Some way to go to find final Welsh Government budget solution

Responding to the publication of the Welsh Government’s outline Draft Budget 2026-27, director of the Welsh NHS Confederation, Darren Hughes, said:

“It’s reassuring to see the Draft Budget 2026-27 indicating at least the same amount of funding as this year in real terms for each government department. NHS leaders recognise a significant proportion - over 50% - of the budget is for health and social care. 

“Many public services, including social care, continue to face rising demand and costs, with the public sector hit particularly hard by the rise in Employers’ National Insurance Contributions, for which the UK Government did not provide the full funding for Wales. 

“As was evidenced in the recent Audit Wales report on the NHS’s finances, NHS bodies are delivering ever-increasing levels of savings in their attempt to balance their books, including further progress on driving down spend on agency staff.

“But, as the Auditor General highlighted, despite these huge efforts, the backdrop of significant demand, inflationary pressures and growing pay costs means it continues to be exceptionally challenging for the NHS to live within its means. 

“If we are to achieve a sustainable health and social care system for future generations, we need a sustainable, long-term, funded plan for capital investment, a shift to prioritising prevention across sector budgets and sufficient funding for social care services, starting with parity of pay and conditions with the NHS. 

“There is some way to go to reach a budget that will achieve the best outcomes for the people of Wales.”