Budget anxieties grow at Welsh Parliament as FM appeals for support

The Welsh First Minister has warned of cuts to frontline services if the devolved government does not succeed in passing a budget.

A draft one-year budget will be published in October and is set to be voted on by members before the Welsh Parliament election next May.

First Minister Eluned Morgan is already urging opposition members not to be “reckless” and has appealed for support from opposition groups.

When passing its last budget in March, the Welsh Labour government needed the help of an opposition member to get it through by a tight margin.

While Labour is the largest party in the Senedd, it does not have a majority, and an upcoming by-election could make the next budget vote even more difficult for the government.

The by-election was called following the death of Hefin Wyn David, who had served as Member of the Senedd for Caerphilly since 2016. 

While the seat has been held by Welsh Labour since the Welsh Parliament was first established in 1999, losing the by-election could weaken its majority even further.

Speaking at First Minister’s Questions, Baroness Morgan said: “There is an obligation on us, as a Senedd, to pass the budget because the consequences of not passing a budget are extremely serious for the people that we represent.

“I think this will be a test of how reckless other parties may be. I think there is a real, real threat that, if we fail to pass this budget, there will be a 25% cut to that budget.

“People need to really focus on what that might mean.”

The 2026/27 budget will increase departmental budgets by inflation, but will not introduce any major new spending commitments.

If the budget is not passed before the start of the financial year, then initially 75% of the budget for the previous financial year will be available.

Sam Rowlands, Conservative MS for North Wales, said: “The real reason why public services are struggling under inflationary pressure is because we have a Labour government here in Cardiff and a Labour government in Westminster.

“When will you admit that Labour have not got a grip of the economy here and Labour are failing people here in Wales?”

Addressing opposition groups, Baroness Morgan added: “We take our job seriously, you didn’t take your job seriously last year, you were willing to see that budget last year fail.

“It is too risky, it is too serious, for us to play politics with peoples’ lives.”

In March, the last budget passed with 29 members in support, 28 against, and one abstention.