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Welsh budget approved – but what does it mean?

Sarah Taylor by Sarah Taylor
March 4, 2025
in Politics, US News, World
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Welsh budget approved – but what does it mean?
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The Welsh government’s budget has been approved by Senedd members in a vote on Tuesday.

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Every year, the government sets out its spending plans for Wales in funds devolved from the UK government, which then have to be agreed by a majority of members.

Labour has exactly half the number of seats in the chamber, 30 out of 60, since the last election in 2021.

After the election, Labour had entered into a co-operation agreement with Plaid Cymru which involved the Welsh nationalist party supporting the government on a number of key policies.

But the deal came to an abrupt end last year due to concerns about a controversial £200k donation to then first minister Vaughan Gething and government delays to policies such as council tax reform.

So without their coalition partners, Labour were looking to borrow a vote to get them over the line.

The final budget vote passed on Tuesday, 29 votes to 28, after the Labour government struck a deal with the Welsh parliament’s sole Liberal Democrat member, Jane Dodds, who agreed to abstain.

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In exchange for her abstention, the Welsh government announced a number of investments, including a £1 bus ticket pilot scheme for under 21s.

The agreement also includes a commitment to ban greyhound racing in Wales.

‘Demanding better’

The £26bn budget has allocated funding for areas such as health, housing and education for the next financial year, taking Wales into 2026 when voters will next go to the polls to vote for their representatives in the Senedd.

Welsh finance secretary Mark Drakeford said: “Passing this budget is a significant moment for Wales – it unlocks a real uplift in funding for the services that matter most to people, after some very tough years.

“We have secured a financial package that will strengthen our NHS, reduce waiting times, support schools and help communities across Wales thrive, making a real difference to people’s lives.”

Welsh Lib Dem leader Ms Dodds said she agreed with “those who are demanding better from their government”, but said she was not prepared to see Wales’s public services “lose £5bn worth of funding” if the budget vote failed.

The Welsh Conservatives‘ shadow finance secretary Sam Rowlands said his party “would instead focus on putting money back into Welsh people’s pockets”, including the creation of a Welsh Winter Fuel Allowance.

Plaid Cymru’s finance spokesperson Heledd Fychan said Wales needed “fresh thinking” and that her party had “long-term solutions to improve [the] NHS” and “grow [the] economy”.

Read more:
Senedd members could lose their seats under new plans
Could Wales be about to see seismic political shift?

Follow our channel and never miss an update.

At the next election, the number of Senedd members will increase from 60 to 90, with a more proportional voting system adopted.

And with just over a year to go, politicians of every party will be keener than ever to make their case for Wales.

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