Plaid’s supplementary budget defeated after Labour withdraws support in Senedd showdown

Mark Mansfield

Plaid Cymru has suffered its first major parliamentary defeat since taking office after its supplementary budget was voted down in the Senedd when Labour refused to back the spending plans over a dispute involving teachers’ pay and additional learning needs (ALN) funding.

The £294 million package, which included extra funding to cut NHS waiting times, expand childcare and extend free school meals, was defeated by 49 votes to 44 after opposition parties united against the Welsh Government.

Without a majority in the Senedd, Plaid Cymru needed support from at least one opposition party to pass the budget.

Labour withdrew its backing after the NAHT and ASCL teaching unions criticised the Welsh Government over its pay offer and the level of funding for pupils with additional learning needs.

Speaking before the vote, Labour’s finance spokesperson Huw Thomas urged ministers to pull the budget.

“The Welsh Government need to withdraw it today, negotiate with those unions to get an agreement there and then bring it back to the chamber,” he said.

During a tense debate, Thomas also rejected suggestions that funding for ALN services would be delayed if the budget failed.

“If that’s accurate, then it’s pernicious, it’s vindictive and it’s going to lead to widespread industrial action,” he said.

Cabinet Minister for Finance Elin Jones said she was “flabbergasted” by Labour’s decision, accusing the party of abandoning negotiations after ministers had attempted to reach a compromise.

She argued the budget contained no cuts to existing services and would have provided additional investment in key priorities.

Following the defeat, she said: “The Supplementary Budget delivered £294m of extra funding to reduce NHS waiting times, expand childcare, and extend free school meals.

“It contained no reductions to existing services. It was about putting additional funding to work where it could make the greatest difference to the people of Wales.

“We remain committed to delivering these priorities and we will continue to engage constructively with other Senedd parties as we develop our spending plans in the Autumn.”

The budget represented Plaid Cymru’s first opportunity to reshape Welsh Government spending since ending Labour’s 27 years in power at May’s Senedd election.

Before the vote, ministers had attempted to secure Labour’s support by offering an additional £40 million for ALN this year and in each of the following two financial years. Labour had instead been pressing for £100 million of unallocated funding to be committed to ALN between now and next April.

The Conservatives and Reform UK also voted against the plans.

‘Bonkers’

Conservative Senedd leader Darren Millar said it was “bonkers” to bring a budget to the chamber without first securing enough support to pass it.

Reform’s Cai Parry-Jones said the budget failed to meet his party’s “red lines”, including reducing overseas spending.

Welsh Liberal Democrat leader Jane Dodds also opposed the budget, saying she wanted additional funding to prevent community hospital bed closures in Powys and address cross-border healthcare delays before she could support the spending plans.

The defeat leaves the Welsh Government facing fresh negotiations with opposition parties before revised spending proposals can be brought back to the Senedd later this year.