Wales record £ 18bn per year in budget

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  • The UK government will provide a record £ 18 billion a year to the Welsh government.
  • Wales will also benefit from UK-wide support for people and businesses, green jobs and investments to expand opportunities.
  • Targeted funding will support local projects across Wales, including road and infrastructure improvements, investments in local communities and funding for businesses.

The Chancellor announced today (27 October) Barnett-based funding for the Welsh government of £ 18bn per year – offering the largest annual funding settlement since devolution more than 20 years ago. This includes a spending increase of £ 2.5bn per year as part of a budget and spending review that strengthens the economy across the UK.

Rishi Sunak laid out a plan to meet the priorities of the British people by investing in stronger public services, increasing opportunities, stimulating business growth and helping working families meet the cost of living.

Under large spending plans, Wales will receive an average of £ 18bn per year in Barnett-based funding, which represents a 2.6% increase in the Welsh government budget each year. The Welsh government will now receive around £ 120 per person for every £ 100 per person of equivalent UK government spending in England.

Chancellor of the Exchequer, Rishi Sunak said:

This is a budget for the whole of the UK. We focus on what matters most to Britons: the health of their loved ones, access to world-class public services, jobs for the future and the fight against climate change.

Additional funding of £ 2.5bn per year from Barnett means the Welsh government is well funded to carry out all of its delegated responsibilities, while the people of Wales will also benefit from this government’s commitment to increase opportunities and supply all parts of the UK.

We continue to boost industry and jobs and improve infrastructure and public services across Wales.

Wales Secretary of State Simon Hart said:

This is a fantastic budget for Wales, delivering significant investments directly to people, businesses and communities across the country.

Decentralized government in Wales will receive its largest settlement on record so that it can deliver vital services like health, education and flood protection, while Wales will fully benefit from many of our UK-wide measures, including freezing fuel and alcohol taxes, increasing the minimum wage for thousands of workers, and investing in parks and sports facilities.

Upgrading communities across the UK is high on our agenda. Investing over £ 120million in 10 projects, including the regeneration of Aberystwyth seafront and improving transport links to Rhondda, shows how we will achieve this ambition across Wales.

Besides funding for a Welsh Veterans Commissioner, these and other measures in the spending review add to a great package for Wales and its economy.

Targeted funding in Wales

In addition to record Welsh Government funding, Wales will benefit from the UK government’s commitment to invest in people, jobs, communities and businesses.

Targeted projects in Wales include:

  • Over £ 168million to invest in Wales to boost post-pandemic recovery and improve the Welsh economy, including:
  • £ 121million from the Leveling Up Fund in 10 projects, including the regeneration of Aberystwyth seafront, a major doubling of the A4119 in South Wales and the redevelopment of the Theatr Brycheiniog Arts Center in Brecon.
  • Over £ 460,000 from the Community Ownership Fund for three projects in Llandwrog, Pen-y-Waun and Tredegar that protect valuable community assets.
  • Provide £ 0.9bn to farmers and land managers and £ 6.2m to support fisheries.
  • A Wales Veterans Commissioner, who will work to improve the lives and opportunities of the Welsh Veterans Community.
  • Up to £ 50,000 to develop an early stage proposal to restore passenger rail service from Gaerwen to Amlwch on Anglesey.
  • £ 105million acceleration for the Cardiff City Region Deal to accelerate projects ranging from innovation and fintech to manufacturing and infrastructure.
  • Establish a new trade and investment center in Cardiff to develop trade for Wales. UK-wide support

Thanks to our strong United Kingdom, Wales will benefit from:

  • A 50% reduction in customs duties on domestic air passengers for flights between England, Scotland, Wales and Northern Ireland and additional new funding of £ 22.5million in forecast recommendations from the Union Connectivity Review, where we will work with decentralized administrations to improve UK-wide connectivity.
  • New funding for the British Business Bank to establish a £ 130million fund in Wales, helping Welsh businesses get the finance they need.
  • The new £ 1.4bn Global Britain Investment Fund which will support investments directly in Wales.
  • A record £ 20bn by 2024-25 in research and development supporting innovation in Wales.
  • Confirmation that total funding will at least match the size of EU funds in Wales each year through the UK’s Shared Prosperity Fund of over £ 2.6bn, which will invest in skills , individuals, businesses and communities, including through ‘Multiply’, a new adult math program that will provide people in Wales with essential math skills.
  • £ 120million for a new Future Nuclear Enabling Fund to support nuclear projects, with Wylfa in Anglesey, North Wales, as a potential site.
  • Selection of the Hynet cluster as one of the first clusters under the Carbon Capture, Use and Storage (CCUS) Infrastructure Fund, bringing investments to North Wales
  • An increase in the national minimum wage of £ 9.50 an hour, with young people and apprentices also seeing increases.
  • Freeze on fuel duties for the twelfth year in a row, as well as a freeze on alcohol duties and a freeze on excise duties on vehicles for heavy goods vehicles.
  • £ 140million to support revenue from hydrogen production, including the Holyhead Hydrogen Hub, and UK heavy industrial businesses embracing carbon capture, use and storage.


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