Welsh Senedd Faces Pay Cuts Amid Budget Vote Uncertainty

The Welsh Conservatives have proposed tax cuts, including a 1p reduction in the basic income tax rate and scrapping business rates for small businesses, aiming to boost the Welsh economy and alleviate financial burdens on families and firms. Labour ministers have criticized this plan as "unfunded," warning it would create a £669 million budget shortfall. Meanwhile, the Senedd's presiding officer, Elin Jones, has issued a dire warning about the consequences if the Welsh Government fails to pass its budget, which would severely impact the Senedd's ability to operate, potentially risking politicians' salaries and staff jobs amid a planned 21% budget increase to support the expansion of the Senedd from 60 to 96 members. The Senedd Commission's draft budget, which totals £102 million for 2026-27, depends on the Welsh Government's broader budget approval, which is uncertain following an upcoming by-election that could hinder Labour's majority. Failure to pass the budget would force a reduction to 95% of the current budget, making it nearly impossible to maintain the expanded Senedd's operations, including covering costs for new members and refurbishments. This budget impasse underscores the tension between political parties over fiscal priorities while raising concerns about the practical functioning of Welsh governance institutions.