The Final Budget 2026-2027 will provide £1.2 billion more for people, public services and businesses across Wales than in this financial year.
It makes £400 million of new allocations since the Draft Budget was published in October.
This includes £300 million of revenue funding for local government and the NHS, secured through the budget agreement between the Welsh Government and Plaid Cymru.
And a further £100 million of revenue and capital funding, which will support Welsh Government priorities, including bus services, apprenticeships, further education, flood prevention, and the maintenance of school buildings.
Every Welsh Government department will have at least the same level of funding in real terms in 2026-2027 as this financial year, with an uplift for inflation and pay, to help protect frontline services and safeguard jobs.
The Final Budget 2026-2027 provides £27.5 billon in 2026-2027.
Key allocations include:
- £112.8 million additional funding for local government, with all councils receiving increases of 4% or above.
- £180 million additional funding for the health and social care budget, bringing the total revenue budget to more than £12.6 billion.
- £116 million package of support for businesses over two years to help with the impact of the 2026 non-domestic rates revaluation.
Finance Secretary Mark Drakeford said:
“This Final Budget provides extra resources to support the services Wales relies on. Every department has been protected with at least the same funding in real terms as this year, including extra funding for inflation and pay – recognising the vital work of our public service workforce.
"By working across the Senedd, we are providing certainty and stability for public services now, while ensuring the next Welsh Government has the resources it needs to deliver its priorities from day one."
The Final Budget debate and vote will take place in the Senedd on 27 January 2026.