Welsh Government publishes Final Budget

The Welsh Government has published its Final Budget for 2026–27, setting out plans to provide an additional £1.2 billion for people, public services and businesses across Wales compared with the current financial year.

The budget includes £400 million of new allocations since the Draft Budget was published in October.

Ministers say the package is designed to provide stability for frontline services while supporting economic priorities during a period of ongoing financial pressure.

A central element of the Final Budget is £300 million in extra revenue funding for local government and the NHS.

This funding was secured through a budget agreement between the Welsh Government and Plaid Cymru, and is intended to help councils and health services manage rising costs and demand.

A further £100 million of revenue and capital funding has also been allocated to support key Welsh Government priorities. This includes investment in bus services, apprenticeships, further education, flood prevention measures and the maintenance of school buildings across Wales.

In total, the budget provides £27.5 billion for 2026–27.

Ministers have confirmed that every Welsh Government department will receive at least the same level of funding in real terms as in the current financial year, with additional uplifts to reflect inflation and pay awards.

The aim, the Government says, is to protect frontline services and safeguard jobs across the public sector.

Among the headline figures, local government will receive an additional £112.8 million, with all councils seeing funding increases of 4% or more.

Health and social care will receive an extra £180 million, taking the total revenue budget for the sector to more than £12.6 billion.

Businesses will also benefit from a £116 million package of support over two years to help offset the impact of the 2026 non-domestic rates revaluation.

Cooperation

Finance Secretary Mark Drakeford said the Final Budget reflected the importance of cooperation within the Senedd. He said the additional resources would support the services people in Wales rely on and recognise the vital contribution of the public service workforce.

“By working across the Senedd, we are providing certainty and stability for public services now, while ensuring the next Welsh Government has the resources it needs to deliver its priorities from day one,” he said.

Welsh Conservative Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: “Plaid and Labour’s budget stitch-up is a bad deal for Wales.

“A budget that contains funding for an ever-bloating bureaucracy, foreign aid, overseas offices, the Nation of Sanctuary plan, Senedd expansion and the creation of 36 more politicians is a budget that will not address the people’s priorities.

“Only the Welsh Conservatives can be trusted to cut waste so we can cut taxes and fix our vital public services.”

The Final Budget will be debated and voted on in Senedd Cymru on 27 January 2026.