Question to the HM Treasury:

To ask His Majesty's Government what assessment they have made of the adequacy of the Welsh Government’s annual capital borrowing limit of £165 million for 2026–27; and whether they will consider further changes to the borrowing limits as part of any review of the Welsh fiscal framework.

At Autumn Budget 2025, the UK Government announced a significant package of additional fiscal flexibilities for the Welsh Government, including increases to its capital borrowing and Wales Reserve limits. The annual resource and capital Wales Reserve drawdown limits were increased by 10 per cent for 2026-27 and will be uprated annually in line with inflation from 2027-28. The UK Government also provided a temporary waiver of the annual drawdown limits for 2026-27.

The UK Government continues to consider fiscal policy in the usual way. The Chief Secretary regularly engages with her Welsh Government counterparts on the Welsh Fiscal Framework and wider devolved government funding arrangements, including through the Finance: Interministerial Standing Committee.