DIRE warnings have been issued if the Welsh government budget published today is voted down by opposition parties.

Finance Secretary Mark Drakeford warned that if the budget for 2026-27 fails to be passed, then councils and public services in Wales could see dramatic job cuts and spending slashed.

The total amount allocated for public spending is £27.6 billion, with each government department having its spending raised by 2 per cent.

The estimate is based on the Office for Budget Responsibility forecasts, which Welsh officials say will mean a real-terms increase.

The budget increase is also based on a higher than usual settlement from Chancellor Rachel Reeves last year.

“After more than a decade of sustained austerity, the UK government announced our revenue and capital budgets in June for the next three and four years,” Mr Drakeford said.

“We will receive an extra £5bn over the spending review period and I very much wish that I could take advantage of the new three and four horizon provided by the Chancellor.

“But, in the final months of this Senedd term, I do not believe that setting spending plans deep into the next four years would have real credibility.”

The finance secretary confirmed that income tax rates in Wales will remain unchanged, but will still raise £3.9bn in 2026-27.

“The vast bulk of income taxpayers in Wales have incomes which qualify for the standard rate only,” Mr Drakeford told the Senedd.

“I do not intend to add to the challenges they face, at a time when the impact of rises in the cost of living remain very real.”

The National Association of Head Teachers (NAHT) Cymru warned the budget could have dire consequences, and called on the Senedd to provide more money for schools.

“School leaders tell us they are facing budget deficits and having to make unpalatable choices including cutting staff and resources,”  NAHT Cymru’s Laura Doel said.

Public-sector trade unions might also be concerned at the estimate of an increased pay bill for the public sector of 2.2 per cent.

The Welsh Labour government is short of a majority in the Senedd and will need at least two other opposition members to abstain or vote with them to pass the budget.