What assessment has the Welsh Government made of the impact of the upcoming 0.9 per cent real terms decrease in its capital budget over the latest spending review period?
The UK Spending Review provides an indicative capital settlement over 4 years. Over £500m more capital funding has been allocated to Welsh Government departments in 2025-26 which is welcome and vital investment following a challenging financial period. The Welsh Government will present proposals for our capital budget and the impact of those plans as part of the annual budget process.
The capital settlement increases by £180m above the 2025-26 level in 2026-27 and then drops slightly in subsequent years. However, on average the capital settlement for 2025-26 to 2029-30 is 0.8% higher in real terms than in 2023-24.