The Welsh government is set to receive an additional £1.7 billion in April, a development the Labour chancellor has termed the “largest real-terms funding increase since devolution.” Alongside this, £25 million has been allocated for safety and maintenance efforts concerning abandoned coal tips in Wales. The UK government has also confirmed backing for two hydrogen production projects in Milford Haven and Bridgend, aligning with low carbon initiatives.

Welsh Secretary Jo Stevens highlighted that the Budget illustrates the positive outcomes of collaboration between the two governments. However, the Welsh Conservatives criticized it as a “smash and grab Budget,” warning of severe repercussions, while Plaid Cymru described it as lacking the necessary transformative impact.

The additional funding for Wales results from increased spending in England on devolved matters, allowing for significant investment in critical areas such as education, healthcare, housing, and transportation, according to UK ministers. The £25 million earmarked for coal tip safety follows discussions between Welsh Finance Secretary Mark Drakeford and the UK Treasury aimed at addressing this pressing issue. In total, Wales is home to over 2,500 coal tips, with 360 identified as being at the highest risk.

According to BBC Wales political correspondent Gareth Lewis, this £1.7 billion represents a historic funding boost for Wales since devolution was established. Welsh officials will determine how these funds are allocated, with a primary focus on reducing NHS waiting times. However, these waiting lists have reached unprecedented levels; last year, the Welsh government redirected over £400 million from other areas to support healthcare.

Local councils are bracing for a projected budget shortfall of £559 million in the upcoming financial year, suggesting that £1.7 billion may quickly be absorbed by various needs. The recent contribution towards coal tip safety is viewed as an initial step by the UK government, but future allocations remain uncertain and will depend on ongoing negotiations.

Opposition parties have raised concerns that upcoming increases in Northern Ireland will adversely affect small businesses and that proposed reforms to inheritance tax could negatively impact small family farms in Wales. While today’s announcement regarding coal tip funding was framed as evidence of a renewed cooperative relationship between Labour administrations at both ends of the M4 corridor, community organizations argue that far more than £25 million will be required to address these issues adequately.

In addition to funding for coal tip maintenance, the Budget also includes increased financial support for pensioners and families. Single pensioners will receive an extra £465 annually, while couples on Pension Credit will see an increase of £710 per year. Furthermore, more than 600,000 Welsh pensioners are set to benefit from a 4.1% rise in their state pensions starting next April. Approximately 1.1 million families will also notice their working-age benefits adjusted for inflation, averaging an additional £150 annually from next April.