Health to get £600m boost tophyper

Healthcare in Wales will be provided with hundreds of millions of pounds extra next year to tackle record high waiting times.

The Welsh Government says there will be an extra £1.5bn to spend on public services in its £26bn budget for next April.

All departments will see an increase – with transportation receiving the largest percentage of the increase in part to pay for the Valley Heads Road development.

Finance Minister Mark Drakeford said the budget was a “real opportunity” to “revitalize our public services”.

The Welsh Conservatives have warned that “hundreds of millions” could return to the Treasury in increases in National Insurance costs.

Plaid Cymru accused the government’s plans of being “disappointing” and “unambitious”.

The Welsh Government will need someone from one of the Sinéd opposition parties to support it – with talks continuing with Liberal Democrat Jane Dodds.

Most of the extra money goes to the NHS, with £437 million added to day-to-day spending.

There is also an additional £175 million to maintain NHS buildings and equipment.

It contrasts with the last budget, which imposed cuts on all departments except health.

Drakeford, the former First Minister, added: “This is a good budget for Wales. But it will take time to undo the damage done to Wales over 14 long years of neglect by previous British administrations.”

Most of the funding comes from the UK government, which has given the Welsh government a chance Cash payment When Chancellor Rachel Reeves announced her Budget in October.

But it’s not clear how much money the higher National Insurance payments employers have provided will be swallowed up.

Welsh officials expect additional funding to cover the cost to public sector employers, but not to private companies that provide many services, including companies that run care homes.

There is no change to income tax rates in Wales, meaning they will remain the same as in England.

The land transaction tax rates paid by people buying homes will remain the same, unless they already own one or more properties. These people pay a higher rate that rises by one percentage point.

Despite the sharp increase in funding this year, the budget confirms that “the fiscal outlook beyond (2026) appears difficult.”

Finance experts at Cardiff University warned that this could mean more difficult decisions for public services after next year.

The Welsh Government publishes a budget each year covering how the public services it controls are funded.

It covers the health service, education, councils and rural affairs, among other departments.

It includes some tax decisions but most of the major fees are determined at Westminster.

The budget covering the NHS’s day-to-day running costs is expected to grow by around 3.9% next year, rising to nearly £11.4 billion.

Labor says reducing long waits for treatment is a priority.

The latest data shows that by September 23,701, the wait for treatment had lasted more than two years. The equivalent number in England is 113.

The budget said rising demand for healthcare meant the NHS still had to find savings and become more efficient.

Other key figures from the Welsh Government say:

• Housing and local government will receive an additional £279.9m (5.4%) and an additional £120m of capital.
• The transport sector will receive an additional £69.6 million (12%), and an additional £51 million in capital funding.
• Education (not including council-funded schools) will receive £83.6 million (4.9%), and an additional £28 million in capital funding (8.1%).
• Climate Change and Rural Affairs will receive an additional £36.35 million (6.6%) and £71.95 million in additional capital (31%).
• Social Justice will receive additional revenue results of £6.8m (4.7%) and £3m of capital funding

Councils will receive an extra £235 million – a 4.3% increase – while an additional £20 million is spent on the Welsh Government’s childcare offer.

The transport boost includes the annual toll the Welsh Government will have to pay for the A465 Heads of the Valleys Road.

The scheme is privately funded and the Welsh Government will have to pay a service charge once it is completed. It was reported in 2020 that it would cost £38 million per year.

Arts, Culture and Sport Wales bodies saw a 10% cut this year. They will receive a £4.5m increase, but it will not make up for previous cuts.

Support for bus services will increase by £9.1 million. Bus lobby group CPT Cymru welcomed the money, but said: “With costs rising rapidly, this money may not be enough to maintain existing routes and services, let alone grow them.”

In the Senedd on Tuesday, newly appointed Welsh Conservative leader Darren Millar asked the First Minister how much of the budget would be “eaten up” to cover National Insurance increases.

“The reality is, as you well know, the hundreds of millions of pounds that you say is extra money coming into Wales will simply go straight back via the M4 into the Treasury coffers.

It was a “smoke and mirrors situation that’s giving with one hand and taking with the other,” Millar said.

First Minister Eluned Morgan said those working directly in the public sector would be “covered” by National Insurance.

She added that this was “the highest budget increase since the beginning of the transfer of power.”

The Welsh Government will need an opposition politician to help it pass its plans in Senedd, with a final vote scheduled for March 2025.

A Plaid Cymru politician appeared to rule out a budget deal on Tuesday morning.

The party’s finance spokeswoman Helid Fitchan was asked if she was ready to do a budget deal on Radio Wales breakfast, and said: “No. We want fair funding for Wales.”

He later added: “Labour’s budget is disappointing, unambitious and falls far short of what is needed to support Wales’ struggling public services.”

She said local government funding “is a drop in the ocean compared to what is needed to meet the increasing challenges faced by councils”.

In an interview with Radio Cymru, Jane Dodds, the only Welsh Liberal Democrat in the Senedd, did not rule out her involvement.

“It’s important that we get the budget and get all the money,” she said. “I’m open to talking to them but I don’t know what will happen yet.”

Increased funding to build more council homes and housing associations has been promised after doubts were raised over a key commitment.

Welsh Labor Party Manifesto It promised to create 20,000 social homes for rent by 2026.

But the spending watchdog said in September that less than half of the project had been built and more money was needed to meet the target.

The government said an additional £81 million in the budget would help reduce homelessness and “ensure every person in Wales has a place to call home”.