Welsh Budget 2025 to 2026

16 Dec 2024

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The Cabinet Secretary for Finance & Welsh Language, Mark Drakeford delivered the 2025-26 Welsh Budget on 10 December.

Described by the Cabinet Secretary as “a budget for a brighter tomorrow, providing public services and Welsh citizens with investments in their future that have been denied to them for far too long”, the budget included the following commitments for 2025-26:

Over £600 million additional revenue and capital funding for health and social care, to cut the longest NHS waiting times and improve services;
Additional funding to repair and monitor coal tips (alongside new legislation to improve disused coal tip safety);
£81 million to build more homes for social renting;
More than £100 million more for the education budget and a 4.3% increase in the local government settlement, which will help fund schools, social care and other services;
£181.6 million to improve rail services;
£3.7 million to accelerate planning decisions and digitise planning services; and
Two new funds to maintain Wales’ road network – fixing potholes and repairing defects.

The following measures will be of particular interest to the agents of Welsh taxpayers:

Welsh Rate of Income Tax (WRIT)

There will be no changes to the Welsh Rate of Income Tax in 2025-26. Rates and bands will remain the same as those applicable in England and Northern Ireland.

Land Transaction Tax (LTT)

The Higher Residential Rates of Land Transaction Tax (LTT) apply to purchases of additional residential properties. These rates were increased from 11 December 2024 as follows:

Band	Rate from 11/12/24	Rate from 22/12/2020
£0- £180,000	5%	4%
£180,000- £250,000	8.5%	7.5%
£250,000- £400,000	10%	9%
£400,000- £750,000	12.5%	11.5%
£750,000- £1.5 million	15%	14%
£1.5 million and over	17%	16%

Landfill Disposals Tax (LDT)

From 1 April 2025, the lower rate of Landfill Disposals Tax (LDT) will be increased to £6.30 from £3.30 per tonne. The standard rate will increase to £126.15 from £103.70. The unauthorised rate, which is 150% of the standard rate, will increase to £189.25 from £155.55.

Business Rates

The non-domestic rates multiplier will be capped at 1% for 2025-2026 and retail, leisure and hospitality businesses will continue to receive 40% relief towards their bills.

For more information, see https://www.gov.wales/written-statement-draft-budget-2025-26-welsh-taxes