Budget 2026
Wednesday, 4 November 2026
Contributions
Llinos Medi (Ynys Môn) (PC)Plaid Cymru
2. What assessment he has made of the potential impact of the autumn Budget 2026 on Wales.
The Secretary of State for Wales (Stephen Kinnock)Labour
This was a proudly Labour Budget that provides people in Wales with breathing space for today and hope for tomorrow. We are helping Welsh families with the cost of living by extending 0% VAT on electricity bills, getting rid of gas standing charges and removing the 4% tariff on heating oil to support 105,000 households in Wales.
The autumn Budget will deliver real-terms cuts to Welsh public services, because it fails to “compensate for higher inflation.” Those are not my words, but those of Cardiff University, which says that Wales now faces “difficult choices”, including cuts to local authorities such as mine on Ynys Môn. Can the Secretary of State explain why this UK Labour Government are imposing cuts on Welsh public services?
I genuinely do not know where Plaid Cymru is getting these numbers from. This Budget provides the Welsh Government with an additional £450 million for public services, meaning that the Welsh Government settlement continues to grow in real terms over the spending review period. In addition, the UK Government are providing a £6.5 billion increase in Welsh Government spending power as a result of changes to the fiscal framework, additional funding through the Barnett formula and the largest settlement in the history of devolution. This generational increase in 2025 was the largest settlement for Wales since devolution began in the late 1990s.
Mr SpeakerSpeaker
I call the Chair of the Welsh Affairs Committee.
Ruth Jones (Newport West and Islwyn) (Lab)Labour
I greatly welcome the Chancellor’s announcement of a further £30 million for the delivery of a new station at Cardiff Parkway, in a constituency that neighbours mine. Does the Secretary of State agree that this investment stands in stark contrast to the approach of the Plaid minority Government at Cardiff Bay, who are threatening to close numerous junctions of the M4, worsening air and noise pollution for my constituents?
I share my hon. Friend’s frustration. The Welsh Government must recognise that only a relief road will address the needs of the people, the economy and the environment of south-east Wales. What local people do not need is disruption and junction closures. I was pleased to see the Senedd support Welsh Labour’s motion to rule out closures and to begin work on an appropriate relief road for the M4, and I urge Plaid Cymru to work with Newport council and to reconsider its position.
I call the shadow Secretary of State.
Mims Davies (East Grinstead and Uckfield) (Con)Conservative
It was a damp squib Budget that largely forgot Wales. It had nothing on upgrading the A55 or the M4 bypass. The previous Welsh Government were offered the finance by the previous Conservative Government to unclog the Brynglas tunnels, but the Minister’s Labour Senedd colleagues—as we have heard—had the hide last month to call for an M4 relief road, despite being in power for 27 years. Can the Secretary of State explain why Labour is now making calls on projects it could and should have delivered when in power, or do they prefer to be the ones shouting from the hard shoulder?
I am taken aback by the brass neck of the Conservatives, after 14 years of neglect and incompetence, the failure to fund rail, and the failure to fix so many of the problems that they caused. I am very pleased that the Welsh Labour motion in the Senedd was approved, and we call on the Plaid Cymru Welsh Government to change tack, reconsider and do the right thing for the people of Wales.
That is a screeching U-turn for us all to see. As we have heard today, matters could go from bad to horrendous for M4 drivers. With the separatist Plaid Cymru Welsh Government now threatening to close multiple junctions, the Wales Office has sat on its hands. Compare that to my Conservative colleagues and me, who scrapped the Severn bridge tolls. Where is the action? Where is the pushback? After this failure, can the Secretary of State tell us why drivers and businesses should have any confidence that the Labour Government will stand up to Plaid for them?
The hon. Lady talked about the Budget. I remind her of what the Budget does for drivers: it extends the temporary 5p per litre fuel duty cut for a further six months; it makes permanent the 55p per mile tax-free mileage rate for the first 10,000 business miles, which will save a worker travelling 6,000 business miles at least £120 a year in tax from 2027-28; and it extends the 3.7p cut to red diesel duty to 1 July 2027. I respectfully suggest to the hon. Lady that she has another look at the Budget and comes back when she has got her facts right.
I call the Liberal Democrat spokesperson.
David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)Liberal Democrat
Communities across Wales are desperate to see economic growth and new jobs, and that is why the Welsh Liberal Democrats believe that Wales needs more powers, including powers over borrowing, full powers over rail infrastructure and full powers over the Crown estate. Does the Secretary of State agree and, if so, will Wales get more powers during this Parliament?
I wish the hon. Gentleman luck in the forthcoming leadership election—I believe he is standing against himself, so I am sure he will have a positive outcome. He mentioned rail, and I am delighted that we have secured at least £445 million to progress rail projects across Wales, including £30 million for Cardiff Parkway, which is front-loaded to support delivery of Welsh priorities during the spending review period. I am sure that he and his party will join me in welcoming those measures.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)Plaid Cymru
The Prime Minister promised to end 40 years of Thatcherite ideology, but last week’s Budget was a whimper, not a reset. A poll since the Budget found that 60% of voters believe that it merely tinkers around the edges, and in Wales we can see why—real-terms cuts loom for public services, we see a shrinking capital budget and there is no meaningful movement on rail funding. Does the Secretary of State understand why so many people in Wales feel that the Budget falls so far short of the promises talked up by his Government?
I thank the right hon. Lady for that question, but again I am not sure that those on the Opposition Benches are clear about what the Budget will deliver. In addition to all the breathing space measures, which are making a clear difference to the cost of living, we have £30 million on Cardiff Parkway railway station, £2.5 million on new funding for M-Sparc, £11 million for the Aberavon bridge and £20 million to support reindustrialisation in AI sectors, and that is on top of all the work we are doing on nuclear power at Wylfa and revitalising the Welsh steel industry. With all due respect, she too should have another look at the Budget and come back when she has got her facts straight.
The Secretary of State did not mention the £14 billion that has been promised, or the £300 million for Leeds railway station. There are threats of cuts everywhere. The BBC has announced £9 million of cuts at BBC Cymru Wales, including 58 job losses. Twenty hours of programming, as well as radio shows such as “Dros Ginio” and “Ar y Marc”, will be axed, and Welsh production companies are raising the alarm about the impact of fewer commissions. We have had to fight hard for Welsh-language broadcasting. What is the Secretary of State doing, as Wales’s supposed man in the Cabinet, to protect jobs and safeguard our national media?
I am proud to be a strong voice for Wales in the Cabinet. Frankly, I find it shocking that those on the Opposition Benches think that Wales should not have a strong voice in the Cabinet. We are ready to work closely with the Welsh Government to ensure that our broadcasting industry, which we are very proud of, continues to go from strength to strength. I look forward to working with the right hon. Lady and other colleagues to achieve that objective.
Source: UK Parliament Hansard API. Debate ID: 5432166.