Government facing political test over spending plans

The Welsh Government has unveiled details of the £27bn draft budget as ministers face a significant political test to get the spending plans passed by the Senedd.

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Finance secretary Mark Drakeford provided an update on the 2026/27 draft budget, which includes an extra £800m, setting out line-by-line allocations for public services.

The former first minister has brought forward a “rollover” draft budget, broadly rising by about 2% in line with inflation, in an effort to cut a deal with opposition parties.

Last year’s spending plans were narrowly agreed after ministers struck a deal with Jane Dodds, the leader of the Liberal Democrats in Wales and the party’s sole Senedd member.

But, following Labour's defeat in the Caerphilly Senedd by-election on October 23, the Welsh Government needs the support of at least one other Senedd member this year.

Failure to pass the budget by April would result in spending plans automatically reverting to 75% of last year’s - rising to 95% if still not agreed by July.

Prof Drakeford has warned such a scenario could cost Wales up to £7bn, leading to thousands of job losses.