The Welsh Government has unveiled its Draft Budget for 2026–27, allocating £27.1 billion to support public services and provide a stable financial platform ahead of the Senedd election.
Finance Secretary Mark Drakeford described the budget as “just the start,” calling on political parties to work together to ensure its passage in January 2026. The budget honours the UK Government’s commitment to restore decision-making powers to Wales for funding previously provided by the EU.
Key Highlights from the Draft Budget include:
- £27.1 billion allocated, representing 98.6% of available funding
- All departments to receive at least real-terms funding equal to this year’s levels
- £800 million in additional funding for Welsh Government departments
- 2% uplift to reflect inflation forecasts from the Office for Budget Responsibility
- £12.4 billion allocated to health, social care and early years – the largest departmental share
- No changes to Welsh Rates of Income Tax or Land Transaction Tax thresholds
- Landfill Disposal Tax rates to rise in line with Retail Price Index
Unveiling the draft budget, Finance Secretary 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.
“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.”
The Welsh Government reaffirmed its commitment to protecting jobs and frontline services, recognising the financial pressures faced by local authorities. A draft local government settlement will be published later in November, following the second stage of the budget on 3 November, which will detail departmental spending plans.
The budget aims to provide certainty and stability for public services, enabling long-term planning and delivery of key priorities across Wales.
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