Record £18 billion a year for Wales in Budget

The Chancellor today (27 October) announced Barnett-based funding for the Welsh Government of £18 billion per year – delivering the largest annual funding settlement since devolution over 20 years ago. This includes a £2.5 billion per year spending boost as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.

Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.

As part of the significant spending plans, Wales will receive an average of £18 billion per year in Barnett-based funding representing a 2.6% rise in the Welsh Government’s 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’re focused on what matters most to the British people – the health of their loved ones, access to world-class public services, jobs for the future and tackling climate change.

An additional £2.5 billion per year in Barnett funding means the Welsh Government is well-funded to deliver all their devolved responsibilities while the people in Wales will also benefit from this Government’s commitment to levelling up opportunity and delivering for all parts of the UK.

We are continuing to boost industry and jobs and improve infrastructure and public services throughout Wales.

Secretary of State for Wales, Simon Hart said:

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

The devolved administration in Wales will receive its largest-ever settlement so it can deliver its vital services like health, education and flood protection, while Wales will benefit fully from many of our UK-wide measures including freezes to fuel and alcohol duty, the increase in the minimum wage for thousands of workers and investment in parks and sports facilities.

Levelling up communities across the UK is top of our agenda. Investing more than £120m in 10 projects including the regeneration of Aberystwyth seafront and improving transport links in Rhondda shows how we will achieve this ambition across Wales.

Alongside the funding of a Welsh Veterans’ Commissioner, these measures and others in the Spending Review add up to an excellent package for Wales and its economy.

Targeted funding in Wales
On top of the record funding for the Welsh Government, Wales will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses.

Targeted projects in Wales include:

Over £168 million to be invested in Wales to boost the post-pandemic recovery and enhance the Welsh economy, including:
£121 million of the Levelling Up Fund in 10 projects, including the regeneration of Aberystwyth seafront an important dualling of the A4119 in South Wales and redevelopment of the Theatr Brycheiniog Arts Centre in Brecon.
Over £460,000 of the Community Ownership Fund for three projects in Llandwrog, Pen-y-Waun, and Tredegar that are protecting valued community assets.
Providing £0.9 billion for farmers and land managers and £6.2 million to support fisheries.
A Veterans Commissioner for Wales, 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 reinstate a passenger rail services from Gaerwen to Amlwch on Anglesey.
Accelerating £105m for the Cardiff City Region Deal to fast-track projects that range from innovation and Fintech, to manufacturing and infrastructure.
Establishing a new trade and investment hub in Cardiff to grow trade for Wales.
UK-wide support
As a result of our strong United Kingdom, Wales will benefit from:

A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
New funding for the British Business Bank to establish a £130 million fund in Wales, helping Welsh businesses to get the funding they need.
The new £1.4 billion Global Britain Investment Fund which will support investment directly into Wales.
A record £20 billion by 2024-25 in Research and Development supporting innovation in Wales.
Confirmation that total funding will, at a minimum, match the size of EU Funds in Wales each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Wales with essential numeracy skills.
£120 million 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 Usage and Storage (CCUS) Infrastructure Fund, bringing investment to North Wales
An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
Freezes to fuel duty for the twelfth consecutive year, as well as a freeze on alcohol duty and a freeze on Vehicle Excise Duty for heavy goods vehicles.
£140 million to provide revenue support for hydrogen production, including the Holyhead Hydrogen Hub, and heavy industrial firms across the UK who adopt carbon capture, utilisation and storage.