Welsh Government confirms final Budget for 2026–27

The Welsh Government has published its final Budget for 2026–27, setting total spending at £27.5 billion ahead of the Senedd election on 7 May 2026. The budget reflects updated forecasts and a December agreement with Plaid Cymru, which includes £180m for Health, £112.8m for Local Government, and £120m in capital funding reserved for the next administration.

Compared with the draft Budget, overall spending has risen by £400 million, with major increases directed to health, local government, education, transport, and climate change portfolios. However, these have not addressed inflation and pay pressures, and we would look for clarity on how updated OBR forecasts had been incorporated.

PCS Cymru welcomes progress made, however we remain clear that there are many areas of the Welsh public sector and wider society that remain hugely underfunded.

The Welsh culture sector remains amongst the lowest funded in Europe. We had lobbied Welsh Government to take the opportunity of the supplementary budget to step in and reverse the cuts, to provide extra funding to the National Library and Amgueddfa Cymru as they deal with the consequences of the 10.5% cuts imposed on the National Library and Amgueddfa Cymru.

Wales remains the poor relation in terms of financial equity in the UK as a result of the well-documented failings of the Barnet Formula.

This budget did not address deep rooted problems in health, local government or rural communities, the importance of investing in the foundational economy and supporting the workforce underpinning public services. And Wales continues to face structural underfunding from Westminster and insufficient long-term planning by the Welsh Government.

Until Wales receives fair funding that reflects the needs of its population we will remain in a poverty loop that continuously robs one area to sustain another.

Marianne Owens, chair of PCS Cymru executive committee said: "We firmly believe that another way is possible as we have recently set out in our 2026 Senedd election manifesto. 

"PCS believes that Wales deserves better and we will continue to campaign and fight for the properly funded Wales that we all want and deserve to live in."