Welsh NHS bosses call for multi-year health funding

Senior figures within the Welsh NHS are urging the Welsh government to move away from annual budgets in favour of multi-year financial settlements. This request comes ahead of the unveiling of draft spending plans for the 2027-28 financial year, which are due to be presented by ministers next week.

The NHS currently consumes nearly half of the £27.5bn annual budget allocated by the Welsh government. However, the Welsh NHS Alliance, previously known as the Welsh NHS Confederation, claims that year-to-year funding hinders the ability to implement long-term service improvements.

The alliance submitted written evidence to the Senedd's health committee ahead of Thursday's sessions to examine 2027-28 spending. The group stated: "There is a risk that annual planning cycles can constrain longer-term transformation, where benefits often require multi-year investment before being realised."

Furthermore, the organisation suggested that ministers should focus on shifting the system from one dedicated to treating illness to one that actively promotes health and wellbeing. It noted: "This requires multi-year funding certainty and transparent criteria for investment and disinvestment."

The Welsh government stated it is "working to improve services now while making the longer-term changes needed". Tuesday's draft budget requires support from at least one opposition party to pass in the Senedd, with discussions currently underway.

Last week, the minority Welsh government secured the passage of spending adjustments for the upcoming five months with the help of Labour, including a £100m allocation intended to reduce NHS waiting times.