Further details of the Welsh Labour Government's £27bn Draft Budget showing increases in funding for all key departments have been set out by Finance Secretary Mark Drakeford...

Mr Drakeford said the departmental spending plans show the government's commitment to protecting vital public services, while maintaining stability ahead of the Senedd election.

Stage 2 of the Draft Budget 2026 – 27 sets out more than £800m of additional funding compared to last year's budget, with protected funding for health, education and other essential services.

Mr Drakeford said: “These spending plans show how we're protecting the services people rely on most. Every key department will see increased funding, providing the stability our public services need.

"We remain open to working with other parties in the Senedd to build an even more ambitious budget. My door remains open to those who share our commitment to passing a Welsh Budget that works for everyone."

The Draft Budget is being published in two stages. Stage one on October 14 outlined the high-level department allocations; whilst tage two (published on November 3) features more detailed departmental spending plans.

The draft local government settlement will be published later in November.

The Final Budget will be published on January 20, 2026, with the Senedd vote scheduled for January 27.

With local authorities predicting a £137m budget shortfall for schools in 2026/27, responding to the Welsh Government's draft budget, Laura Doel, national secretary at school leaders’ union NAHT Cymru, said: “This Budget will do nothing to rescue schools across Wales which are at crisis point when it comes to funding.

"This announcement does not show any significant increase for local government where schools get their core funding from, and the small additions for ALN (additional learning needs) and improving attainment levels are just a drop in the ocean.”