Welsh government makes 'final proposal' to Labour on budget

The Plaid Cymru Welsh government says it has made its "final proposal" to Labour to strike a deal to pass its supplementary budget on Tuesday.

The new offer would see £120m allocated over the next three years to pupils with additional learning needs (ALN), but Labour has been holding out for £100m to be spent now.

The Senedd will vote on the spending plans on Tuesday evening. The government faces defeat without a deal because the number of Plaid members in the Senedd does not amount to a majority.

Labour Members of the Senedd (MSs) are set to discuss the latest offer before deciding their position.

This is the latest in a series of exchanges between the two parties as the approval of the new Welsh government's spending plans hangs in the balance.

In a letter to Welsh Labour interim leader Ken Skates on Monday, First Minister Rhun ap Iorwerth said the government would be ready to invest £120m directly into ALN provision over the the next three years.

He said it would ensure "sustained strengthening of ALN provision and building the sustainability needed".

"However, in the interests of transparency, I must emphasise that additional funding towards ALN will not be possible without the successful passage of the supplementary budget," ap Iorwerth added.

If the Senedd votes down the supplementary budget, ministers would have the option of returning with an amended offer either in the summer recess – if given approval – or in the autumn.

Until the plans are passed, the government would stick to spending plans already in place.

Ap Iorwerth's letter also said that the Welsh government was facing in-year pressures of £333m in the Welsh NHS alone.

The current supplementary budget has left £247m of day-to-day spending unallocated.

Recent analysis by the Wales Governance Centre at Cardiff University suggests that even if all the unallocated cash was spent on the NHS it would still be less than half the historic annual average increase for the health service.

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.

On Thursday ap Iorwerth said it was "Labour's call" to pass the budget because ministers were working under tight financial constraints.

Labour had already rejected an offer of £40m per year for ALN over two years.

Labour finance spokesman Huw Thomas told BBC Wales that it was "not enough" and that Labour would vote against the budget "as is stands".

The call for £100m has been backed by Welsh Labour council leaders and some of the teachers' unions.

A senior Labour source said: "From offering zero for ALN a week ago, Plaid are offering jam tomorrow and beyond, but we need £100m now, not on the never-never."

Reform and the Welsh Conservatives say no discussions have taken place with them, with both parties expected to vote against the plans.

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.