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Welsh Government has announced its draft budget for next year, amid the uncertainty of the ongoing coronavirus pandemic.

An extra £420 million has been proposed for health and social care services in Wales, while an extra £176m will go to local authorities.

Meanwhile, a £77m support package has been announced to provide ‘certainty where it is most needed’ during the pandemic. This includes the extension of contact tracing and free school meals.

Welsh Government’s Finance Minister, Rebecca Evans, announced the draft budget and said: “As we plan for our first steps beyond the pandemic, this budget is designed to protect health and our economy, build a greener future and create change for a more prosperous, more equal, and a greener Wales.

“Despite the most challenging circumstances we have ever faced as a government, I am proud to announce a budget that delivers on our values and provides sound foundations for the next administration.”

She added: “While like-for-like funding per person in Wales remains below 2010 levels, our priorities will steer a course for stability, protecting what matters most and creating the change that is essential to a good recovery.”

Labour Senedd Member Rhianon Passmore, who represents Islwyn, said: “It’s great to see that the draft budget they’ve unveiled is designed to protect our health and our economy, build a greener future and create change for a more prosperous, more equal, and a greener Wales.

“The Welsh Labour Government has faced some unprecedented challenges this year but despite that, I am proud that the budget the Finance Minister has announced delivers on our strong Labour values.”

Shadow Finance Minister Nick Ramsay MS, who represents the Welsh Conservatives, called the proposals “a missed opportunity to build back better” and said: “The Welsh Government had an opportunity today but has failed to deliver a recovery plan for Wales.”

Rhun ap Iorwerth MS, Plaid Cymru Finance spokesperson said: “This is a wholly inadequate financial settlement for Wales from the UK Government that in no way reflects the challenge of rebuilding the entire fabric of daily life in the Covid era.

“Wales is being hit hardest by a perfect storm of Covid and austerity, and our ability to invest in growing our economy is being hampered by Westminster’s failure to fund Wales adequately and its punitive borrowing cap.”

Ben Francis, of the Federation of Small Business Wales (FSB Wales), urged Welsh Government to “to look at how they outline their vision for how Wales can begin the economic recovery from Coronavirus”.

Mr Francis said: “It has become increasingly the case that businesses will have to build back from an even worse position that many of us could have imagined earlier this year – particularly those that were relying on the run-up to Christmas to keep them viable. This must be addressed as a matter of urgency in the New Year.

“Businesses have rarely been in a more precarious position than they find themselves at the end of 2020, and all and any efforts Welsh Government can take to help provide a strong economic landscape in which Welsh firms can rebuild will have a huge impact.”