Welsh government and Labour strike budget deal with £60m for additional learning needs

The Welsh government has reached a deal with Labour on its mini-budget, which had failed to pass in the summer.

Ministers said the Plaid Cymru-led administration had now agreed an extra £60m for the education of children with additional learning needs (ALN).

Labour, which sits in opposition after losing May's Senedd election, had rejected a £40m a year deal across three years, in angry scenes at the Welsh Parliament in the last week of term in July.

Welsh Labour leader Ken Skates had demanded £100m this year when the supplementary budget was last discussed.

Reform said the deal was good for Plaid and Labour but not Wales.

Despite the agreement with Labour, headteachers union NAHT expressed "deep disappointment" at the level of funding.

The budget will be debated in the Senedd on 3 November.

On Tuesday, First Minister Rhun ap Iorwerth said: "This agreement reflects what can be achieved when parties across the Senedd work together."

Skates said Labour had "managed to secure a significant cash injection for schools".

"While we still believe the Welsh government should be setting aside more for ALN in schools, it is a welcome first step in dealing with the need to better fund schools," he said.

Plaid Cymru's original mini-budget included £100m for the NHS to bring down waiting times, £55m for childcare and £40m for school repairs.

If the supplementary budget is not passed then the government would have to find other ways to fund its new plans.

Helen Jenner, leader of Reform Wales, said: "While we welcome extra support for additional learning needs provision, the Welsh government is still sending millions of pounds of taxpayers' money overseas while our public services suffer here at home."

Former Welsh Labour leader Mark Drakeford previously said his party had made mistakes in how it handled negotiations with Plaid over the summer, and suggested there was a case to be made to take the money that had been previously offered by Plaid.

Following Tuesday's announcement, Llŷr Powell, Reform's chief whip, said: "When Mark Drakeford speaks, Ken Skates starts dancing."

Darren Millar, leader of the Welsh Conservatives in the Senedd, said the deal was "merely a continuation of the same failed budget approach by the Labour-Plaid duopoly that has been letting down the people of Wales for decades".

It is not known yet if Labour will vote for or abstain on the budget as part of the deal.

If Labour abstain Plaid would need the support of the Greens and Lib Dem MS Jane Dodds

Skates did not say which way his party would go, telling BBC Wales on Tuesday: "We're going to make a final decision on that but certainly we will not stop the budget from passing."

ALN is the equivalent education system in Wales to special educational needs and disabilities (SEND) in England.

The Welsh government received extra cash as a result of more SEND spending in England to help schools struggling with debt, and Labour had argued for some of that to be given to schools in Wales.

Rob Kelsall, assistant general secretary of NAHT, said school leaders across Wales would be asking "what happened to the £322m that became available to Wales as a result of additional SEND funding in England?"

He said: "What has emerged is a package that falls substantially short of that figure and asks schools to be grateful for receiving only a fraction of what should have been available to learners with additional needs."

Welsh Education Minister, Anna Brychan, said ministers remained in "active discussions" with NAHT Cymru.

She said ALN was a "key priority" for her, and she recognised the "significant financial and operational pressures" facing schools and colleges.

"It is my hope that this additional funding, to be used in-year, will alleviate some of the more immediate financial and operational pressures facing schools, colleges, local authorities and support services," she added.

There were angry scenes in the Senedd in July when the Plaid Cymru government brought its supplementary budget to a vote without a deal in place.

Plaid failed to get any opposition support for the package.

Finance Minister Elin Jones accused Labour of behaving as a "destructive opposition" at the time.

Tory Senedd leader Millar said the decision to vote on the budget anyway was "bonkers".

The first minister later said his government had learned "lessons" from the episode, and promised to improve the way his government engaged with others.

It was not clear if the £60m offered in the deal is annual, and Brychan said allocation for future years would be part of the preparations for the draft budget for 2027-28.

Talks are ongoing with other parties for the Welsh government's full annual spending plans, which will be voted on by the Senedd early next year.

Of the £60m, £56m will be split between schools and councils - 80% to schools and 20% to councils.

Another £1.5m will be spent on a long-term sustainability plan, and £2.5m for the further education sector.