Budget talks begin between Welsh Government and Tories

Emily Price 

Discussions on a Welsh budget deal between the Conservatives in the Senedd and the Welsh Government have begun.

First Minister Eluned Morgan will sit down with Welsh Conservative leader Darren Millar for an initial discussion on next year’s budget on Tuesday (October 21).

The Welsh Labour Government is short of a majority in the Senedd and will require additional votes to pass its £27 billion budget in January.

Last week, Mr Millar extended an offer of a possible budget deal with Labour provided ministers considered some of the Welsh Conservative’s key priorities – such as scrapping Welsh stamp duty for all primary residential properties.

‘Open’

In a letter to Baroness Morgan, the Welsh Tory leader said he wouldn’t support a “more of the same” approach to the Welsh Government’s spending plans, but that a budget agreement “may be possible”.

Baroness Morgan welcomed the talks, telling Senedd Members last week that she was “open to discussions”.

Speaking ahead of the meeting, Mr Millar said: “I look forward to a constructive meeting with the First Minister to discuss next year’s budget and our Welsh Conservative priorities for Wales.

“It is essential that the Welsh Government’ s budget gets our economy moving and reflects the priorities of the people of Wales, not the priorities of politicians in Cardiff Bay.

“A key part of our plan to fix Wales includes cutting taxes, including Stamp Duty. This will form part of the discussions which will now take place.”

Cuts

The outline of the Welsh Government’s draft budget for 2026 – 2027 was laid before the Senedd last week..

The First Minister has warned of cuts to frontline services if the devolved Labour administration does not succeed in passing its budget.

When passing its last budget in March, the Welsh Government needed the help of the Senedd’s only Liberal Democrat politician, Jane Dodds, to get it through by a tight margin.

However, Ms Dodds single vote will not be enough to pass the budget if Labour loses the upcoming Caerphilly by-election following the sudden death of Labour MS Hefin David.

On December 16, Senedd Members from all parties will debate the draft budget before the final budget is laid on January 20th.

On January 27th, Senedd Member will vote on whether to pass the Welsh Government’s final spending plans.