How is the Welsh Government funded?

Published 30/11/2020   |   Last Updated 03/12/2020   |   Reading Time minutes

The UK Government provides a large proportion of annual funding for the Welsh Government, known informally as the 'block grant'.  The block grant is unhypothecated, meaning the Welsh Government has discretion how it allocates this funding.

When setting the UK budget the UK Government treats the devolved administrations in a similar way to the way it treats UK governmental departments.

​UK spending reviews outline funding available for Welsh Government from the UK Government. The UK Government decides a detailed Autumn Budget​ each year that sets out any adjustments to spending and tax and borrowing requirements including information relating to previous budget initiatives, the Government's financial position and potential future budget proposals.  Any changes to departments with responsibilities devolved to Wales will likely result in a change to funding provided to the Welsh Government.

The Welsh Government is also able to raise funding through devolved and local taxes.