Welsh Government’s final budget faces Senedd vote today

The Welsh Government’s final budget for 2025-26 will be debated and voted on in the Senedd today, with £1.6bn in additional public spending proposed.

The budget, which has secured backing from the Welsh Liberal Democrats, includes significant investment in social care, childcare, transport, and climate initiatives.

However, Plaid Cymru has refused to support it, arguing it does not go far enough in securing a fair funding deal for Wales.

Budget deal secures key spending commitments

As a minority government, Welsh Labour required support from at least one other party to pass its budget.

A key agreement was reached with Jane Dodds MS, leader of the Welsh Liberal Democrats, securing over £100m of additional funding in shared priority areas.

Ms Dodds welcomed the agreement, stating:

“I’m delighted we have secured funds needed to deliver my party’s key priorities of improving social care, increasing quality childcare, tackling water pollution, improving roads and public transport and protecting vital council-run services.”

The final budget includes:

• Social care: An extra £30m to ease hospital pressures and expand community care services.
• Childcare: £30m to extend the Flying Start programme, increasing access for two-year-olds.
• Transport: £8m for £1 bus fares for 16 to 21-year-olds and £1.25m for improvements to the Heart of Wales rail line.
• Culture and leisure: £4m for arts, culture, heritage, and sports, plus £5m for playground refurbishments.
• Climate and rural affairs: £10m for the Rural Investment Scheme and £5m to tackle water pollution.

Welsh Government defends funding choices

The Welsh Government says the budget reflects difficult financial constraints and aims to prioritise the most pressing needs.

Ministers argue that while funding pressures remain, the additional allocations will support essential services and help address cost pressures across local authorities.

Despite these measures, concerns remain in some sectors. The Royal College of Nursing welcomed the extra social care funding but called for clarity on support for nursing education following Cardiff University’s proposal to close its school of nursing.

Universities Wales, meanwhile, acknowledged the additional £18.5m in capital funding for 2024-25 but warned that “it is difficult to see how this budget provides a sustainable position for Welsh universities going forward.”

Plaid Cymru: Budget fails to deliver fairness for Wales

Plaid Cymru has criticised the budget, arguing that it fails to address long-standing funding issues and calling for greater financial powers for Wales.

Plaid Cymru’s finance spokesperson, Heledd Fychan MS, said:

“Wales was promised change under two Labour governments, but all we’ve had is more of the same – unfairness and a lack of ambition for our nation.

“We’re still denied the £4bn owed to us from HS2. There’s no fair funding deal to help our struggling public services. And just last week, Labour voted against Wales having control over our own natural resources – turning down millions in potential profit for our country.”

She added that the party could not support a budget that “fails to meet the challenges facing Wales, from local government to our NHS.”

Senedd vote and next steps

The final budget debate coincides with discussions on the Welsh Rates of Income Tax, which the government has proposed keeping at current levels. If the budget is approved, the new funding allocations will be implemented from April.

The outcome of today’s vote will determine whether the Welsh Government’s spending plans for the next financial year move forward as proposed.