Welsh MSs Criticize Welsh Government Budget as Full of ‘Empty Words’
In a scathing report, members of the Senedd in Wales have described the Welsh Government’s budget as being full of “empty words”. The finance committee highlighted that the budget lacks focus and clarity, calling for urgent changes to be made. The upcoming financial year’s budget, starting in April, is set to be voted on in early March. As the Labour party does not hold an outright majority, they will need support from at least one Senedd member from another party for the budget to pass. Without this support, there is a risk that Wales could miss out on £1 billion of funding.
One of the key concerns raised in the report is the impact of changes to National Insurance rules. Last year, UK chancellor Rachel Reeves announced that the amount employers have to contribute would increase from April. Various groups, including third sector and social care organisations, have warned of a significant adverse effect. Homelessness charity Llamau estimated an additional cost of £500,000, while Marie Curie is facing an extra bill of £260,000 in Wales alone. These organisations highlighted the urgent need for additional support to avoid a potential “cliff-edge scenario”.
The committee emphasised that Wales could be disproportionately affected by the National Insurance increases due to a higher proportion of lower-wage workers. Concerns raised by five other Senedd committees were also noted in the analysis of the budget. The committee called for greater transparency from the Welsh Government regarding funding received from the Treasury to offset the impact of the increase, with a commitment to pass this funding on to councils.
While the Welsh Government hailed the 2025-26 financial settlement as the “largest real terms funding increase since devolution”, the finance committee’s report painted a different picture. Despite promises of a brighter future, the committee found many areas of the budget to be lacking substance, referring to them as “empty words”. The ongoing cost of living crisis was highlighted as a critical issue that needs to be prioritised, with calls for programmes like the Baby Bundle scheme to be expanded across Wales.
Peredur Owen Griffiths MS, chair of the finance committee, expressed concerns in the report about the adequacy of the proposed budgets to support critical services and vulnerable individuals. He highlighted the impact of the National Insurance rise on employers, particularly in social care, and stressed the importance of continued support for those in need. The committee outlined recommendations for the Welsh Government to address the shortcomings identified in the budget proposals.
The budget is scheduled for debate on February 4 in a non-binding vote, with the final decisive vote set for March 4. As stakeholders and experts have raised serious concerns about the budget’s adequacy, the Welsh Government faces pressure to address these issues. The committee’s report serves as a wake-up call for policymakers to ensure that the budget aligns with the needs of the people of Wales and provides sufficient support for critical services.
Overall, the criticism from MSs underscores the importance of thorough scrutiny and transparency in budgetary decisions to ensure that public funds are allocated effectively and in the best interests of the Welsh population.