Rhun ap Iorwerth faces first big Senedd test to get spending plans passed

Rhun ap Iorwerth faces his first big test since winning May's Senedd election as his Welsh government publishes its mid-year spending plans on Tuesday.

The new Plaid Cymru-led administration will need to strike a deal with another party to get the supplementary budget through parliament, with a debate and vote set for 14 July.

Hundreds of millions of pounds have already been earmarked for the NHS and childcare, while Finance Minister Elin Jones has warned of "extremely difficult" decisions to fund Plaid's manifesto pledges.

Ministers have also inherited £118m from the previous Welsh Labour government's spending plans, which was set aside to be spent on infrastructure projects.

According to independent think tank the Institute for Fiscal Studies (IFS), ministers are thought to have a total of around £422m for day-to-day spending.

This is made up of unallocated funding from the current budget and an additional £322m from the UK government's spring statement.

Much of that £322m is funding Wales received as a consequence of money spent by the UK government, used to pay off the debts of English councils built up through supporting young people with special educational needs and disabilities.

Plans have already been announced to use £100m of day-to-day funding to try to bring down NHS waiting lists, alongside £25m from the infrastructure pot on surgical hubs and £20m on maintenance.

A further £55m will go towards expanding childcare to more two-year-olds.

Meanwhile, £15m will go towards providing more free school meals for pupils in secondary schools, including £10m to improve school kitchens and canteens.

Plaid has been under pressure to spell out how it will pay for its flagship policy to expand free childcare to all children aged nine months to four years old.

The party has said it will cost £400m a year by the end of the parliament in 2030.

Tuesday's plans may also give some indication of where the new government has decided to cut funding.

Plaid Cymru representatives said during last month's election campaign that it would re-prioritise some of the £7bn the last Labour government spent on tackling child poverty to pay for the childcare offer.

A supplementary budget is used by a government to make in-year changes to its current spending plans.

In opposition Plaid had said it would bring one forward within its first 100 days if it won the Senedd election.

The current budget for 2026/27 was passed in January after Plaid did a deal with the then Labour-run Welsh government.

The IFS has warned that the NHS could face real-term cuts unless all the extra available day-to-day funding is allocated to the health service.

Plaid is six seats short of a majority so it will need to strike a deal for its plans to pass a vote in the 96-member Senedd.

Labour finance spokesperson Huw Thomas said the party was "concerned" about how Plaid would spend £300m of consequential funding.

Thomas said Labour supported calls from councils and teaching unions for the money to be given to schools.

Reform Wales' finance spokesman, Cai Parry-Jones, said: "The people of Wales want to see a budget that puts Wales first.

"However, it is expected that Plaid will raid cash designated for children with additional learning needs while continuing to send taxpayers' money abroad."

His party has criticised schemes where the Welsh government spend money internationally, including Wales taking part in tree-planting schemes in Africa.