The Welsh Government will today publish its Final Budget for 2026 to 27, setting out £27.5bn of funding for people, public services and businesses across Wales.
The budget represents an increase of £1.2bn compared to 2025 to 26 and will confirm how funding is allocated across government departments ahead of the next Senedd election.
The final package follows the Draft Budget published in the final quarter of 2025, which Finance Secretary Mark Drakeford described at the time as “just the start”, as he urged cross party cooperation to ensure the budget was agreed.
When the draft plans were unveiled, the Welsh Government set out more than £27bn to support public services, providing what it said was a stable platform for planning during a period of ongoing economic pressure.
Under the draft proposals, all Welsh Government departments were set to receive at least the same level of funding in real terms as the previous year. Last year’s increased budget was rolled forward and uplifted by a further two percent, reflecting inflation forecasts from the Office for Budget Responsibility.
More than £800m of additional funding was outlined for Welsh Government departments, with £27.1bn allocated in total, accounting for almost all of the funding available to the Welsh Government for 2026 to 27.
Health, social care and early years received the largest share, with a proposed revenue allocation of £12.4bn, underlining the continued pressure on frontline services.
The draft budget also confirmed there would be no increase in Welsh Rates of Income Tax or changes to Land Transaction Tax thresholds. Landfill Disposal Tax rates were set to rise in line with the Retail Price Index.
Local government funding was highlighted as a key priority, with ministers acknowledging the financial challenges councils face and committing to work with them to protect jobs and frontline services while operating within strict budget rules.
The Draft Budget was published in two stages, with initial departmental allocations announced in October, followed by more detailed spending plans released on 3 November.
Today’s Final Budget will confirm whether those commitments remain intact and set the financial direction for Wales heading into the 2026 to 27 financial year.
