The new Plaid Cymru-led Welsh Government has published its first spending plans, a supplementary budget that adjusts the existing £27.5bn annual budget. This marks the first opportunity for the new administration to signal its priorities since the election.
Key Allocations and Priorities
Before the full budget detail was released, the government had already trailed significant spending: £145m for the NHS, £55m for childcare, and £15m to expand free school meals to secondary school pupils. New announcements include £20m to boost social housing supply, £40m to improve school buildings, and £5m for local buildings and shared spaces. The budget also provides £8m to continue the £1 bus fare pilot for young people and £2m to support a north-south bus service starting in early autumn.
New Initiatives: Cynnal Child Payment and Swimming Lessons
Another new announcement is £2m for a pilot of the proposed Cynnal scheme, a child payment for lower-income families, and £2m towards school swimming lessons. The government says these allocations will deliver "tangible impacts," including improved hospital waiting times and reduced cost-of-living pressures.
Funding Sources and Fiscal Context
The supplementary budget has an extra £455m in fiscal resource, comprising £372m from Barnett consequentials, £75m from government department transfers, and £7m linked to software licence spend. The assumption of £165m in-year borrowing remains unchanged, with no changes to devolved tax income. Allocations of £248m have been made from fiscal reserves.
Finance Minister's Statement
Finance minister Elin Jones said: "This government was elected with a clear mandate and is delivering on it responsibly and at pace. This supplementary budget demonstrates that commitment - spending with purpose, with every pound working harder for Wales. We have inherited significant pressures - in the NHS, in childcare, and across public services - and we are transparent about that. This Supplementary Budget concentrates resources on our clearest priorities: cutting NHS waiting times, expanding childcare, extending free school meals, and easing cost-of-living pressures for families. This is about more than new funding, it’s about beginning to reshape how our public services work after 27 years of a previous government."
Next Steps and Political Context
The supplementary budget will be voted on by all Senedd members on July 14. As Plaid Cymru leads a minority government, it will need support or abstentions from other parties for the budget to pass. The document emphasizes that the new government is committed to delivering "tangible impacts" despite a "fiscally challenging environment."
