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Welsh Labour aims to freeze income tax
First Minister of Wales Eluned Morgan delivers a speech during the Wales Investment Summit at the International Convention Centre Wales in Newport, December 1, 2025

WELSH Labour is set to launch its Senedd manifesto in Swansea this morning and is expected to pledge to freeze Welsh rates of income tax.

Embattled party leader Eluned Morgan will say that Welsh Labour’s income tax freeze is part of its focus on tackling the cost of living and putting money back in people’s pockets.

She said: “Fairness starts with understanding the pressure families face, but fairness also means action — because fairness means making everyday life that little bit easier.”

But successive Welsh Labour governments have made the same pledge, and opponents say the party should be more ambitious and seek similar powers to Scotland to change the levels of tax allowances.

The much-trailed manifesto is expected to cap single bus fares at £2 in Wales, keep £1 fares for young people and free travel for over-60s and create 20,000 new childcare places.

Ms Morgan is also expected to pledge £4 billion to build new hospitals, same-day mental health support, focus on women’s health and end homelessness in Wales.

But the polls are against Welsh Labour, with the latest YouGov poll for ITV Wales/Cardiff University showing the party in third place on 13 per cent. That is predicted to result in 12 seats, but would lose Ms Morgan her seat in the Ceredigion Penfro constituency.

With Plaid leading on 33 per cent and the Greens predicted to get 10 seats, that means for the first time there would be a majority within the Senedd of parties supporting independence.

The YouGov poll puts Reform UK on 27 per cent and a potential 30 seats, but Nigel Farage’s party is expected to heavily outspend its rivals in the Senedd campaign.

Former first minister Mark Drakeford is stepping down from the Senedd but has said that left-wing parties would team up to stop Reform UK from forming the next Welsh government.

Reform’s Welsh leader Dan Thomas claimed that Mr Drakeford’s comments showed that “Establishment parties will do absolutely anything” to stop “real people from having a seat at the table.”

Mr Drakeford told the BBC he believed most people in Wales would vote for left-leaning parties and the challenge would be for those parties to work together to provide a “stable and progressive government.”

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