Government suffers major setback as budget plans rejected after ALN row

The Welsh Government’s supplementary budget has been rejected by the Senedd following a row over funding for pupils with additional learning needs (ALN).

The Plaid Cymru minority administration’s supplementary budget – which included £294 million in extra funding for the NHS, childcare, and transport – was defeated on Tuesday July 14.

Because Plaid Cymru does not hold a majority in the Senedd, it needed support or abstentions from opposition parties to pass the budget. Despite securing the backing of the two Green Party MSs, Welsh Labour, the Conservatives, and Reform united to block the plans.

The main point of contention was school funding. Labour had demanded that £100 million of unallocated Welsh Government money be spent immediately on ALN services this financial year –a view echoed by senior councillors in Caerphilly.

In a bid to save the vote, First Minister Rhun ap Iorwerth wrote to Labour offering an extra £40 million for ALN this year, alongside £40 million in each of the next two financial years.

However, the compromise was rejected, leaving key funding allocations for public services in limbo.

Welsh Labour leader Ken Skates described the budget failure as “regrettable” and said: “This isn’t the outcome we wanted, but it’s clear that the funding offered for ALN simply wasn’t enough.

“This is about fighting for the best possible deal for our schools and children and young people with ALN. We cannot settle for less than they deserve.”

Mr Skates said his party “urged” the Welsh Government to withdraw its supplementary budget and negotiate with teaching unions, before bringing back a new supplementary budget in the summer with more ALN investment.

“It’s unfortunate that this was not the approach they took,” said Mr Skates. “But there’s still time to negotiate and bring back new proposals.

“As we’ve made clear, we do welcome much of the funding proposed in this supplementary budget, particularly for reducing NHS waiting lists, and we want to see that extra funding delivered.”

But Plaid Cymru attacked Labour, saying the party is “working with Reform UK and the Tories to obstruct millions of pounds of investment in the health service, to support children with ADHD, and to expand childcare”.

The party added: “It is highly disappointing that they have blocked investment in the priorities of the people of Wales.”

Finance minister Elin Jones, speaking to BBC Wales, accused Labour of being “destructive opposition” and said she was “flabbergasted” by Labour’s vote against the budget.

What was in the budget?

The supplementary budget is used by the Welsh Government to make in-year adjustments to its spending. The defeated proposals included:

• £145 million for the NHS to help tackle waiting lists.
• £55 million for Plaid Cymru’s early-years childcare offer.
• £8 million to protect £1 bus fares for children and young people.

‘Red lines’

Reform leader Dan Thomas said Plaid Cymru “cannot govern this country” after his party rejected the budget, citing its own “red lines” on public spending.

Cai Parry-Jones, Reform’s shadow finance minister, said the party would not support a budget that “hands ALN money to Cardiff Bay bureaucracy instead of councils” and failed to guarantee jobs for newly qualified nurses and paramedics.

The Welsh Conservatives also voted against the budget, claiming it ignored the immediate needs of schools and rural communities.

Sam Rowlands, the Conservative finance spokesperson, said: “There is nothing here to support small businesses, cut taxes, or kickstart economic growth. Once again, our farmers have been overlooked, and not a single penny of the extra funding Wales received for ALN has actually been allocated to ALN support here.”

Call to return to negotiations

With public services facing tight budgets, trade union leaders have urged politicians to resolve the deadlock quickly.

Laura Doel, TUC Cymru general secretary, said: “Public services across Wales are desperate for investment, whether that be in our hospitals, our council offices, or indeed our schools.

“TUC Cymru are calling for the Welsh Government to get back round the negotiating table with other Senedd parties. The chronic underfunding of additional learning needs provision must be addressed in any future supplementary budget.”