Welsh Government does budget deal with Lib Dems

The Welsh Government has struck a budget agreement with the sole Welsh Liberal Democrat Member of the Senedd, Jane Dodds, ensuring the passage of its £26bn budget for 2025/26.

The deal, which includes targeted funding for key public services, will bring direct benefits to Newtown and Powys, particularly in childcare, transport, and local infrastructure.

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Expanding Childcare for Two-Year-Olds

One of the most significant elements of the agreement is an additional £30m for childcare. This funding will support the Flying Start programme, extending childcare provision to two-year-olds across Wales, including those in Newtown and wider Powys. Additionally, the hourly rate for childcare providers will be increased to £6.40, helping sustain childcare services and support families struggling with the cost of living.

Jane Dodds MS welcomed the funding, stating:

"I’m really pleased the Welsh Government is taking this step to offer universal free childcare to families with children aged two to four across Wales. This is important to tackle child poverty and to help parents get into work to help with the cost-of-living crisis."

Funding for North Powys Wellbeing Campus

As part of the agreement, the Welsh Government has committed funding for feasibility studies supporting the development of the North Powys Wellbeing Campus in Newtown. This initiative aims to enhance healthcare and wellbeing services in the region, providing much-needed support to local residents.

Increased Funding for Powys County Council

Powys County Council is set to receive additional funding as part of the agreement, which could potentially reduce the need for a higher council tax increase. However, the Council has stated that any additional budget will be allocated primarily to road and highway improvements rather than reducing tax burdens on residents.

Cabinet Secretary for Finance Mark Drakeford emphasised the impact of the agreement, stating:

"This additional investment will make a real difference to communities across Wales, particularly in rural areas. Taken together with the extra £1.5bn announced in our Draft Budget, this is a positive package of additional funding for every part of Wales."