Plaid Cymru ministers say they want extra cash for railways and public services in Wales ahead of the UK government’s Budget on Wednesday. Welsh Finance Minister Elin Jones called for the Chancellor John Healey to set out a spending plan that “finally treats us fairly”. The Budget announces Westminster’s tax and spending plans for the year ahead – and more cash given to English public services could result in extra spending in Wales where they are devolved. A UK government spokesperson said the chancellor would focus on giving households and businesses “a bit of breathing space where we can”.
Minimum wage set to rise but 18-20 year-olds will not get bigger increase Healey to shield low-income pensioners from income tax in the Budget Meanwhile, shoppers in one of Wales’ busiest markets told BBC Wales that once again the cost of living was their biggest concern before the spending announcement. Any extra spending for things in England that are controlled in Wales by the Welsh government – like healthcare, schools and roads – could trigger additional cash for the country. Elin Jones had asked the chancellor to bring forward £1bn of the £14bn the UK Labour government had promised for long-term rail funding in Wales. She also asked for extra money to help the Welsh government set its budget for 2027-28, which currently faces a real-term cut in day-to-day spending.
She previously claimed Wednesday’s settlement could be the worst for the Welsh government since the Covid-19 pandemic. Jones said Wales had been short-changed “for years”. “This UK Budget is the moment of truth, and we need the chancellor to act, not just acknowledge the problem,” she said. “Wales pulls its weight in the UK economy.
We contribute. Now we need the UK government to match that ambition with action and deliver a budget that finally treats us fairly.” There have also been calls from Labour MP Nia Griffith to give the Welsh government greater flexibility to borrow to fund investment projects. A senior Welsh Labour source said they had been “pressing really hard for fiscal flexibility”, along the lines of Griffith’s request. Ahead of Wednesday’s announcement, shoppers and traders at Swansea Market said the cost of living was their biggest concern.
“Will we be able to see through the winter without having to borrow money,” said shopper Louise. “It’s quite a worry.” Like others at the market, Louise admitted feeling “anxious” about the winter, despite having saved some money with her supplier. Help with energy costs was the top of many people’s lists of things they wanted help with in the Budget. Prices rose at the beginning of the month and typical bills are forecast to increase by 16% in January because of the conflict in the Middle East.
Dad-of-two Richard said his wage did not keep up with rising energy bills, leaving his family “penny pinching towards the end of the month”. “Things that we used to have as a bit of luxury are out of the question, days out with family cost a fortune,” he said. Rural homes that use heating oil have also seen a dramatic increase in costs. The chancellor had already announced he will remove import taxes to bring the price down a little.
Healey has talked about giving people “breathing space” from cost-of-living pressures, and revealed a package of small measures he is calling “everyday fixes” ahead of the Budget. Prime Minister Andy Burnham also wants to cut standing charges from gas bills. If further support is offered in the Budget, it would be likely limited and targeted to the poorest households. The cost of filling up cars soared this year as the conflict in the Middle East pushed up the price of oil.
Petrol prices hit a four-year high in September, and diesel has also shot up. The cost of transporting fruit and veg is one issue putting pressure on Gareth Evans, who is the fourth generation of his family to run the Get Fresh stall at Swansea Market. “It’s a struggle at the moment,” he said. “We get costs passed on to us from our suppliers.
“We’ve also got vans ourselves and we supply caterers and diesel is very expensive.” Emma, who runs a pet store, said her rising costs meant she has had to increase prices for customers, as “it goes down the line”. She believes many working people are “struggling to live now”. The chancellor is expected to freeze the planned increase in fuel duty in January. The rate was reduced by 5p by the previous Conservative government in 2022 and that measure has already been extended twice.
One of Elin Jones’ requests is for the UK government’s help for a flagship scheme to help address child poverty. The Welsh government is planning a trial scheme paying 15,000 children in families on universal credit £10 a week. The Cynnal scheme, external is modelled on the Scottish government’s child payment which helped to reduce child poverty in Scotland. Welsh ministers have asked the UK government to exempt the payments from tax and benefits calculations, so recipients do not see a cut to their income.
BBC Wales has been told discussions about the child payment are still ongoing, which suggests there will be no announcement on Wednesday. Burnham had previously said he was “open” to considering this, and it has already been granted to facilitate the scheme in Scotland. The chancellor will also announce how much the state pension will increase by next year. It looks likely to top £13,000 a year with the full, flat rate expected to increase by £488 a year in April due to the triple lock guarantee.
One thing that has already been announced is that pensioners who rely entirely on the state pension will be shielded from paying income tax, which usually kicks in at £12,570. The specific details will be announced in the Budget. On working age welfare, Healey has been rolling the pitch to prepare Labour MPs for potential cuts to the benefits bill, with a carefully scripted speech at this year’s party conference. There are reports that young people not in education, work or training may see big changes to their support, but that could be unveiled after the Budget when former Health Secretary Alan Milburn publishes his recommendations for reform.
Reform UK Senedd member Cai Parry Jones said his party “would stop using Welsh people as cash cows”, and would build an M4 relief road, scrap family farm tax, and “reward working people” by raising tax-free personal allowance to £15,000. Welsh Conservative Senedd leader Darren Millar called for the UK government to make money available for major road projects, including an M4 relief road, and more defence spending in Wales, calling for a “pro-union Budget deal”. David Chadwick, Welsh Liberal Democrat MP, said his party wanted a Budget that gave Welsh families “some much-needed breathing space”, calling for a 10p cut in fuel duty, a guarantee to bring down energy bills, and a temporary VAT cut for hospitality. The Budget comes ahead of the first substantive meeting between the prime minister and the first minister at the National Economic Council later this week, where devolution is expected to be discussed.
A UK government spokesperson said: “The chancellor is focused on giving households and businesses a bit of breathing space where we can. That’s why we have removed VAT from electricity bills, extended the 5p fuel duty cut and frozen rail fares.” Campaigners warn Welsh island could be target for nuclear attack Spotify uploads lyrics for Dolly Parton’s Welsh version of Jolene in Irish Shrine to Doctor Who spin-off character to be regenerated into piece of art
