By Eniola Amadu
The Welsh Government has planned to hike day-to-day expenses on the majority of its public services by 2% in its plans for the 2026-2027 fiscal year.
The draft budget for the next financial year shows more increase in the NHS, local government and housing allocation, with rises of 2.5% and 2.3% respectively.
Finance Minister, Mark Drakeford stated that the propositions reveal that “we’re protecting the services people rely on most”.
The Office for Budget Responsibility hopes that inflation will be nearer 2% next year, down from the current 3.8%.
However, the Welsh Labour administration due to the loss of a seat in the Caerphilly by-election, does not have enough senedd members to approve a budget without securing support from at least two opposition members.
Minister Drakeford expresses his party’s will to liaise with other parties to secure the budget saying “we remain open to working with other parties in the Senedd to build an even more ambitious budget.”
He added ththatevery key department will see increased funding, providing the stability our public services need.”
Funding for the Welsh Government from devolved levies and the UK government’s block grant is set at £27.6bn for 2026-27 with almost £380m of this remaining unallocated.
Over 75% of the Welsh government’s budget is directed towards health, social services, housing and local government.
The transport budget will increase by 4.3%, although it still accounts for only a small share of overall spending. Climate change and rural affairs will receive a 3.1% increment, while education is set for a 2.2% increase.
