Plaid Cymru says UK Budget falls short of promises for Wales

“Check your facts!” - Plaid Cymru MPs have challenged Labour over the impact of the UK Budget on Wales.

Plaid MPs today (Wednesday, November 4) challenged the UK Labour Government during a heated Welsh Questions session in the House of Commons, citing independent analysis from Cardiff University's Wales Fiscal Analysis unit which warns that higher inflation will leave the Welsh Government facing difficult spending choices despite the Chancellor's Budget.

The analysis concludes that Welsh Government resource funding will remain broadly flat in real terms in 2027-28, which risks cuts of nearly 4% to Welsh public services, while the capital budget is set to shrink by £46 million in the next two years.

Researchers conclude that the 2026 UK Budget “looks like a missed opportunity” due to failing to “protect public services from rising inflation”.

Plaid Cymru argued the findings expose a growing gap between Labour's headline funding announcements and the reality facing Welsh public services, rail investment and support for Welsh families. During the session, Labour MPs made a number of attacks on Plaid Cymru, including claims that the Welsh Government intends to scrap free school milk.

The intervention prompted Ann Davies, MP for Caerfyrddin to tell the Secretary of State Stephen kinnock to "check his facts".

On Tuesday, the First Minister told the Senedd that "milk continues to be delivered in schools as part of free breakfasts".

Plaid Cymru Westminster Leader Liz Saville Roberts MP accused Labour of failing to deliver the change promised before the general election, arguing that the Budget falls well short of the "reset" voters were promised.

In the House of Commons, Ms Saville Roberts said: "The Prime Minister promised to end 40 years of Thatcherite ideology, but last week's Budget was a whimper, rather than a reset. A poll conducted after the Budget found that 60% of voters believe it merely tinkers around the edges.

"In Wales, we can see why. Real-terms cuts loom for public services, a shrinking capital budget and no meaningful movement on rail funding.

"Does the Secretary of State understand why so many people in Wales feel this Budget falls far short of the promises talked up by his Government?"

Meanwhile, Llinos Medi MP challenged ministers on Cardiff University's assessment that higher inflation will erode the value of the Welsh Government's settlement, leaving councils and public services facing difficult choices.

She said: "The Autumn Budget will deliver real-terms cuts to Welsh public services because it fails to compensate for higher inflation.

"Those are not my words, but those of Cardiff University, who say Wales now faces difficult choices, including cuts to local authorities like on Ynys Môn.

"Can the Secretary of State explain why this UK Labour Government is imposing cuts on Welsh public services?"

The Secretary of State responded: "I genuinely don't know where Plaid Cymru is getting these numbers from.”

Responding to claims made from the Government benches about school milk and Welsh Government funding, Ann Davies MP urged the Secretary of State to "check his facts" and pressed him on whether the UK Government would support the Welsh Government's Cynnal child payment pilot.

She said: "One would hope that any union would be a union of equals, with equal partners listening to each other with mutual respect.

"And may I respectfully ask the Secretary of State to check his facts as he has with us.

"Can the Secretary of State therefore confirm that the UK Government has listened to the Welsh Government on the Cynnal child payment pilot? Will he ensure that HMRC will not count this payment as income so that families do not lose out on the other benefit support they need?"

Stephen Kinnock responded that his Government had a "shared priority with devolved government to tackle child poverty", adding that the UK Government is "open to exploring the Welsh Government's Cynnal pilot and we will continue to engage with them on the detail."