'Labour's call' to pass Welsh budget, says first minister

Doubts remain over whether the Plaid Cymru Welsh government will be able to get its supplementary budget through the Senedd next week after Labour rejected the offer of a deal on Thursday night.

Speaking at a meeting of the British Irish Council on Guernsey on Friday, First Minister Rhun ap Iorwerth said it was "Labour's call" and the proposal was "the offer" because ministers were working under tight financial constraints.

Plaid Cymru had pitched an extra £80m over two years for pupils with additional learning needs, but Labour is holding out for £100m in this supplementary budget alone.

Labour's finance spokesperson Huw Thomas said the party would oppose the budget "as it stands."

Ap Iorwerth told BBC Wales that Labour should "reflect on why they would want to disappoint parents and local authorities… when there was such a comprehensive package on the table."

He added: "It's their call now."

Asked if he would have to go back to Labour with an improved offer, he said: "We have this offer on the table, which is 10 times more than Labour was going to spend on additional learning needs.

"We are ready to move forward with this."

Ap Iorwerth said that his government had pushed the boundaries and were working in a very tight constraint.

In response Huw Thomas said the offer was not enough.

"As it stands we will be opposing it now," he said.

He added: "There are certain things that happen if the supplementary budget isn't passed, but we'll be available to come back and vote for it the following week if that's what Plaid wants to do, if they meet our demands."

Plaid needs to strike a deal for its spending plans to be approved because it does not have a majority in the Senedd.

The Welsh government published its supplementary budget last month, with an extra £100m to try to bring down NHS waiting lists, £55m for the flagship childcare expansion and £40m for school repairs.

At the time, Finance Minister Elin Jones outlined plans to allocate an extra £294m to fund her party's policies.

A total of £247m in day-to-day funding has been left unallocated, but Plaid Cymru sources say they are mindful of looming pressures later in 2026 and into the new year, especially in the NHS.

A supplementary budget allows the government to make in-year changes to its annual budget plans.

This year is different because the annual budget was set when Labour was in charge in Cardiff Bay.

The supplementary budget was published by the Plaid Cymru-led administration after the party won May's election.

It is seen as a first indication of how Plaid will prioritise spending and a first test of whether it is able to strike deals with other parties.

Ministers have the option to bring a supplementary budget back to the Senedd in a different form in the autumn.

Senedd Members will vote on the supplementary budget on Tuesday.