First Minister welcomes UK Government Budget but opposition parties warn Wales shortchanged again

First Minister Eluned Morgan has welcomed the UK Government’s Autumn Budget but opposition parties in the Senedd have warned that Wales has been shortchanged again.

The Chancellor Rachel Reeves delivered her second Budget on Wednesday (November 26), laying out a series of tax rises as she aims to fill a black hole in the public finances.

Reeves also announced a series of measures aimed at helping people who are currently struggling with living costs, including a long-expected end to the two-child limit on benefits.

Baroness Morgan said the Chancellor had listened to Welsh Government calls to scrap the benefit limit and provide more cash for struggling public services.

She said: “This is a Budget which will help people right across Wales. It will mean more money in the pocket of people who need it the most, support for energy bills, a raise in the minimum wage and good news for pensioners.

“I’m pleased the Chancellor has listened to our call to scrap the two-child benefits limit, which will help to tackle the scourge of child poverty.

“We called on the UK Government to continue to support us with more money for hard pressed public services and they have delivered with an extra £500m, building on the £5 billion of extra funding they have already confirmed.

“We will also see significant investment in Wales, including in AI Growth Zones, advanced manufacturing, steel transition in Port Talbot, and nuclear energy in Anglesey.

“The UK Government has increased Wales’ fiscal flexibilities – this will give Wales a more durable financial settlement, supporting Welsh public services and economic growth and recognises the ambitions in the UK Government’s manifesto commitment.

“Last year these additional flexibilities meant we were able to provide thousands of additional treatments in the NHS in Wales.”

However, Plaid Cymru warned the Autumn Budget had left Wales “shortchanged” yet again with still no return of billions owed from HS2 and no progress on devolving the Crown Estate to Wales.

Plaid leader Rhun ap Iorwerth said: “This Budget makes one thing clear: Wales is being short-changed again.

“Nothing in today’s announcements changes the fundamental unfairness facing our nation.

“We have weaker fiscal powers than any other devolved nation, meaning less ability to invest in our economy, and the Treasury continues to withhold over £4 billion owed to Wales in transport funding.

“There was no action on increased National Insurance or Inheritance Tax costs which are pushing the Welsh public and private sectors to breaking point. Labour promised change but today proves there is none.

“Plaid Cymru called for bold action to tackle the cost-of-living crisis in this Budget – cut VAT on household energy bills and review unfair standing charges.

“Labour has again fallen short, with the OBR report showing that real household disposable income and living standards will be impacted negatively by this Budget.”

Ap Iorwerth welcomed the scrapping of the two-child cap but warned that Welsh families will still face “sky-high energy bills and mounting costs” after this Budget.

He said: “On taxation, Labour’s pick-and-mix approach is dishonest and chaotic. Rather than targeting the wealthiest and the big banks through wealth taxes, Rachel Reeves has chosen to freeze income tax thresholds for those in work, a dishonest and unfair wait to raise further revenue.

“Weeks of U-turns, last-minute announcements, and mixed messages have left households and businesses confused, undermining confidence in the economy. Labour has no plan – and the people of Wales deserve better.

“Plaid Cymru set out clear, credible proposals to the Secretary of State for Wales, but Labour has ignored them. There is still no return of billions owed from HS2, no progress on devolving the Crown Estate, and no meaningful help for families struggling with living costs.

“People in Wales deserved a Budget that recognised decades of underinvestment and the pressures facing households. Instead, we see more of the same.”

The Welsh Conservatives described the Chancellor’s spending plans as “nightmare before Christmas for hard working tax payers”.

Shadow Cabinet Secretary for Finance, Sam Rowlands MS, said: “Labour’s claim that they wouldn’t raise taxes on working people has been exposed for the second Budget in a row, Labour seem to relish spending other people’s money.

“Wales and the UK deserve better than a government that leaks its own Budget and punishes the very people who keep our economy running. With our Golden Economic Rule and £47bn savings plan, the Conservatives would control spending, back business and cut taxes to get Britain working again. Under Labour, we just keep paying more.

“Labour Ministers in Cardiff Bay must finally stand up for Wales instead of letting their Westminster colleagues raid people’s pockets. With even Scottish MPs getting a mention in the Budget, it’s clear Wales’ First Minister hasn’t lifted a finger for Wales.”

The Welsh Liberal Democrats warned against another rail rip off for Wales.

Leader of the Welsh Liberal Democrats Jane Dodds said: “This must not become a repeat of the HS2 scandal.

“Welsh taxpayers should not be forced to bankroll a railway they will never use. That is levelling up England using the wallet of Wales.”

The Welsh Liberal Democrats are calling on the UK Government to confirm that Northern Powerhouse Rail will be classified as England only, or guarantee full Barnett consequentials for Wales, so Welsh taxpayers are not made to fund an England only project.

The Children’s Commissioner for Wales, Rocio Cifuentes MBE, also responded to the “significant” 2-child limit announcement today.

She said: “A long-standing call of a huge number of children’s rights organisations, including Children’s Commissioners across the UK, has finally been heeded.

“Child poverty is the biggest issue affecting children and young people; it touches every single aspect of their lives and can be truly devastating.

“Today’s announcement is a significant and welcome development that will improve the lives of thousands of children in Wales.

“The call of a large number of children’s rights organisations, including Children’s Commissioners across the UK, is finally a reality.

“Poverty is the biggest issue affecting children and young people; it touches every aspect of their lives and can be truly devastating. Today’s announcement is a significant and positive development that will improve the lives of thousands of children in Wales.”