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First Minister Eluned Morgan has held talks with the leader of the Welsh Conservatives as she looks for support to pass the Welsh Government’s 2026/27 budget.

The ruling Welsh Labour group are currently two Senedd Members short of a majority, meaning it needs the support of opposition members if it is to get its £27bn draft budget plans through.

Failure to agree a budget would result in public services in Wales facing sweeping cuts, due to the fact the Welsh budget would be automatically revert to 75% of last year’s budget if an agreement cannot be reached.

Finance secretary Mark Drakeford previously warned that failing to pass the Welsh budget, which would cover the 12 months from April 2026, would result in cuts of up to £7bn and thousands of job losses.

In the event of no deal, Mr Drakeford previously said: “Instead of me coming forward with a budget that adds £800m into our public services, I would be coming forward with a budget that cuts everything this Senedd does by between £6bn and £7bn.”

Earlier this year, the Welsh Government cut a deal with Jane Dodds, the sole Lib Dem representative in the Senedd, to get the 2025/26 budget plans through. But if Labour fails to win the Caerphilly by-election on Thursday October 23, Ms Dodds’ support alone would no longer be enough.

Baroness Morgan met with Welsh Tory leader Darren Millar on Tuesday October 21 in an attempt to find common ground that could guarantee Conservative support – which would see the budget approved.

Mr Millar described the meeting as “constructive” and said further “more detailed discussions” are due to be held “in the coming weeks”.

The Tory group leader previously wrote to the First Minister to say an agreement “may be possible” if the Welsh Government considers “some of our key Welsh Conservative priorities, such as the scrapping of Welsh Stamp Duty (Land Transaction Tax) for all primary residential properties”.

Baroness Morgan has called for detailed discussions to also be held between finance secretary Mr Drakeford and shadow finance secretary Sam Rowlands.