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Evening Standard
Evening Standard
Politics
Eleanor Storey

Welsh Conservatives offer home tax deal to back Labour budget

The Welsh Government will outline its spending plans for the next financial year (PA) - (PA Archive)

The Welsh Conservatives have suggested they will support a Labour budget if the devolved government backs its plans to scrap a tax paid by homebuyers.

On Tuesday, the Welsh Government will outline its spending plans for the next financial year.

First Minister Eluned Morgan has already warned of cuts to frontline services if her Labour government does not succeed in passing a budget.

Darren Millar, leader of the Welsh Conservatives, has written to Baroness Morgan, offering to discuss a budget agreement if the Welsh Government considers scrapping the land transaction tax, the Welsh equivalent of stamp duty.

While Labour is the largest party in the Senedd, it does not have a majority.

When passing its last budget in March, the Welsh Government needed the help of an opposition member to get it through by a tight margin.

An upcoming by-election in the Caerphilly constituency could make the next budget vote even more difficult if the party loses the seat.

Mr Millar said: “I have written in good faith to the First Minister to offer an opportunity to discuss next year’s Welsh Government budget.

“While the Welsh Conservatives fundamentally disagree with the Welsh Labour Government on many things, we are a responsible opposition that will always strive to put the people of Wales first.

“Our ambition to scrap stamp duty in Wales as part of our plan to fix Wales, will help people get onto the housing ladder, improve mobility in the housing market, and boost the economy.

“It will be central to any discussions which may now take place.”

At the Conservative Party conference earlier this month, Kemi Badenoch promised to abolish stamp duty if the Conservatives win the next election.

The draft budget for 2026/27 will set out spending plans worth more than £27 billion for public services.

The Senedd will vote on the final budget in January.

Speaking at First Minister’s Questions, Lady Morgan told Mr Millar she is “very much open” to a discussion.

She said: “Our intention as a Labour Government is to make sure we deliver public services that matter to the people in Wales.

“When it comes to public services, I am very much open to a conversation, I am very pleased that you have written to me today.

“I think this demonstrates grown-up politics, this demonstrates the fact that what we need is to pass a budget.

“I’m clearly not going to negotiate on the floor of the Senedd but our door is open and let’s make sure that we do what is right for the people of Wales and not see a situation where our public sector is crashed.”

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