Final Welsh budget proposals published
The Welsh Government says the Final Budget 2026-27 will provide £1.2bn more for 'people, public services and businesses'
The Welsh Government have published their Final Budget for the 2026-27 financial year, following an agreement with Plaid Cymru to support the spending plans.
Labour has no majority in the Senedd and so needed at least two opposition votes to pass their budget
The Welsh Government says the Final Budget 2026-27 will provide £1.2bn more for 'people, public services and businesses' across Wales than in this financial year.
It makes £400m of new allocations since the Draft Budget was published in October.
This includes £300m of revenue funding for local government and the NHS, secured through the budget agreement between the Welsh Government and Plaid Cymru.
And a further £100m of revenue and capital funding, which will support bus services, apprenticeships, further education, flood prevention, and the maintenance of school buildings.
The Final Budget 2026-27 provides £27.5bn in 2026-27
Key allocations include:
£112.8m additional funding for local government, with all councils receiving increases of 4% or above.
£180m additional funding for the health and social care budget, bringing the total revenue budget to more than £12.6bn.
£116m package of support for businesses over two years to help with the impact of the 2026 non-domestic rates revaluation.
Finance Secretary Mark Drakeford 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 Welsh Conservatives have been heavily critical of the budget:
The Welsh Conservatives have been heavily critical of the budget deal, with Shadow Cabinet Secretary for Finance, Sam Rowlands MS saying:
“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.”
The Final Budget debate and vote will take place in the Senedd on 27 January 2026.