Welsh Government Reaches Deal with Labour on Mini-Budget

The Welsh government has reached a deal with the Labour party on its mini-budget, which had previously failed to pass.

Ministers announced that the Plaid Cymru-led administration has agreed to allocate an additional £60 million for children with additional learning needs (ALN). This agreement comes after Labour, which holds the opposition in the Senedd, rejected a £40 million per year deal spread across three years during acrimonious scenes in July.

Welsh Labour leader Ken Skates had initially demanded £100 million for the current year when the supplementary budget was last discussed. Following the new agreement, Skates stated that Labour had "managed to secure a significant cash injection for schools." He added, "While we still believe the Welsh government should be setting aside more for ALN in schools, it is a welcome first step in dealing with the need to better fund schools."

The original mini-budget proposed by Plaid Cymru included £100 million for the NHS to reduce waiting times, £55 million for childcare, and £40 million for school repairs.

First Minister Rhun ap Iorwerth commented on the development, saying, "This agreement reflects what can be achieved when parties across the Senedd work together." The supplementary budget is scheduled for debate in the Senedd on November 3.

Failure to pass the supplementary budget would have required the government to seek alternative funding for its proposed initiatives. The agreement ensures funding for ALN support, a key point of contention in the previous budget discussions.