Welsh Government passes budget after deal with Plaid Cymru

The Welsh Government has succeeded in passing its budget after securing a deal with Plaid Cymru.

The £27.5 billion budget for 2026/27 was approved in a vote at the Welsh Parliament on Tuesday.

Despite being the largest party in the Senedd, Labour does not have a majority and needed to reach an agreement with an opposition group in order to get the package through.

As part of its deal with Plaid Cymru, which saw the group abstain from the vote to allow the budget to pass, the Welsh Government agreed to allocate more funding for the NHS and local government.

The final package includes £112.8 million additional funding for local government and £180 million extra funding for health and social care.

It also contains a £116 million package of support for businesses over two years to help with the impact of changes to business rates.

First Minister Eluned Morgan said: “This budget puts the people of Wales first. We said we would put more money into public services and that’s what we’ve done.

“Today’s vote secures £27.5bn for people, communities and businesses across Wales – £1.2bn more than this financial year. It provides stability for key services and is underpinned by this Government’s commitment to fairness and delivery.”

Finance secretary Mark Drakeford said the budget would provide “security and stability” for public services, and thanked Plaid Cymru for taking part in “constructive” negotiations.

Speaking at the Senedd on Tuesday, Heledd Fychan, Plaid Cymru MS, said: “This is not an endorsement of the budget, but rather Plaid Cymru providing much-needed stability for public services and ensuring that we avoid a catastrophic situation had the budget not passed.

“This is not as good as it gets for Wales, and we recognise that many of our public services remain under huge pressure and that child poverty rates continue to rise.”

‘Pressing issue’

Sam Rowlands, Conservative MS, said: “This budget fails to address the most pressing issue of the day, which is our economy.

“It seems like a clear theme through the Welsh Government that the economy here in Wales is not a priority.

“I think that’s down to the fact that Labour and Plaid Cymru simply do not understand the needs of business and fail to realise that sustainable, long-term prosperity comes from businesses.”

The vote passed with 25 members in support, 13 against, and 14 abstaining.