The Welsh Government and Plaid Cymru have reached an agreement which will allow the budget for 2026-27 to pass and secures almost £300 million of additional investment in Wales’ public service.
There are three elements to the agreement:
- Additional funding for local government in 2026-27 – an extra £112.8 million, which provides an overall 4.5% increase to the local government settlement. All councils will receive increases above 4%.
- Additional funding for the health and social care budget – an extra £180 million, which, taken with the funding in the Draft Budget, is equivalent to a 3.6% increase in 2026-27.
- £120 million of capital funding will be available to the next government after the Senedd election to allocate.
The agreement will be reflected in the Final Budget, together with other allocations to be made by the Welsh Government, which do not form part of the agreement, which is published on 20 January 2026.
For further information please select the following link: Written Statement: Budget Agreement (9 December 2025) | GOV.WALES.