A Budget for Growth and Renewal
“This is a budget for a brighter future, delivering an extra £1.5 billion for our public services and priorities, helping to put Wales firmly back on the path of growth after 14 difficult years. This is in stark contrast to the last couple of years when we have been forced to make some very difficult and painful decisions.”
“This Draft Budget offers a real opportunity to start to rebuild and reinvigorate our public services. It delivers increases to all departments and a significant boost in capital funding, meaning more investment in the very fabric of our nation – in our school and NHS estate, in housing and in public infrastructure.”
“This is a good budget for Wales. But it will take time to reverse the damage inflicted on Wales over 14 long years of neglect from previous UK administrations.”
– Mark Drakeford, Cabinet Secretary for Finance
Key Allocations in the Budget
- Health and Social Care: More than £600 million in extra funding to reduce waiting times, enhance mental health services, and strengthen women’s health initiatives.
- Affordable Housing: £81 million additional capital funding to build social rent homes, tackling homelessness and providing stable housing.
- Education and Local Government: Over £100 million more for education and a 4.3% increase in local government settlements to support schools, social care, and essential services.
- Transport and Infrastructure: £181.6 million to modernize rail services, including the transformation of the Core Valley Lines into a state-of-the-art Metro network.
- Road Maintenance: Creation of two new funds to repair potholes and maintain the road network.
- Planning Services: £3.7 million to digitize planning systems and expedite decisions.
Supporting Welsh Businesses
The Draft Budget delivers significant support for businesses:
- A cap of 1% on the non-domestic rates multiplier for 2025-26.
- Continuation of the 40% rates relief for retail, leisure, and hospitality businesses.
- A total of £335 million allocated to non-domestic rates support.
Tax Measures for Sustainability
Several tax measures aim to support businesses and encourage environmental sustainability:
- From 11 December 2024, higher residential rates of Land Transaction Tax for additional property purchases will increase by 1%, generating an estimated £7 million in additional revenue.
- An increase in the Landfill Disposal Tax to £126 (standard rate) and £6.30 per tonne (lower rate) to promote recycling and reduce landfill waste.
Moving Forward
“This budget shows the power of two governments, which share the same values, working together.”
– Mark Drakeford, Cabinet Secretary for Finance
The Draft Budget will be reviewed by Members of the Senedd, with a final vote expected in March 2025.