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Labour left ‘hugely challenging’ financial situation in Wales – First Minister

16 Jun 2026 2 minute read
First Minister Rhun ap Iorwerth

Eleanor Storey, Press Association

Labour has been accused of leaving behind a “hugely challenging” financial situation in Wales after it was ousted from Government in May.

Rhun ap Iorwerth, who became the first Plaid Cymru head of Government following a historic election victory for his party, said the previous administration had “mismanaged funds”.

The First Minister has faced pressure in recent weeks to explain how he will deliver commitments made in Plaid Cymru’s election campaign, including an expensive expansion of free childcare.

At First Minister’s Questions on Tuesday, Dan Thomas, the leader of Reform Wales, said: “I think the First Minister and I can agree that Labour have left a financial mess.

“But the way that Government ministers have been talking about the scale of that mess, it seems to me that you are warming us up for some unpleasant announcements.

“I would like the First Minister to rule out any tax rises and any service cuts.”

Mr ap Iorwerth said: “I think I’ve made clear on many occasions that this Government… will not raise taxes.

“What I can confirm as true is that in health, the previous government left in-year pressures to the tune of hundreds of millions of pounds.

“On top of that, they made multimillion-pound unfunded commitments on childcare, for example, leaving a hugely challenging legacy behind.

“It’s for Labour to answer how this situation came to pass, it’s for this Government to roll up our sleeves and be determined to deliver on those pledges that we put in front of the people of Wales.”

Ken Skates, the interim leader of Welsh Labour, accused Mr ap Iorwerth of suggesting there is “some sort of non-existent black hole” in the country’s finances.

Mr ap Iorwerth said: “The in-year pressures left as a result of the actions of the previous Labour administrations are ones that we will deal with now.

“What’s become very, very clear… is the mismanagement of funds under the previous government,” he added.

“I am not going to use that as an excuse for the work that we have to get on with now.”


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Mark
Mark
56 minutes ago

You knew the situation Rhun. You can’t complain now. You decided that vanity projects such as free childcare for the richest was the way to go. Oh, and have you got all angry and started fighting for Barnet, HS2, Crown Estates etc? Thought not. It’s going to be more of the same or, without a majority, less, isn’t it? The writing is already on the wall. A plague on all your houses.

J Davies
J Davies
56 minutes ago

Not sure anyone really properly described how the devolved budget process works. It’s essentially a disbursement exercise, there is no economic management going on and you can’t really over or underspend. Without a change in the limited tax powers, It is inevitable that any commitment to increase the real value of spending in one area must be accompanied by a freeze or a fall somewhere else. Not like the UK gov that can just burry any immediate problems with more borrowing.

GaryCymru
GaryCymru
47 minutes ago

I have to say, I feel more confident about the current leadership in Cymru to address this situation, than the previous lot.
It doesn’t help that Westminster and the Royals continue to steal from us and refuse to give rightful control over our finances. Rhun basically have to play monopoly while someone at the table moves pieces they’re not meant to.

Elved A
Elved A
2 minutes ago

Sorry doesn’t cut the mustard.
Rhun supported a budget last year and he would have had forecasts from the UK Treasury, WG spending plans and medium-term financial projections and future funding. So no excuses.
This is the same as Rachel reeves ‘black hole’ after last election. Laying groundwork to roll back on uncosted electoral commitments, and make budget cuts to key public services

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