What does the Senedd draft budget say?

Local TV

We’re taking a look at what the Welsh Government’s recent draft budget says, but it is still likely to change as they need support from other parties in order for it to pass through the Senedd.

Transcript

00:00Welsh Ministers have set out their draft budget for 2026-2027, proposing how public money

00:07will be spent across the country over the coming year.

00:11The draft, now under discussions in the Senate, include plans for health, education, housing,

00:16transport and climate change, alongside provisions for local government and public services.

00:22The budget document shows overall spending of just over £25 billion, with modest increases

00:27in key services.

00:28Health and social care see additional funding aimed at improving waiting times and supporting

00:32community services, while education gets extra resources for school, children with special

00:37educational needs and mental health support.

00:41Housing initiatives include continued investment in social housing and support for first-time

00:45buyers.

00:46Climate change is another key focus, with funding earmarked for net-zero energy projects, electric

00:51vehicle infrastructure and urban green initiatives.

00:55Local government will see a 2.5% increase in funding, though councils have warned that

00:59this may not fully cover rising costs and service pressures.

01:02In response to the budget, the Welsh Conservatives have criticised the proposals, calling it business

01:08as usual, and arguing it lacks bold reforms or ambition.

01:11Their spokesperson said local services are facing inflationary pressure, but this budget doesn't

01:16provide councils with the resources that they really need to protect vital services.

01:21Plaid Cymru welcomed the emphasis on regional investment and community support, describing

01:26some of the measures as a step in the right direction for tackling inequalities across Wales.

01:30Meanwhile, the Liberal Democrats called for longer-term sustainability planning, urging ministers

01:35to focus on tackling housing shortages and environmental targets more aggressively.

01:42Other organisations have also weighed in.

01:44The Institute for Fiscal Studies highlighted that while the spending increases are positive,

01:48inflation and rising service costs could limit their real-world impact, warning that councils

01:52may still face difficult decisions about cuts or council tax rises.

01:56Meanwhile, the Welsh NHS Confederation said that additional funding for health services

02:01was welcomed, but called for clearer detail on how it will be allocated to reduce pressures

02:06in hospitals and community care.

02:09The Welsh Government need the budget to pass in the Senate, which could be difficult given

02:12their lack of a majority at the moment.

02:14They need other parties to support the budget, and the Welsh Conservatives have said they're

02:18open to conversations to get some of their plans into the budget in order for it to pass.

02:23As the budget negotiations continue between the Welsh Government and the Welsh Conservatives,

02:29will you ensure that growing the economy is the absolute central focus of that, and will

02:34you back our plan to scrap stamp duty in Wales to encourage more people to move back to Wales

02:38after they graduate?

02:42It's interesting when you look at the proportion of people in Wales who actually do not pay stamp

02:47duty currently.

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