The Senedd has approved the Welsh Budget 2025-26, releasing £1.6bn of extra funding for the NHS, councils, schools and public transport.
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.