Plaid MPs challenge Labour over Budget’s impact on Welsh public services

Nation.Cymru staff

Plaid Cymru MPs have challenged the UK Government over the impact of its Budget on Wales, citing independent analysis warning that higher inflation will leave Welsh ministers facing difficult spending choices.

During Welsh Questions in the Commons on Wednesday, November 4, the party pressed Welsh Secretary Stephen Kinnock on public service funding, rail investment and support for families.

The exchanges came after Cardiff University’s Wales Fiscal Analysis team concluded that Welsh Government day-to-day funding would remain broadly flat in real terms in 2027–28.

The researchers calculated that increasing NHS spending in line with its historical average would require cuts of around 3.8% across the rest of the Welsh budget, including local government, education and transport.

That figure is a spending scenario rather than an across-the-board cut announced in the UK Budget. If NHS funding grew at half its historical rate, the analysis suggests average cuts of around 1.9% would be needed elsewhere.

Plaid Cymru’s Westminster leader, Liz Saville Roberts, accused Labour of failing to deliver the change promised before the general election.

She told the Commons: “The Prime Minister promised to end 40 years of Thatcherite ideology, but last week’s Budget was a whimper, rather than a reset.”

Ms Saville Roberts pointed to the prospect of real-terms public service cuts, a shrinking capital budget and a lack of progress on rail funding.

“Does the Secretary of State understand why so many people in Wales feel this Budget falls far short of the promises talked up by his Government?” she asked.

Ynys Môn MP Llinos Medi also challenged Mr Kinnock over the university’s findings.

“The Autumn Budget will deliver real-terms cuts to Welsh public services because it fails to compensate for higher inflation,” she said.

“Those are not my words, but those of Cardiff University, who say Wales now faces difficult choices, including cuts to local authorities like on Ynys Môn.”

Mr Kinnock responded: “I genuinely don’t know where Plaid Cymru is getting these numbers from.”

The university analysis, previously reported by Nation.Cymru, warned that additional funding announced by the Chancellor would not adequately protect public services from rising costs.

It also projected a £46 million reduction in the Welsh Government’s capital budget across the current and next financial years.

Finance Minister Elin Jones is due to publish the Welsh Government’s draft Budget on November 17.

Greater economic powers 

During the same session, Welsh Liberal Democrat MP David Chadwick called for greater economic powers for Wales, asking Mr Kinnock whether the UK Government would commit to further devolution during the current Parliament.

Mr Chadwick sought the transfer of responsibility for the Crown Estate and rail infrastructure, alongside greater borrowing powers, arguing that these would help Wales attract investment and create jobs. The Welsh Liberal Democrats said Mr Kinnock did not answer the question about further devolution.

Speaking afterwards, Mr Chadwick said: “For too long, Wales has been expected to grow its economy with one hand tied behind its back. We have enormous economic potential, but too often the decisions that determine our future are being made elsewhere.”

He added: “After years of economic stagnation, Wales cannot afford another Parliament of warm words and missed opportunities. The Labour Government must set out a clear timetable for delivering the powers Wales needs to build a stronger economic future.”

Free school milk

Elsewhere in Welsh Questions, Caerfyrddin MP Ann Davies urged Mr Kinnock to “check his facts” following claims from Labour MPs that the Welsh Government intended to scrap free school milk.

The existing school milk contract expires on March 31, 2027, and is subject to consultation. The First Minister told the Senedd on Tuesday that “milk continues to be delivered in schools as part of free breakfasts”.

Ms Davies also asked whether the UK Government would ensure that payments under the Welsh Government’s Cynnal child payment pilot would not reduce families’ other benefit entitlement.

Mr Kinnock said tackling child poverty was a “shared priority with devolved government”.

He added that the UK Government was “open to exploring the Welsh Government’s Cynnal pilot and we will continue to engage with them on the detail”.