Senedd passes budget after Welsh Labour makes deal with Plaid Cymru

All government departments and local authorities will get real-terms funding increases after Plaid agrees to abstain

Cardiff Bay’s Labour administration has managed to pass the Welsh budget after striking a deal with Plaid Cymru, releasing a real-terms funding increase for all government departments and local authorities before May’s Senedd elections.

With 100 days to go before the contest, in which polls suggest the pro-independence Plaid Cymru will end more than 100 years of Labour hegemony in Wales, the government has allocated £27.5bn in spending for 2026-2027, up £1.2bn on the previous fiscal year.