Budget agreement secures extra £100m for public services

The details of the agreement, between the Welsh Government and Jane Dodds MS, Leader of the Welsh Liberal Democrats, can be revealed today as the Welsh Government publishes its Final Budget 2025-2026 in the Senedd.

Key elements of the budget agreement include:

• An extra £30 million for childcare, which will ensure funding for the Flying Start programme to deliver childcare to two-year-olds across Wales. The hourly rate will also be increased to £6.40 an hour to further support childcare providers.
• £30 million more for social care to target delayed hospital discharges and provide more care and support in local communities to prevent people being admitted to hospital unnecessarily.
• A guaranteed 3.8% funding floor for all local authorities, costing £8.24 million. This will increase funding available to 9 local authorities – Monmouthshire, Powys, Gwynedd, Vale of Glamorgan, Flintshire, Pembrokeshire, Ynys Mon Ceredigion and Conwy.

The agreement includes a commitment to move to ban greyhound racing in Wales. And it includes further funding for local government:

• £5 million to improve playgrounds and play facilities for children.
• An extra £5 million to support leisure centres to be more energy efficient.

For transport:

• £15 million to fund a pilot scheme for young people aged 21 and under to pay only £1 for a single bus fare in Wales.
• Extra support to create a £120 million local authority road and pavement repair scheme.
• Funding to restore the fifth train service on the Heart of Wales line.
• £500,000 capital funding to improve toilets on main roads across Wales.

For environment and rural affairs:

• £5 million extra to tackle water pollution in our rivers and seas.
• An extra £10 million for rural investment schemes.

The agreement also includes funding for feasibility studies to support the development of the Wyeside Arts Centre, in Builth Wells; the North Powys Wellbeing Campus, in Newtown; safety measures at the Pont y Bat junction on the A470 and the refurbishment of Brynamman Lido.

Cabinet Secretary for Finance Mark Drakeford said:

This agreement demonstrates what can be achieved when the Welsh Government and Members of the Senedd work together constructively on areas where we have common ground. The additional investment will make a real difference to communities across Wales, particularly in rural areas.

Taken together with the extra £1.5 billion announced in our Draft Budget, this is a positive package of additional funding for every part of Wales, which will have a significant impact on our public services.

Jane Dodds MS, Leader of the Welsh Liberal Democrats, said:

This agreement is a positive step in making Wales the fairer and more prosperous country I want it to be.

I’m delighted we have secured funds needed to deliver my party’s key priorities of improving social care, increasing quality childcare, tackling water pollution, improving roads and public transport and protecting vital council run services.

I’m really pleased the Welsh Government is taking this step to offer universal free childcare to families with children aged two to four across Wales. This is important to tackle child poverty and to help parents get in to work to help with the cost-of-living crisis.