Budget Approval Uncertain as Labour Rejects Deal
Doubts persist regarding the Plaid Cymru Welsh government's ability to secure approval for its supplementary budget in the Senedd next week, following Labour's rejection of a proposed agreement on Thursday night.
First Minister Emphasizes Labour's Decision
At the British Irish Council meeting in Guernsey on Friday, First Minister Rhun ap Iorwerth stated that it was "Labour's call" to approve the budget, describing the current proposal as "the offer" due to the government's tight financial constraints.
Plaid Cymru had proposed an additional £80 million over two years to support pupils with additional learning needs, while Labour demands £100 million in this supplementary budget alone.
Labour's finance spokesperson, Huw Thomas, confirmed the party's opposition to the budget "as it stands."
First Minister Appeals to Labour
Ap Iorwerth told BBC Wales that Labour should consider the impact of their stance on parents and local authorities, given the comprehensive nature of the package offered.
"Labour should reflect on why they would want to disappoint parents and local authorities… when there was such a comprehensive package on the table."
He added,
"It's their call now."
When asked if he would revisit Labour with an improved offer, Ap Iorwerth responded,
"We have this offer on the table, which is 10 times more than Labour was going to spend on additional learning needs. We are ready to move forward with this."
He acknowledged that the government had pushed the boundaries of its budget and was operating under significant financial restrictions.
Rhun ap Iorwerth was at the British Irish Council Summit on Guernsey
Labour Maintains Opposition
In response, Huw Thomas stated that the current offer was insufficient, confirming,
"As it stands we will be opposing it now."
He further noted,
"There are certain things that happen if the supplementary budget isn't passed, but we'll be available to come back and vote for it the following week if that's what Plaid wants to do, if they meet our demands."
Necessity of a Deal for Budget Approval
Plaid Cymru requires an agreement with other parties to pass its spending plans, as it does not hold a majority in the Senedd.
The Welsh government released its supplementary budget last month, which includes an additional £100 million aimed at reducing NHS waiting lists, £55 million for the expansion of childcare services, and £40 million allocated for school repairs.
Finance Minister Elin Jones outlined plans to allocate an extra £294 million to support the party's policies.
Of this, £247 million in day-to-day funding remains unallocated, with Plaid Cymru sources expressing awareness of upcoming financial pressures expected later in 2026 and into the following year, particularly within the NHS.
Context and Implications of the Supplementary Budget
A supplementary budget permits the government to adjust its annual budget plans during the fiscal year.
This year's situation is unique, as the initial annual budget was established when Labour controlled Cardiff Bay.
The supplementary budget was introduced by the Plaid Cymru-led administration following their victory in May's election, serving as an initial indication of the party's spending priorities and a test of its ability to negotiate with other parties.
Ministers retain the option to present a revised supplementary budget to the Senedd in the autumn.
Senedd Members are scheduled to vote on the supplementary budget on Tuesday.
