Welsh Labour, Tories Begin Talks on £27bn Budget Amid Majority Challenge

The Welsh Labour Government, led by First Minister Eluned Morgan, is seeking opposition support to pass its £27 billion budget for 2026-27 amid a lack of majority in the Senedd. For the first time in 20 years, formal budget talks have begun between Labour and the Welsh Conservatives, with Tory leader Darren Millar proposing the scrapping of the Land Transaction Tax (Welsh stamp duty) as a key condition for agreement. Both parties express a desire to avoid automatic and potentially severe spending cuts, including mass redundancies, which would be triggered if the budget fails to pass due to legislative requirements. While the Welsh Liberal Democrats, represented by Jane Dodds, are open to cooperation, Plaid Cymru has so far denied engaging in talks. The initial meeting between Morgan and Millar is seen as exploratory, with detailed financial negotiations expected to follow between their respective finance officials. Labour's precarious position is further complicated by an upcoming by-election that could reduce its support in the Senedd, making cross-party agreements even more critical.