Welsh Government publishes Final Budget

Daniel Bevan - Editor

Subscribe to the Businessin Wales daily newsletter for FREE here.

The Welsh Government has unveiled its Final Budget for 2026-27, promising £1.2bn more for people, public services and businesses across Wales compared with the current financial year.

The spending plans, which total £27.5bn, include £400m of new allocations since the Draft Budget was published in October, following a budget agreement between the Welsh Government and Plaid Cymru.

Of this, £300m of additional revenue funding will go to local government and the NHS, while a further £100m of revenue and capital funding will support priorities such as bus services, apprenticeships, further education, flood prevention and the maintenance of school buildings.

Every Welsh Government department will receive at least the same level of funding in real terms as this year, with uplifts for inflation and pay designed to protect frontline services and safeguard jobs.

Among the headline figures, local government will receive an extra £112.8m, with all councils set to see increases of 4% or more.

Health and social care will receive an additional £180m, taking the total revenue budget for the sector to more than £12.6bn.

Businesses will be supported through a £116m package over two years to help offset the impact of the 2026 non-domestic rates revaluation.

Finance Secretary Mark Drakeford said: “This Final Budget provides extra resources to support the services Wales relies on.

“Every department has been protected with at least the same funding in real terms as this year, including extra funding for inflation and pay – recognising the vital work of our public service workforce.

“By working across the Senedd, we are providing certainty and stability for public services now, while ensuring the next Welsh Government has the resources it needs to deliver its priorities from day one.”

The Final Budget 2026-27 will be debated and voted on in the Senedd on 27 January 2026.