The Welsh government has agreed a supplementary budget deal with Welsh Labour, allocating an additional £60m for children with additional learning needs (ALN), following the collapse of earlier negotiations over the summer.
The agreement comes after Labour, then in opposition following its loss in the May Senedd election, rejected a proposed £40m annual allocation spread over three years during contentious scenes at the Welsh Parliament in late July.
Welsh Labour leader Ken Skates had previously demanded £100m in funding for ALN as part of discussions on the supplementary budget.
First Minister Rhun ap Iorwerth said on Tuesday: “This agreement reflects what can be achieved when parties across the Senedd work together.”
Skates described the outcome as a “significant cash injection for schools”, while acknowledging further funding would be needed. “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,” he said.
The original Plaid Cymru mini-budget included £100m for the NHS to reduce waiting times, £55m for childcare and £40m for school repairs. If the supplementary budget is not approved, the government will need to identify alternative funding mechanisms for its planned initiatives.
Reform Wales leader Helen Jenner criticised the deal, stating: “This deal may be good for the failed establishment of Plaid and Labour, but it does not deliver for Wales. While we welcome extra support for additional learning needs provision, the Welsh government is still sending millions of pounds of taxpayers’ money overseas while our public services suffer here at home.”
Former Welsh Labour leader Mark Drakeford had earlier acknowledged that his party made errors during summer negotiations with Plaid Cymru and suggested there was merit in accepting funding previously offered by the Welsh government.
Following the announcement, Reform’s chief whip Llòyr Powell commented: “When Mark Drakeford speaks, Ken Skates starts dancing.”
It remains unclear whether Labour will vote in favour of the budget or abstain. A Labour source indicated the party intends to allow the supplementary budget to pass.
The budget is scheduled for debate in the Senedd on 3 November.
During July’s session, opposition parties criticised the Welsh government for proceeding with a vote on the supplementary budget without securing cross-party support. Finance Minister Elin Jones labelled Labour’s stance as that of a “destructive opposition”.
Conservative Senedd leader Darren Millar described the decision to proceed with the vote as “bonkers”.
After the incident, the first minister stated that the government had “learned lessons” and committed to improving inter-party engagement moving forward.
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