UK Budget ‘first step to repair the damage of the last 14 years’ – Mark Drakeford

Finance Secretary Mark Drakeford has welcomed the new UK Government’s first Budget, hailing the £1.7bn in funding for public services and capital investment it will bring to Wales over two years.

In addition Rachel Reeves pledged £25m to support the Welsh Government’s ongoing investment to make coal tips safe and support for green hydrogen projects in Milford Haven and Bridgend was also confirmed.

Speaking after the Chancellor’s statement today, Mr Drakeford said the Budget was a first step towards “repairing the damage caused over the last 14 years by previous UK governments”.

Listening to Wales

And he said Rachel Reeves – the UK’s first ever female Chancellor – was listening to Wales by investing in coal tip safety and increasing Wales’ capital budget.

He said: “This is a Budget focused on fixing the foundations; rebuilding public services and creating a pathway of investment for growth.

“It marks the first steps in the right direction after 14 years of economic mismanagement by previous UK governments and the impact its decisions have had on people and communities.

“It is clear the Chancellor is listening to what Wales needs. I look forward to working with the UK Government on our other priorities, including securing fair funding for rail.”

Following today’s UK Budget, the Welsh Government’s settlement for 2025-26 is more than £1bn higher than it would have been under the previous UK Government. Taking 2024-25 and 2025-26 together, the settlement is around £1.7bn higher compared to what it would have been.

The Finance Secretary added: “The additional funding is welcome and while the Chancellor’s Budget is designed to create growth the wider financial context is still difficult.

Draft budget

He added: “We will be making our spending decisions as we develop our Draft Budget in the weeks ahead.”

Plaid Cymru leader Rhun ap Iorwerth rejected claims that the budget was good news for Wales, however.

He said: “People will not be fooled by the Chancellor’s claim that this is a Budget that spells good news for Wales.

“The Welsh Budget for this year is already worth £700m less in real terms whilst our councils face a shortfall of more than half a billion.

“First Minister Eluned Morgan claimed that she was “pushing hard for HS2 cash” but it’s now clear that she didn’t push hard enough. This was the first test of the First Minister’s leadership – a test which she has failed.

“As England is promised further rail electrification, Wales is still saddled with twentieth century infrastructure – an injustice that Labour has no interest in addressing.

“Our nation is still being short-changed to the tune of billions. No end to the unfair Barnett funding formula, no U-turn on the winter fuel allowance, no plan to scrap the cruel two-child benefit cap, and no let-up for the small businesses already being hit by Labour in Wales.

“After 14 years of Tory austerity, Wales deserves so much better than this.

“The Chancellor had an opportunity to chart a new course but instead, she has blown a gaping hole in the promise that having two Labour governments working together would benefit the people of Wales.”