Plaid Cymru–Labour Budget Deal Secures Welsh Government Spending Plans with Increased Funding for Councils and NHS
A budget deal between Plaid Cymru and the Labour government has passed the Welsh government spending plans, adding £113 million for councils and £180 million for the NHS. Council tax increases remain possible but are expected to be lower than previously anticipated, with hopes that a 10% across-the-board hike will be avoided.
The £113 million allocation for councils is roughly equivalent to a 5% increase in council tax revenue for local authority budgets. Councils will receive an average 4.5% boost to the Welsh government grant, higher than the 2.7% initially proposed in the draft budget. Budget-setting is devolved to the 22 Welsh councils, each of which will set its own tax levels and budgets.
First Minister Eluned Morgan stated that the deal provides assurances on jobs and services and that public services will be protected next year. This agreement follows Labour’s minority government status and a Caerphilly by-election loss. Plaid Cymru's support reduces the risk of a defeat on spending plans in the upcoming January vote.
