Ex-Labour ministers dispute First Minister’s ‘overspend’ claims

Emily Price 

Former Labour ministers have disputed Plaid Cymru’s claim that the newly elected Welsh Government inherited “hundreds of millions of pounds” in overspending.

Welsh Labour’s interim leader Ken Skates called for the record to be corrected in the Senedd on Tuesday (July 7) following an exchange with First Minister Rhun ap Iorwerth on funding for children with additional leading needs (ALN).

Mr Skates criticised Plaid for not directly allocating £340 million in additional UK Government funding to frontline ALN services in Wales.

In his response, Mr ap Iorwerth that his party had pledged “to build a sustainable ALN framework for Wales” but added that he was working  “within tight constraints”, including “hundreds of millions of pounds of overspend that this government inherited from the last”.

Later during Senedd proceedings, Mr Skates called a point of order, saying that in fact, the new Plaid Cymru-led government had “inherited £120 million, plus the £300 plus million in consequentials”.

Presiding Officer Huw Irranca-Davies said the intervention was not a point of order, but invited the First Minister to offer a response.

Mr ap Iorwerth said: “Other than to say that the in-year pressures left by the previous Labour Government are ones that we are having to deal with, and we will.”

During questions to Trefnydd Heledd Fychan, Reform’s Llyr Powell said the Senedd and the pubic deserved to know “the truth” about the Welsh Government’s finances  ahead of Plaid’s first supplementary budget next week.

“Right now, we have had ministers criticise former ministers, and no-one knows who’s telling the truth. It is not time that this Senedd sees who’s lying?” he said.

Labour’s former education minister Lynne Neagle also addressed the First Minister’s “overspend” claims, asking the Trefnydd for a statement on the alleged details.

She said: “I am very well aware that the government was left £120 million in capital, £337 million in consequentials.

“I am not aware of any overspends, and funding pressures within the NHS are not the same as overspends.

“Now, I know feelings are running high about Plaid Cymru’s supplementary budget, but making incorrect statements is not the correct way to build a consensus on the budget.

“Show us the figures if you have any evidence of any overspends.”

‘Open’

Ms Fychan said the Welsh Government was being “entirely open” about the situation it had inherited from Labour following the election on May 7.

She said: “There are commitments that have been made without ensuring that there is a budget in place for them in coming years.

“That’s true in the portfolio that I’ve inherited, and it’s true for all Ministers.

“The forward look hasn’t been adequate, and it is a far more challenging situation than I personally, in my discussions with Mark Drakeford on some of these issues, had expected—but, certainly, this isn’t the situation that we’ve inherited.

“As you know full well, when you’re in government, the access that you have to information is very different to what you receive in access talks or as an opposition party.

“So, that transparency and that work is being done.

“We have a debate next week, and we are more than willing to be transparent with everyone within this Senedd so that we can address the very real challenges that we’ve inherited.”

In June, Mr Skates tabled a written question asking the Welsh Government how much unallocated revenue and capital funding was available in Plaid’s budget for the 2026/27 financial year.

Finance Minister Elin Jones responded saying that as of 12 May 2026, there was “£420m unallocated revenue and £118m unallocated capital of which £3m is ringfenced for financial transactions available in the Welsh Government’s budget for the 2026-27 financial year”.

“This does not include any funds available to be carried forward in the Wales Reserve which is subject to confirmation of the 2025-26 underspend,” she added.

‘Fiction’

Speaking after today’s exchanges in the Chamber, Welsh Labour’s Finance Spokesperson, Huw Thomas MS said: “The statement from the First Minister in the Senedd, claiming hundreds of millions of pounds in overspend is pure fiction.

“It’s nothing more than a desperate attempt to cover the fact that Plaid Cymru came into government with an uncosted manifesto.

“The last Welsh Labour government made the responsible decision to leave £120m in capital revenue for the next government to allocate, as well as hundreds of millions of additional consequentials.

“Plaid Cymru cannot complain about the financial legacy whilst spending the money Labour left behind – they cannot have it both ways.”