Senedd to vote on £354m Welsh Government spending package

Mark Mansfield

A £354 million package of additional spending on the NHS, childcare and schools will be put to a Senedd vote tomorrow following an agreement between the Welsh Government and Welsh Labour on Additional Learning Needs funding.

The Supplementary Budget includes £145 million for NHS Wales, £55 million for childcare and an extra £60 million for Additional Learning Needs (ALN).

A further £15 million would extend free school meals to more secondary pupils from families receiving Universal Credit.

Cabinet Minister for Finance Elin Jones said: “The people of Wales have told us what matters most, and this Supplementary Budget delivers on those priorities.

“We are investing carefully so that every pound makes the greatest difference: shorter NHS waiting times, more childcare for families and better public services. We are also providing an extra £60m for Additional Learning Needs, so that every child gets the support they need to thrive.”

The NHS allocation comprises £100 million for waiting lists, £25 million to begin delivering surgical and diagnostic hubs, and £20 million to address maintenance backlogs.

The childcare package would expand provision for two-year-olds, meet demand for the existing Childcare Offer and fund buildings and facilities.

Other allocations include £40 million for school building maintenance, £20 million for social housing and £5 million for community facilities.

The revised proposals follow the defeat of the Government’s earlier supplementary budget on July 14, when ALN funding was central to the disagreement.

Ministers had offered an additional £40 million for ALN in the current financial year and each of the following two years, but Welsh Labour considered that insufficient.

The subsequent agreement provides £60 million extra this year. Schools will receive £44.8 million directly, with £11.2 million allocated to local authorities. The remainder will support further education and a long-term sustainability plan. Future ALN allocations have yet to be settled.

However, as Nation.Cymru reported yesterday, agreement on this year’s spending comes amid growing pressure on public finances.

Inflation

Cardiff University’s Wales Fiscal Analysis team estimates that updated inflation forecasts mean core NHS day-to-day spending would fall by around 1% in real terms, even after the £100 million waiting-list uplift. The wider £145 million NHS package also includes capital funding for facilities and maintenance.

Researchers estimate around £280 million in day-to-day funding remains available for allocation this year following the UK Budget and other adjustments. This includes previously unallocated money.

For 2027–28, they project broadly flat day-to-day financing after inflation, meaning increases for the NHS would require reductions elsewhere.

Tomorrow’s vote will be followed by publication of the Welsh Government’s Draft Budget on November 17, setting out its spending plans for the coming years.