All government departments and local authorities will get real-terms funding increases after Plaid agrees to abstain
Cardiff Bay’s Labour administration has managed to pass the Welsh budget after striking a deal with Plaid Cymru, releasing a real-terms funding increase for all government departments and local authorities before May’s Senedd elections.
With 100 days to go before the contest, in which polls suggest the pro-independence Plaid Cymru will end more than 100 years of Labour hegemony in Wales, the government has allocated £27.5bn in spending for 2026-2027, up £1.2bn on the previous fiscal year.
As a result of the deal, which the Senedd passed on Tuesday evening after Plaid Cymru agreed to abstain, the health and social care budget has risen by £180m, or 3.6%. Another £113m for local government means that all councils will receive a minimum 4% cash increase, and other additional spending includes bus services, apprenticeships, further education and flood prevention.
In a statement after the vote passed, the first minister, Eluned Morgan, said the budget was “based on Labour values – fairness, stability, delivery”.
