transition to green energy, rail infrastructure and cooperation between the UK and Welsh Governments.
The change follows Prime Minister Andy Burnham’s first Cabinet reshuffle since taking office, with several senior ministerial appointments announced as he begins setting out the priorities of his new administration.
As Secretary of State for Wales, Mr Kinnock will be expected to play a key role in discussions over economic growth, energy, transport, the future of the steel industry, and constitutional matters affecting Wales. He is also likely to be heavily involved in negotiations between Westminster and Cardiff Bay as the Burnham Government develops its agenda.
His appointment will be closely watched across Wales, including in Pembrokeshire, where businesses, local authorities and public services will be looking for signs of how the new Government intends to deliver on its promises for investment, infrastructure and economic development.
Further announcements on the new Government’s programme are expected in the coming days.
News
Pembrokeshire households set for £45 electricity bill saving after VAT cut
Henry Tufnell welcomes Prime Minister Andy Burnham’s first cost-of-living measure, which will remove VAT from domestic electricity bills from October
HOUSEHOLDS across Pembrokeshire are expected to save around £45 a year after Prime Minister Andy Burnham announced that VAT will be removed from domestic electricity bills.
The UK-wide tax cut will reduce the VAT rate on household electricity from 5% to zero from October 1, in time to be reflected in the next Ofgem energy price cap.
The Government says energy suppliers will be expected to pass the full reduction on to customers, including households on fixed-price tariffs.
Henry Tufnell, Labour MP for Mid and South Pembrokeshire, welcomed the announcement and said rising energy costs had placed considerable pressure on families across the county.
Mr Tufnell said: “I know just how hard it’s been for so many people across Pembrokeshire struggling with high energy bills.
“It is fantastic to see immediate action from our new Prime Minister, focused on making life easier for people in Pembrokeshire.
“Cutting VAT on electricity will bring welcome relief to local families and shows that we have a Labour government on our side, taking swift action to ease the cost of living.”
The measure is one of the first policy announcements made by Mr Burnham since entering Downing Street.
Speaking on his second day as Prime Minister, Mr Burnham said the tax reduction was intended to provide households with immediate “breathing space” ahead of the winter.
He said: “Westminster has not been working for people for too long, with families struggling with the cost of living.
“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as Prime Minister.
“We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
The Government estimates that removing VAT will reduce the annual Ofgem price cap by approximately £45 from October.
Ministers say this will be in addition to the £150 reduction in energy costs announced at the previous Budget.
Although the saving will apply across the UK, it could be particularly welcome in rural areas such as Pembrokeshire, where many households face additional transport, housing and heating costs.
The Government says the VAT reduction will initially be funded through the cancellation of the planned £1.8 billion Digital ID programme.
The electricity tax cut is expected to cost approximately £850 million during the 2026-27 financial year, although updated estimates will be published at the Budget.
Chancellor John Healey said: “For too long, too many people have struggled with the cost of living.
“Today’s energy tax cut will give families some breathing room on bills and provide some reassurance this winter.
“This measure is funded this year from cancelling the Digital ID programme, and it will help bring down inflation while supporting households in every postcode.”
Ministers estimate that the VAT cut could reduce CPI inflation by around 0.1 percentage points.
The relief will also apply to some small businesses that qualify for domestic energy VAT rates but are not VAT registered, along with eligible charities and residential care homes.
Further decisions on longer-term support for energy bills are expected to be announced alongside the Budget and an updated forecast from the Office for Budget Responsibility.
Local History
St Dogmaels chapel empty since 1993 to become home
PLANS to convert a former Pembrokeshire chapel, empty for more than three decades, to a home have been approved.
In an application submitted to Pembrokeshire Coast National Park, through agent Preseli Planning Ltd, Chris Jones and Sarah Lloyd sought permission for a change of use of the former Capel Bryn Salem chapel, Cippyn, St Dogmaels, to a dwelling, along with the installation of private foul water system and associated works.
The 1850-built independent chapel, some 1.5km from Poppit Sands, had fallen into disuse by 1993, but remains in a “generally intact and in a sound condition,” a supporting statement says.
It added: “Based on the fact that the building has been disused for at least 32 years it can be concluded that there is no longer a community need for the facility.”
The statement went on to say: “The building is largely intact, and the proposal mirrors its existing form. The scheme is sympathetic to the character and appearance of the existing building and would include comparatively minor works of re-roofing (maintaining the existing pitch and appearance).”
It finished: “It has been demonstrated that the retention of the building for community or commercial uses would not be viable. The proposed dwelling would contribute to the housing stock and accord with the strategy of the LDP2, to prioritise open market housing over holiday accommodation.
“The proposal would also contribute towards the provision of affordable housing through a commuted sum in line [with adopted policy].
“Furthermore, the proposed scheme is sympathetic to the character and appearance of the building and its setting and results in an appropriate and attractive form of development.”
The application was supported by St Dogmaels Community Council but concerns by members of the public were raised including the suitability of the existing access track and bridleway to serve a residential building and other access and highways issues, as well as impacts on neighbours and the effect of the proposal on the historic character of the former chapel and the surrounding landscape and potential land ownership issues.
An officer report recommending approval said: “During the determination of the application, amended plans and additional supporting information were submitted, including a revised Transport Management Plan, amended access arrangements, additional passing opportunities, ecological information and revised drainage details. These amendments were subject to further consultation.”
It added: “Whilst officers acknowledge the concerns expressed by neighbouring residents, matters relating to private legal rights, ownership of land, easements and other civil matters fall outside the remit of the planning system.”
The application was conditionally approved.
-
Health1 day agoWelsh Ambulance Service invites public to AGM and Board meeting
-
featured7 hours agoFrom a father-and-son project to an award-winning campervan business
-
Crime1 day agoTeen cleared of attempted murder but guilty of GBH after Milford teacher stabbed
-
Crime1 day agoWhat the Milford Haven School stabbing verdict really means
-
Business2 days agoPort appoints two new directors as energy and regeneration projects advance
-
Entertainment1 day agoImperial Hotel announces four-day Bank Holiday celebration in Tenby
-
Community10 hours agoHousehold Cavalry drum horse returns home to Pembrokeshire for final farewell
-
Entertainment2 days agoVegOut West brings food, music and festival atmosphere to Pembrokeshire







