More than £27 billion to support public services has been set out by the Welsh Government.
Finance Secretary Mark Drakeford described Wales’ Draft Budget 2026-27 as “just the start” as he urged political parties to work with the Welsh Government to make sure it’s passed in January 2026.
It provides a stable platform on which public services can plan in the run-up to the Senedd election.
All government departments in the next financial year will have at least the same amount of funding, in real terms, as they had this year.
The Draft Budget is being published in two stages – today (14 October 2025) is the first outline stage, when the department allocations are published:
Last year’s increased budget is being rolled over to this year, uplifted by a further 2%, which recognises the Office for Budget Responsibility’s forecast for inflation.
We are restating the commitments made in the 2025-26 Budget and providing more than £800 million of additional funding to Welsh Government departments.
More than £27.1 billion is being allocated in the Draft Budget – this is 98.6% of the funding available to the Welsh Government for 2026-27.
The health, social care and early years department receives the largest revenue allocation at £12.4 billion.
We are determined to recognise the particular circumstances of local government as we work together on a settlement which will protect jobs and frontline services, understanding the strict rules it has to comply with when making its budgets.
The next stage of the Draft Budget, which features more detailed departmental spending plans, will be published on 3 November 2025. The draft local government settlement will be published later in November.
Please visit the GOV.WALES website to read the announcement.