£1.6bn extra unlocked for Welsh public services as budget passes
£1.6 biliwn yn ychwanegol ar gael ar gyfer gwasanaethau cyhoeddus Cymru wrth i'r gyllideb gael ei phasio
The Senedd has approved the Welsh Budget 2025-26, releasing £1.6bn of extra funding for the NHS, councils, schools and public transport, benefitting people and communities throughout Wales.
In total, the Budget sets out £26bn of spending commitments with substantial increases across all government departments.
More than £3bn of capital funding will be allocated in 2025-26 to upgrade vital equipment in the NHS and schools and to build new homes, modernise public transport and support economic growth.
Cabinet Secretary for Finance Mark Drakeford said:
"Passing this budget is a significant moment for Wales - it unlocks a real uplift in funding for the services that matter most to people, after some very tough years.
“We have secured a financial package that will strengthen our NHS, reduce waiting times, support schools and help communities across Wales thrive, making a real difference to people’s lives.”
Key investments include:
- More than £600m extra for the NHS and social care, supporting efforts to reduce waiting times and improve mental health and women's health services.
- An extra £50m to expand Flying Start childcare for two-year-olds throughout Wales and increase the hourly rate to £6.40.
- £81m extra to build social housing to tackle homelessness.
- More than £100m boost to education.
- £181.6m to improve rail services, including modernising the Core Valley Lines.
- £15m to fund a £1 single bus fare scheme for young people under 21.
- Funding to create a £120m local authority road and pavement repair scheme.
- £25m for a road improvement fund to improve the strategic road network which will enable us to improve 100km of the network and reduce and prevent potholes.
- £335m support for businesses, including a sixth year of rates relief for retail, leisure and hospitality businesses.
- A guaranteed 3.8% funding floor in the local government settlement.
The budget will come into effect from April 2025.
Notes to editors
Final budget vote took place on 4th March.
Increased investment – allocations by Ministerial portfolios
Health, Social Care and Early Years receives an additional £496.5m revenue funding (4.3%) and £180m of capital funding (41%).
Housing and local government – receives an additional £288.7revenue funding (5.6%) and £125m of capital funding (11.6%).
Education – receives an additional £84.6m revenue funding (4.9%) and £28m of capital funding (8.1%).
Transport – receives an additional £79.9m revenue funding (13.7%) and £51m of capital funding (10.8%).
Climate Change and Rural Affairs– receives an additional £48.8m revenue funding (9.2%) and £75m of capital funding (32.1%).
Economy, Energy & Planning – receives an additional £23.6m revenue funding (5.3%) and £122m of capital funding (59.3%).
Social Justice – receives an additional £6.5m revenue funding (4.9%) and £3.4m of capital funding (23%).
Every department will benefit from an increase in revenue of 4.3% to 13.7%.
Figures are compared to the 2024-25 Final Budget restated revised baseline.