Welsh Government Budget 2026-27

If a Budget resolution for a financial year is not passed by the Senedd before the start of that financial year (1 April) then initially only 75% of the budget authorised to be used in the previous financial year is available.

This figure increases to 95% if a Budget resolution has not been agreed by the end of July.

However, an Annual Budget Motion can be tabled by a Welsh Minister and considered by the Senedd during the financial year it relates to – so theoretically the budget for 2026-27 could be passed after 1 April 2026, if the Senedd had not agreed a budget by that point.

The budgets of directly funded bodies such as the Wales Audit Office , Public Services Ombudsman for Wales, Senedd Commission, and the Electoral Commission Wales are also included within the annual budget motion.

In the event that a budget was not agreed, these directly funded bodies would only be able to access 75% / 95% of their budget until an annual budget motion was authorised.

Local authorities in Wales receive the majority of their funding from the Welsh Government are legally required to set their budgets and council tax before 11 March in the financial year preceding the one to which the budget applies. This deadline ensures that billing authorities can issue council tax bills in time for the start of the financial year on 1 April.

Where are these processes outlined

The Welsh Government Budget is agreed by a vote in the Senedd on an Annual Budget Motion as required under Section 125 of the Government of Wales Act 2006.

Section 127 of this 2006 Act outlines what happens in circumstances where the Senedd does not agree an Annual Budget Motion.

Impact on the Welsh Rate of Income Tax (WRIT)

Income tax is technically a temporary tax and must be reapproved each year.

A Welsh rate resolution must be made before the start of the tax year, which begins on 6 April, and can only be made for one tax year and must apply to the whole of that tax year.

The rules relating to the consideration of  Welsh rate resolutions by the Senedd are found in Standing Orders, 20.24A to D.

A Welsh rate resolution can only be considered once the Annual Budget Motion is published, but no earlier than 12 months before the start of the relevant tax year – this is to ensure that Members can only vote on the Welsh rate resolution when all of the information about the Welsh Government’s Final Budget is available.

In addition, the Senedd cannot pass a budget until it has first agreed a  Welsh rate resolution. This is based on the principle that the Senedd cannot take a decision on the spending plans contained in the Annual Budget Motion without first agreeing how the revenues to pay for those funds will be raised through taxation.

Once agreed, a Welsh rate resolution can be cancelled before the start of the tax year, but it cannot be cancelled or changed once the tax year it applies to has started, so from 6 April onwards.