Welsh Government sets out spending priorities in first supplementary budget

Nation.Cymru staff

The Plaid Cymru-led Welsh Government will today publish its first supplementary budget since taking office, setting out how additional funding will be directed towards its early priorities for health, childcare, education and housing.

The Budget for 2026-27 builds on the spending plans approved by the Senedd in January and makes a series of targeted allocations from reserves, while also restating budgets to reflect the responsibilities of the new ministerial team.

Cabinet Minister for Finance Elin Jones will present the budget to the Senedd later today, describing it as an expression of the new government’s priorities and values and setting out its approach to spending for the year ahead.

The supplementary budget marks the first significant revision to Welsh Government spending plans since Plaid Cymru formed a government following May’s Senedd election.

Ministers say the additional funding will support commitments to reduce NHS waiting times, expand childcare provision, extend free school meals to secondary school pupils whose families receive Universal Credit, and increase investment in social housing and schools.

Among the measures already announced are £145m for the NHS, including £100m aimed at reducing waiting lists, £25m for new surgical and diagnostic hubs and £20m for essential maintenance across the NHS estate.

First Minister Rhun ap Iorwerth said the health funding demonstrated the government’s determination to improve services for patients while investing in the long-term future of the NHS: “This additional funding sends a clear signal that tackling waiting lists is an urgent and immediate priority for this new Welsh Government.

“But we are not content to just bring down waiting times in the short term – we want to keep them down, so that patients don’t have to wait in pain or discomfort. By investing in new surgical and diagnostic hubs, which will transform specialist treatments, we are putting the infrastructure in place so that our NHS is fit to treat more patients now and into the future.”

The budget also includes £55m to accelerate the expansion of funded childcare.

The funding will support the rollout of 12.5 hours of childcare a week for two-year-olds and help childcare providers increase capacity. Of the total, £10m has been earmarked for expansion and improvement works at childcare settings.

The announcement comes as Wrexham joins Swansea, Merthyr Tydfil and Newport in offering funded childcare to all two-year-olds in their areas.

The Welsh Government has pledged to extend childcare provision further over time, with a long-term ambition of providing 20 hours of funded childcare a week for children aged between nine months and four years.

Deputy First Minister Sioned Williams said the investment would help more families access affordable childcare while supporting children’s development.

She said: “This investment shows we are accelerating our commitments to the families of Wales.

“Childcare costs in Wales are the highest in the UK and I am determined to help families all over Wales, while also supporting children’s development.”

Other measures already announced for inclusion in the supplementary budget include £15m to extend free school meals to secondary school pupils in households receiving Universal Credit, removing the current earnings threshold, as well as additional investment in schools and social housing.

Reforms

The Welsh Government said the supplementary budget is intended to make early progress on key commitments while laying the groundwork for longer-term reforms.

Full budget documentation, including the explanatory note, budget motion and detailed spending tables, will be published alongside Elin Jones’ statement.

The supplementary budget will be debated and voted on by Senedd members on July 14.