Cabinet meeting: 16 June 2025

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

Apologies

• Rebecca Evans MS

Officials

• Andrew Goodall, Permanent Secretary
• Rachel Garside-Jones, Director Office of the First Minister and Delivery
• Victoria Jones, Principal Private Secretary First Minister
• Toby Mason, Head of Strategic Communications
• Sinead Gallagher, Deputy Director Cabinet Office
• Wayne David, Special Adviser
• Sarah Dickins, Special Adviser
• Julia David, 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
• Martha O’Neil, Special Adviser
• Mary Wimbury, Special Adviser
• Christopher W Morgan, Head of Cabinet Secretariat (minutes)
• Damian Roche, Cabinet Secretariat
• Bethan Davies, Cabinet Office
• Helena Bird, Permanent Secretary’s office
• Kath Hallett, First Minister’s office
• Tracey Burke, Director General Climate Change & Rural Affairs
• Sioned Evans, Chief Operating Officer
• Judith Paget, Director General Health
• Andrew Slade, Director General Economy, Energy and Transport
• Emma Williams, Interim Director General Education, Culture & Welsh Language
• Phil Elkin, Deputy Director Legal Services
• Andrew Jeffreys, Director Treasury (item 4)
• Anna Adams, Deputy Director, Tax Strategy & Intergovernmental Relations (item 4)
• Sarah Govier, Head of Intergovernmental Relations Treasury (item 4)

1.1 Cymeradwyodd y Cabinet gofnodion y 9 Mehefin 2025 / Cabinet approved the minutes of 9 June 2025.

UK Spending Review

2.1 The First Minister noted the UK government had published its Spending Review the previous Wednesday and there would be a substantive item on the outcome later in the meeting.

Meetings in London

2.2 The First Minister informed Cabinet that on Wednesday the previous week she had co-hosted, with the Japanese Ambassador, a mid-year reception in London for Wales and Japan 2025.

2.3 Later that afternoon, the First Minister undertook a number of media interviews in response to the outcome of the UK government’s Spending Review. The First Minister also joined the panel discussion on BBC2’s Newsnight.

British Irish Council

2.4 On Thursday and Friday, the First Minister attended the 43rd British Irish Council (BIC) Summit, hosted by the First Minister and Deputy First Minister of Northern Ireland. The Summit focused on the role of AI in Reform and Transformation and its use within the public sector.

2.5 Whist at BIC, the First Minister held bilaterals with the Chancellor of the Duchy of Lancaster, the First Minister of Scotland, the First and Deputy First Ministers of Northern Ireland, along with the Chief Minister of Guernsey, who was stepping down at the elections on 18 June.

2.6 The First Minister invited the Deputy First Minister and Cabinet Secretary for Climate Change to provide Cabinet with an update on the Bluetongue disease and the Retail Goods Regulations 2025.

Update on Bluetongue disease

2.7 In terms of Bluetongue disease, following the Deputy First Minister’s previous update to Cabinet on 2nd June, he had hosted a round table meeting with senior representatives of the livestock and veterinary sectors. The Deputy First Minister had considered those views carefully and concluded, given the potential economic impact and wellbeing issues on the farming community, he would attempt to hold back the disease from entering Wales as long as possible.  

2.8 As such, from 20 June, in line with the latest risk assessments, livestock would be allowed to move from the current restricted zone (RZ) in England to live in Wales, subject to obtaining the necessary licence and a negative pre-movement test. This would allow farmers to source business critical animals, such as herd and flock replacements.

2.9 In addition, there would be arrangements to allow livestock to move to and from shows and sales in the current RZ from 20 June, subject to licences and either pre or post movement testing.These polices would continue to be applied after 1st July, when the England-wide RZ comes into force. In the meantime, the promotion of the vaccine would be a priority.

2.10 It was recognised that the control measures would be challenging for businesses, including livestock markets and abattoirs, but the government was adopting a proportionate and pragmatic response to the uncertain risks posed by the disease. The policies would be kept under review and adapted given any changes to circumstances. Cabinet would be kept informed of developments.

Retail Goods Regulations 2025

2.11 The Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs informed Cabinet he had given consent to the Secretary of State for Environment, Food and Rural affairs to lay and make the Marking of Retail Goods Regulations 2025. The Regulations applied to England, Wales and Scotland and would provide for contingency power for the Secretary of State to introduce ‘not for EU’ labelling for specific food products in Great Britain. This would be enacted should the supply of certain retail goods be at risk and intervention was required to safeguard food supply to Northern Ireland.

2.12 These Regulations required the Secretary of State to consult Welsh and Scottish Ministers before determining that labelling was required and issuing a notice to that effect.

2.13 The Deputy First Minister had received reassurances from the Secretary of State for Northern Ireland that the powers would be activated as a last resort, should the consultation with the industry fail to improve supply.

2.14 They would only be in place until there was a sanitary and phytosanitary agreement between the UK government and the European Union.

3.1 Cabinet considered the Plenary Grid and noted that voting time was scheduled for 6:05pm on Tuesday and around 7pm on Wednesday.

4.1 The Cabinet Secretary for Finance and Welsh Language introduced the paper, which asked Cabinet to note the outcome of the UK government Spending Review, published the previous Wednesday, and the implications for Wales and the Welsh Government Budget. It set resource budgets for the next three years and capital budgets for the next 4 years.

4.2 Whitehall departmental resource budgets would grow by 1.2% in real terms, on average, across the Spending Review period. However, this was not uniform, with the Department of Health and Social Care receiving 2.8% a year on average, 0.7% a year to the Education Department, while other Departments would receive around 0.1% on average.

4.3 The Welsh Government settlement would grow by 1% for resource in real terms, with an overall capital increase of 1.8% each year. This amounted to an additional £5 billion resource and capital over the spending review period, with £1 billion in 2026-2027, £1.6 billion in 2027-2028 and £2.4 billion in 2028-2029, against the higher baseline of 2025-2026. The resource position would grow year on year, whereas the capital was frontloaded. There had been no announcement on improved budgetary flexibilities, and officials would continue to press UK Treasury on this.

4.4 There would also be an extra £4 million in the current financial year, but the permanent gap in funding of £72 million in relation to public sector employer national insurance contributions had been confirmed as part of the announcement.

4.5 There had also been some Wales specific allocations, in relation to Coal Tip Safety, with £118 million over 3 years, along with £445 million for rail investment. The bulk of the rail funding for Wales was non-devolved and would be delivered via Network Rail. There was also some uncertainty as to whether the whole of the funding envelope was intended for new schemes.

4.6 Other spending announcements impacting Wales included the Local Growth Fund, where there would be £633 million of funding over 3 years, which maintained Wales’ 22.5% of the UK total funding. Detailed governance arrangements continued to be discussed with the UK government.

4.7 There was funding to enable the Port of Port Talbot to support offshore wind, and a UK-wide research and development funding package to develop innovation clusters, with one being located in Wales. Both governments would work to establish a Defence Growth Deal in Wales and there may also be benefits from the announcement around the Small Modular Reactor, with Rolls Royce being the preferred bidder.

4.8 Cabinet welcomed the paper and the additional investment for Wales.

4.9 Cabinet noted the paper.

The Indian Air Disaster

5.1 The First Minister restated that she was deeply saddened to learn of the tragic air crash in India on Thursday, and thanked the Cabinet Secretary for Social Justice, Trefnydd and Chief Whip for representing the Government at the prayers for the victims, which had taken place on Saturday at the India Centre in Cardiff.

Conflict in the Middle East

5.2 Cabinet noted the recent escalation in the conflict in the Middle East and recognised there would be a need to monitor the humanitarian and socio-economic implications.

Cabinet Secretariat
June 2025