Labour and Plaid Cymru reach budget deal, sources say

"Multiple sources have told the BBC that the two sides had sketched out an agreement, which should mean Labour avoids a defeat when their spending plans are put to a vote in January. BBC Wales was told Plaid had been promised more money for health and local government. The deal is expected to be announced later. The Welsh government has been asked for comment."

"The Welsh Labour government has been in budget talks with a number of parties in recent weeks. Labour is not able to pass the budget on its own because the party is two votes short of a majority in the Senedd. The spending plans pay for the NHS in Wales, alongside schools, local government and other public services controlled by Cardiff-based ministers."

The Welsh government has sketched a budget agreement with Plaid Cymru that should prevent Labour losing a vote on spending plans in January. Plaid was promised additional funding for health and local government. Labour cannot pass the budget alone because it is two votes short of a Senedd majority. The spending plans fund the NHS in Wales, schools, local government and other Cardiff-controlled public services. Plaid had pushed for more money for health and councils amid warnings of significant council cuts and council tax rises. The Welsh Conservatives sought stamp duty cuts and criticised the first minister's negotiating approach.

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