Labour budget deal expected with Lib Dem Dodds

A deal to secure the Welsh government's spending plans for the coming months is expected to be announced on Thursday, with support from Liberal Democrat Jane Dodds.

Extra funding for childcare, councils and transport, and a ban on greyhound racing, are likely to be part of the agreement with Dodds, the party's Welsh leader and only Senedd politician.

Labour ministers need the help of at least one MS from the Welsh opposition to get their £26bn budget plans passed in the Senedd.

Finance Secretary Mark Drakeford is thought to have about £100m of wriggle room to fund a deal.

Ministers faced losing more than £4bn in the next financial year in funding if talks failed.

The budget is the source of most of the cash for Welsh government funded services, including the NHS, education and other services.

Healthcare has been offered hundreds of millions of pounds more next year to tackle record high waiting times.

All departments saw an increase, but there are concerns at how much will be absorbed by increased National Insurance contributions, as well as the levels of funding for culture and the arts after earlier cuts.

Labour has been faced with cutting a fresh budget agreement this year after the co-operation deal with Plaid Cymru came to an end in the summer.

Plaid had not ruled out working with the Welsh government again but made significant demands of Labour's Westminster government, including the devolution of the Crown Estate and cash from high speed rail.

According to Plaid, no talks with them have happened, while Labour has been in discussions with Dodds since the draft budget was tabled last December.

Meanwhile the Tories ruled themselves out of a budget deal, vowing to vote it down when the final plans are tabled next month.

Dodds has said throughout that she wants to see more for childcare, social care and local authorities.

The former first minister turned Finance Secretary Mark Drakeford has indicated some leeway on childcare cash and funding for councils - which also support social care.

But it was a surprise that a ban on greyhound racing - announced by the Welsh government earlier this week - could be part of the deal.

As a rescue greyhound owner, Dodds is a passionate speaker on the topic. She told the Senedd on Tuesday that racing dogs undergo "needless" suffering.

The Greyhound Board of Great Britain accused ministers of giving way to pressure from "the extreme animal rights movement".

No date has been set for the ban, although the minister responsible said it could happen before the next election in May 2026.

The ban is not a part of the budget itself and would likely need a law of one kind or another - likely a full bill or a set of regulations - to be drawn up.

Final budget plans for the next financial year will be published on Thursday afternoon, ahead of a final vote in the Senedd in March.

It is understood that the Heart of Wales line, which runs from Swansea through mid-Wales to Shrewsbury, will form part of the deal.

Dodds, who is an MS for Mid and West Wales, has been campaigning against cuts to services.

By Gareth Lewis, BBC Wales Political Editor

With the deal apparently done, the inquest begins.

Has Jane Dodds managed to get funding that will make a real difference to the areas that matter to her - especially for social care, childcare and local councils?

£100m of wriggle room might sound like a lot, but it's not mega bucks, especially if it stretches over a number of areas.

To give you an idea of how much some of the demands might cost, local councils say that guaranteeing each of them a minimum funding increase of 4% would set Mark Drakeford back by another £13m.

And one other thought, greyhound racing doesn't often appear in budget deals.

Had the Welsh government not agreed to bring in a ban would the deal have been off?