More than £27bn to support public services has been set out by
the Welsh Government.
Finance Secretary 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 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.
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.”
Notes to editors
Notes to editors:
Timeline for the Draft Budget:
-
14 October 2025
Draft Budget published (stage 1). Outlines high-level
allocations by Main Expenditure Group (MEG) for each Welsh
Government department.
-
3 November
2025
Publication of Detailed Draft Budget (stage 2),
setting out spending plans at budget expenditure lines (Budget
Expenditure Line (BEL) details for each Welsh Government
department.
- 26 November
2025
UK Autumn Budget
- Late November
2025 Draft local
government settlement to be published (date TBC)
-
20 January 2026
Final Budget published.
Final local government settlement published
-
27 January 2026
Final Budget debate and vote
Vote on tax motions
Vote on local government settlement
In the Welsh Government's budget:
MEG stands for Main Expenditure Group. This is
how the Welsh Government categorises its spending allocations
across major portfolios like Health and Social Care, Education,
Transport, and more. Each MEG includes both
resource spending (everyday operational costs),
and capital spending (long-term investments such
as infrastructure).
BEL stands for Budget Expenditure
Line. These provide more detail about how money is
allocated at a detailed level.
Draft Budget documents are available at:
https://www.gov.wales/draft-budget-2026-2027
https://www.llyw.cymru/cyllideb-ddrafft-2026-2027
