Chancellor John Healey Allocates £450 Million to Wales in Budget

Chancellor John Healey introduced the first annual Budget under Prime Minister Andy Burnham, allocating an additional £450 million to the Welsh Government via the Barnett formula for public services and infrastructure. The budget includes UK-wide measures such as extending the fuel duty freeze until July, scrapping gas standing charges next year, and increasing state pensions and the national living wage.

In Wales, the funding supports specific projects including £30 million for Cardiff Parkway railway station, £11 million for the Aberavon Bridge replacement, and £2.5 million for M-SParc in Anglesey. The Welsh Government also confirmed it will provide a £100 energy payment to approximately one million homes, mirroring a similar measure for lower-band council tax households in England.

Welsh Finance Minister Elin Jones condemned the settlement, arguing that inflation offsets the gains and renders the funding a real-terms cut. She warned that the fiscal position is worse than before the announcement, which will force tough choices for the upcoming Welsh Budget on November 17. While Secretary of State for Wales Stephen Kinnock defended the measures as providing breathing space for households, Conservative leader Kemi Badenoch criticized the broader budget for failing to address national debt and overtaxation.