Cabinet meeting: 9 October 2025

• Rt Hon Eluned Morgan MS (Chair)
• Huw Irranca-Davies MS
• Jayne Bryant MS
• Mark Drakeford MS
• Rebecca Evans MS
• Jane Hutt MS
• Julie James MS
• Jeremy Miles MS
• Lynne Neagle MS
   
• Dawn Bowden MS
• Sarah Murphy MS
• Jack Sargeant MS

Apologies

• Ken Skates MS
• Vikki Howells MS

Officials

• Andrew Goodall, Permanent Secretary
• Rachel Garside-Jones, Director Office of the First Minister and Delivery
• Rebecca Dunn, Head of Cabinet Division
• Victoria Jones, Principal Private Secretary First Minister
• Toby Mason, Head of Strategic Communications
• Sinead Gallagher, Deputy Director Cabinet Office
• Luke Young, Special Adviser
• Sarah Dickins, Special Adviser
• Madeleine Brindley, Special Adviser
• Haf Davies, Special Adviser
• Victoria Evans, Special Adviser
• David Hooson, Special Adviser
• Nadila Hussein, Special Adviser
• Kirsty Keenan, Special Adviser
• Jackie Jones, Special Adviser
• Stephen Jones, Special Adviser
• Philippa Marsden, Special Adviser
• Tal Michael, Special Adviser
• Martha O’Neil, Special Adviser
• Mary Wimbury, Special Adviser
• Christopher W Morgan, Head of Cabinet Secretariat (minutes)
• Damian Roche, Cabinet Secretariat
• Helena Bird, Permanent Secretary’s office
• Carwyn Wycherley, Cabinet Office
• Kath Hallett, First Minister’s office
• Tracey Burke, Director General Climate Change & Rural Affairs
• Sioned Evans, Chief Operating Officer
• Jacqueline Totterdell, Director General Health and Social Care
• Andrew Slade, Director General Economy, Energy and Transport
• Emma Williams, Director General Education, Culture & Welsh Language
• Nia James, Director Legal Services
• Andrew Jeffreys, Director Treasury
• Jodye Kershaw, Head of Budget Policy & Delivery
• Dean Medcraft, Director of Finance
• Sharon Bounds, Deputy Director Financial Controls

1.1 The First Minister welcomed everyone to the Cabinet meeting in North Wales to discuss the Draft Budget package for 2026-2027. This was the start of the process, that would include negotiations with other parties culminating with a debate on the Final Budget on 27 January. The First Minister thanked everyone who had been involved in preparing the budget documentation and invited the Cabinet Secretary for Finance and Welsh Language to introduce the paper.

1.2 Earlier in the year, Cabinet agreed a strategy for a one-year budget in 2026-2027, to reflect that the Senedd Elections would be taking place in May. It provided a firm foundation for public services by allocating 98.6% of the funding available and would continue the investment commenced the previous year.

1.3 In line with the strategy, all MEGs would be provided with a 2% uplift, and those with a large proportion of public sector pay would receive a 2.2% increase. There would also be a small number of allocations to meet some exceptional cases.

1.4 In addition, given the concerns about local government funding, there would once again be a funding floor, with a minimum increase of 2.3% for each local authority.

1.5 The paper outlined the position in terms of taxes. There would be no changes to the Welsh Rates of Income Tax.

1.6 The outline Draft Budget would be published on 14th October, with a debate on a statement in the Senedd later that day, with no vote.

1.7 Cabinet welcomed the paper, particularly the proposed supporting material, which would include the Strategic Impact Assessment, outlining the cumulative implications of the Government’s spending to support the most vulnerable in Wales.

1.8 Following comments made by Cabinet Secretaries and Ministers and noting comments from the Cabinet Secretary for Education, Cabinet approved the recommendations in the paper.

Cabinet Secretariat
October 2025