£27bn Draft Budget “just the start” - Finance Secretary

14 Oct 2025 02:09 PM

More than £27bn to support public services has been set out by the Welsh Government.

Finance Secretary Mark Drakeford described Wales’ Draft Budget 2026-27 as “just the start” as he urged political parties to work with the Welsh Government to make sure it’s passed in January 2026.

It provides a stable platform on which public services can plan in the run-up to the Senedd election.

All government departments in the next financial year will have at least the same amount of funding, in real terms, as they had this year.

Finance Secretary Mark Drakeford said:

The Draft Budget is the beginning of the budget process – not the end. It provides a firm foundation to help public services plan for the year ahead.

They can have confidence more can be done as we work towards the Final Budget in January. A lot will change between now and the vote in the Senedd at the end of January.

My door is firmly open to working with other political parties in the Senedd who share my belief that a more ambitious budget can be reached and that we have a collective responsibility to pass the Welsh Budget.

The Draft Budget is being published in two stages – today is the first outline stage, when the department allocations are published:

• Last year’s increased budget is being rolled over to this year, uplifted by a further 2%, which recognises the Office for Budget Responsibility’s forecast for inflation.
• We are restating the commitments made in the 2025-26 Budget and providing more than £800m of additional funding to Welsh Government departments.
• More than £27.1bn is being allocated in the Draft Budget – this is 98.6% of the funding available to the Welsh Government for 2026-27.
• The health, social care and early years department receives the largest revenue allocation at £12.4bn.
• There is no increase in Welsh Rates of Income Tax or the thresholds for Land Transaction Tax. The rates of Landfill Disposal Tax will increase by the forecast Retail Price Index.
• We are determined to recognise the particular circumstances of local government as we work together on a settlement which will protect jobs and frontline services, understanding the strict rules it has to comply with when making its budgets.

The next stage of the Draft Budget, which features more detailed departmental spending plans, will be published on 3 November. The draft local government settlement will be published later in November.

Mark Drakeford added:

We want to provide certainty and stability for our public services and to the people who rely on them. Our spending plans will continue to prioritise a healthier Wales, green jobs and growth, connecting communities, and opportunities for every family.