‘We acted to protect services and council tax bills, and to create a more sustainable position for a new government – Plaid Cymru leader Rhun ap Iorwerth MS
Plaid Cymru have secured £300m for councils and the NHS in Labour’s rollover budget.
Plaid Cymru had previously warned that Labour’s draft budget would deal a serious blow to Wales’ public services - pushing councils towards thousands of job losses, forcing steep rises in council tax, and leaving the NHS with a historically low funding uplift.
Local Authorities and the NHS will now receive substantially more funding because of Plaid Cymru’s intervention with local authorities set to receive an average uplift of 4.5% with all councils receiving increases above 4%, compared to Labour’s original 2.2%, and the NHS will see a 3.6% uplift compared to 2.1% previously.
Plaid Cymru will not vote for the budget but will abstain to allow it to pass.
Plaid Cymru Leader Rhun ap Iorwerth said that by allowing the budget to pass in return for the necessary increases in health and council budgets, Plaid Cymru ensured that Labour’s ‘catastrophic’ proposed cuts were avoided.
While this remained Labour’s budget to own, Mr ap Iorwerth said without Plaid Cymru stepping in, the next Welsh Government after May’s Senedd election would inherit far weaker foundations and that his party had “acted to protect services now” and to “create a more sustainable position for a new government”.
Mr ap Iorwerth said his party was ready to lead the Welsh Government after May with the ‘new leadership’ required to turn things around.
Plaid Cymru Leader Rhun ap Iorwerth said,
“Plaid Cymru always acts in the best interests of Wales and that is exactly what we are doing on the budget.
“Labour’s draft budget would have led to sky-high council tax, unprecedented job losses in our public sector, and a historically low settlement for the NHS. Plaid Cymru will simply not allow this to happen.
“We asked for two things - to protect public services and prevent unaffordable council tax rises, and to correct the inadequate NHS settlement caused by Labour’s rollover budget. We have secured both.
“By abstaining in return for the necessary increases in health and council budgets, Plaid Cymru ensures that Labour’s catastrophic proposed cuts are avoided.
“Councils and the NHS will now receive substantially more funding because of Plaid Cymru’s intervention. Local authorities will receive an average uplift of 4.5% with all councils receiving increases above 4%, compared to Labour’s original 2.2%, and the NHS will see a 3.6% uplift compared to 2.1% previously.
“This remains Labour’s budget to own but without Plaid Cymru stepping in, the next Welsh Government would inherit far weaker foundations. We acted to protect services and council tax bills and to provide a more sustainable position for a new government.
“If Plaid Cymru can achieve this in opposition, imagine what we can deliver with the opportunity to lead the next Welsh Government in May - real change and new leadership that puts the people of Wales first."
The Leader of Ynys Mon County Council and Plaid Cymru Group Leader on the WLGA, Gary Pritchard said,
“This is a welcome intervention and we’re grateful that Plaid Cymru has stepped in where Labour did not. The additional support won’t remove every pressure, but it prevents a disastrous outcome for our communities and gives councils the breathing space we urgently need.
“For years, councils have been forced to do more with less, and the point has come where that approach simply isn’t sustainable.
“What is needed now is long-term planning, fair funding, and leadership that works with us, not against us. Today’s announcement is a step in the right direction, and we look ahead to May as a real opportunity for new leadership and a fresh, constructive partnership for the future."
- ENDS -
EDITOR’S NOTES / NODIADAU I’R GOLYGYDD:
The final vote on the Welsh Government budget for 2026-27 is expected in January 2026. Plaid Cymru will abstain.
The Welsh Local Government Association had previously warned recently “social care, homelessness, education and workforce costs continue to rise faster than resources can keep up.”
The draft local government settlement was published two weeks ago. The auditor general, Adrian Crompton, said councils face a "real squeeze" as costs spiral for children's care and other services.
Following Plaid Cymru’s by-election win in Caerphilly, Labour no longer holds a majority in the Senedd. This means it cannot pass its budget without the support of other parties or two additional votes. A failure to pass the budget would mean the budget will pass at 75% of this year's level which could have a catastrophic effect on public services, with cuts and potentially major job losses.
