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Draft budget: Plaid faces 'day of reckoning'

Tuesday, 10 December 2024 at 18:03

By Chris Haines - ICNN Senedd reporter

Senedd.tv

Mark Drakeford warned Plaid Cymru will face a "day of reckoning" on whether to block the Welsh Government's £26 billion spending plans for next year.

The finance secretary laid down a challenge to the Welsh Government's former Senedd pact partners after unveiling its 2025/26 draft budget which included an extra £1.5 billion for public services.

Prof Drakeford said he remains open to talks with Plaid about how the budget can be improved, with Labour one seat short of the majority needed to pass its spending plans.

But, addressing opposition benches, he warned: "If that's not the business you are in then, believe me, the people of Wales will see through you and the political games you think you can play with their future."

He added: "There's £253 million for local government and when you vote against the budget, you will be saying to those local authorities that you don't want them to have a single penny of it."

'This is a budget for hope'

"That's what serious politics is about...and that day of reckoning is coming your way."

The cooperation agreement between the Welsh Government and Plaid Cymru collapsed last year, and the party has said it intends to vote against this year's budget on March 4th.

Leading a debate on Tuesday, the former first minister told the Senedd the spending plans for the 12 months from April seek to protect the most vulnerable people in society.

He said: "It is a budget for priorities, it is a budget for growth, it is a budget that reminds people in Wales why, time after time, they have put their trust in a Labour government."

"A government which shares their values of trust, ambition, care for one another, and especially those who need that care the most. And that ... is why this is a budget for hope, a budget which sets out on that path to deliver a brighter future."

'Tax-and-spend frenzy'

Peter Fox, the Conservatives' shadow finance secretary, criticised Labour's "tax-and-spend frenzy" and raised concerns economic growth could slow.

Mr Fox said: "Both Labour governments just don't understand business," as he described national insurance increases as a tax on growth and a broken manifesto pledge.

He rejected "fictitious" claims of a £22 billion "blackhole" in the UK's finances left by the Tories, adding that the Welsh budget has increased due to tax rises and vast amounts of borrowing.

Mr Fox welcomed an additional £253 million for local government but cautioned it will still leave councils facing a "cliff edge" with financial pressures totalling £300m.

The former council leader said the Welsh Government has "finally seen sense", agreeing to offer retail, hospitality and leisure businesses the same business rates relief as in England.

'Drop in the ocean'

Heledd Fychan, for Plaid Cymru, warned the draft budget falls short of the funding Wales is owed following the lowest real-terms increase of all the devolved nations at 1.3%.

The party's shadow finance secretary reiterated calls for billions from HS2 and replacement of the "outdated" Barnett formula with a fairer model based on population need.

Ms Fychan said: "Without this, it is clear despite the uplift many sectors will be left broken and uncertain about the future: cuts will still have to be made, council tax will have to rise and the backlog across the NHS will remain incredibly high."

"Yes, the investment is welcome but it is a drop in the ocean of what's needed."

Ms Fychan, who represents South Wales Central, warned the budget will largely plug gaps created by Westminster and Labour mismanagement.

'Breeds cynicism'

Labour's Lee Waters said the opposition reaction "breeds cynicism in politics", accusing the Conservatives of complaining about revenue raising plans while demanding more money.

Pointing to a need for cooperation, the former minister added: "Plaid Cymru have already said before they heard the budget that they would be voting against this budget. So, how is that seriously engaging with the constitutional reality that we've all embraced?"

Responding to the debate, Prof Drakeford said: "I understand the Conservative party – the problem for them is so do the people of Wales."

Turning his ire to Ms Fychan's depiction of £1.5 billion extra as a "drop in the ocean", he told the debating chamber or Siambr: "Well...some drop and some ocean."

"She too asked for more money for local government, more money for the arts, she referred, of course, to the sainted Scots. There is a day of reckoning coming for Plaid Cymru, though, isn't there, on the budget?"

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