Spending by the Welsh government depends mostly on UK government funding. Image Vitalii Stock / shutterstock.com.
While the announcement of rail funding dominated headlines in Wales, the 2025 Spending Review presented on 11 June provided crucial detail on the outlook for the Welsh government spending. It will set the fiscal context for next year’s Senedd election.
The Welsh government can raise taxes, but most of what it spends comes in a grant from the Treasury. Its funding will be £22.4 billion on average over each of the next three years (beyond next year’s Senedd elections). Under the review Wales has suffered a drop in capital spending of almost 1 per cent.
The figures also include £445 million on railways in Wales, most for new stations. The cost of upgrading existing valley lines means the figure does not cover other costs and has been criticised as not enough. Only £25 million was previously allocated in last year’s autumn budget.
• A longer version of this article is on the web at www.cpbml.org.uk