Finance Secretary Mark Drakeford has welcomed the new UK Government’s first Budget and the additional £1.7bn it will bring to Wales over two years.
Speaking after the Chancellor’s statement, he said it was a first step towards “repairing the damage caused over the last 14 years by previous UK governments”.
And he said Rachel Reeves – the UK’s first ever female Chancellor – was listening to Wales by investing in coal tip safety and increasing Wales’ capital budget.
Finance Secretary, Mark Drakeford said:
“This is a Budget focused on fixing the foundations; rebuilding public services and creating a pathway of investment for growth.
“It marks the first steps in the right direction after 14 years of economic mismanagement by previous UK governments and the impact its decisions have had on people and communities.
“It is clear the Chancellor is listening to what Wales needs. I look forward to working with the UK Government on our other priorities, including securing fair funding for rail.”
Following today’s UK Budget, the Welsh Government’s settlement for 2025-26 is more than £1bn higher than it would have been under the previous UK Government. Taking 2024-25 and 2025-26 together, the settlement is around £1.7bn higher compared to what it would have been.
The UK Budget included the following for Wales:
- £1.7bn of extra funding for public services and capital investment in Wales.
- £25m to support the Welsh Government’s ongoing investment to make coal tips safe
- Moving to the next stage on the Celtic Freeport with designation of the tax sites
- Support for green hydrogen projects in Milford Haven and Bridgend
- Ended mineworkers pension fund injustice
- Increase in National Living Wage for tens of thousands of workers in Wales.
The Finance Secretary added:
“The additional funding is welcome and while the Chancellor’s Budget is designed to create growth the wider financial context is still difficult.
“We will be making our spending decisions as we develop our Draft Budget in the weeks ahead.”