Lib Dem leader strikes deal with Welsh Government on Budget

Emily Price 

The Senedd's only Liberal Democrat Jane Dodds has struck a deal with the Welsh Government to pass the upcoming draft Budget.

The details of the agreement between Welsh ministers and the Leader of the Welsh Liberal Democrats was revealed on Thursday (20 February).

Ms Dodds has agreed to abstain on a vote for the £26bn spending plans for next year in exchange for over £100m worth of extra funding for public services.

[mid-content-banner]

Key elements of the budget agreement include:

• an extra £30m to deliver the childcare element of the Flying Start programme to all two-year olds across Wales,
• £30m more for social care to target delayed discharges in our hospitals,
• an extra £5m to tackle water pollution in our rivers and seas,
• £15m to fund a pilot scheme for young people aged 21 and under to only pay £1 for a single bus fare in Wales,
• more funding for councils across Wales.

With Welsh Labour having only 30 of the 60 Senedd seats, it needs the support of one more MS to get the 2025-26 Budget passed.

Plaid Cymru and the Welsh Conservatives have both said they plan to vote against the 2025-26 Budget plans.

If the Welsh Government fails to pass a Budget Wales will lose around £5bn in funding.

[lower-mid-content-banner]

Leaked

The Welsh Lib Dems say the impact of not passing a Budget was "too damaging" for them "not to put party politics to one-side" and work with the Welsh Government.

In recent weeks, Welsh Labour has been discussing with Ms Dodds what concessions it could make to secure her vote.

Earlier this week, an email leaked to Nation.Cymru saw Ms Dodds set out her position on the Budget vote.

Some Liberal Democrat members were unhappy with her willingness to, as they saw it, prop up Labour as well as the fact that Ms Dodds informed members rather than consulted them.

In the email, Ms Dodds stated: "Like many, I do not believe that Wales is getting a fair deal from the UK Government. Labour’s failure to devolve the Crown Estate, or secure additional funding for Wales as a result of HS2 construction in England, demonstrates that the status quo is not working for Wales.

"These two measures would be straightforward for the UK Government to implement, as they have already done for Scotland. Despite my frustrations, I believe it is crucial that we, as Welsh Liberal Democrats, continue to argue for a better deal for Wales."

However, there was no sign of anything in the Budget deal in relation to HS2 funding or the devolution of the Crown Estate to Wales.

Jane Dodds said: "I’m proud that this agreement will take real action on key Welsh Liberal Democrat priorities of improving social care, increasing the provision of free quality childcare and tackling river pollution.

"Today’s announcement is a positive first step in delivering the ambitious change the Welsh Liberal Democrats want to see.

"We knew entering into this process that we weren’t going to fix decades of government failures at both ends of the M4 in a single budget, but we have tried to put party politics to one-side in order to get a better deal for people across Wales.

"I hope most people would say that more money to tackle Wales’ social care crisis, improve childcare and clean up our rivers are the types of actions they want their politicians to take.

"But the sad truth is, despite it being a better settlement than the Conservatives have delivered in recent years, I believe that Wales is still being let down by Labour in Westminster. Wales needs a fairer deal from the UK Government and I think it’s urgent that they devolve the Welsh Crown Estate and deliver additional funds as a result of HS2 consequential.

"Even with the positive changes in the budget agreement, the failure to have a fair deal from Labour in Westminster means it’s impossible for the Welsh Government to deliver the kind of public services people across Wales deserve.

"I agree with those who are demanding better from their Government, it’s right they want a better future, but unlike other political parties, I wasn't willing to see our public services loose £5bn worth of funding, therefore, I will be abstaining in the budget vote on 4th March."

Common ground

Cabinet Secretary for Finance Mark Drakeford said: "This agreement demonstrates what can be achieved when the Welsh Government and Members of the Senedd work together constructively on areas where we have common ground. The additional investment will make a real difference to communities across Wales, particularly in rural areas.

"Taken together with the extra £1.5bn announced in our Draft Budget, this is a positive package of additional funding for every part of Wales, which will have a significant impact on our public services."

The agreement also includes funding for feasibility studies to support the development of the Wyeside Arts Centre, in Builth Wells; the North Powys Wellbeing Campus, in Newtown; safety measures at the Pont y Bat junction on the A470 and the refurbishment of Brynamman Lido.

While welcoming the funding allocated for Wyeside Arts Centre and making the Pont y Bat crossroads safer, Conservative MS for Brecon and Radnorshire James Evans says he cannot support a budget that fails to prioritise healthcare, education and farmers in his constituency.

He said: "Jane Dodds has chosen to back a budget that looks good on her next leaflet rather than tackling the fundamental challenges we face in Brecon and Radnorshire.

"This is yet another example of political posturing rather than real leadership. After initially saying there was ‘no deal at all’, Jane Dodds has now agreed to support a Welsh Labour Government that is neglecting the people of our area."

Welsh Conservatives have been heavily critical of the Welsh Government's spending plans.

The party is opposed increased spending on ‘central services and administration’ as well as significant spending on agency staffing in the Welsh NHS.

Shadow Cabinet Secretary for Finance, Sam Rowlands MS said: "Labour’s budget will not fix Wales. It will not address the people’s priorities, with woeful outcomes like excessive waiting lists and low educational standards speaking for themselves.

"Whether it’s Plaid or the Lib Dems propping Labour up, it is clear that only the Welsh Conservatives have consistently opposed Labour’s damaging spending plans."