Senedd passes budget after Welsh Labour makes deal with Plaid Cymru

"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 ahead of 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."

The Cardiff Bay Labour administration passed a £27.5bn budget for 2026–27 after striking a deal with Plaid Cymru, securing a £1.2bn increase year-on-year. The agreement saw Plaid Cymru abstain, avoiding an impasse that would have forced severe cuts. Health and social care funding rises by £180m (3.6%), while local government receives £113m, ensuring at least a 4% cash increase for all councils. Additional allocations cover bus services, apprenticeships, further education and flood prevention. The budget includes £120m capital reserved for the incoming government. Opposition parties criticised the package, and both Labour and Plaid hope to claim credit.

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