Welsh Conservatives offer home tax deal to back Labour budget.

The Welsh Conservatives have stated that they will support a Labour budget if the devolved government agrees to abolish a tax paid by homebuyers.

On Tuesday, the Welsh government will announce its expenditure plans for the coming fiscal year. First Minister Eluned Morgan has already threatened to reduce frontline services if her Labour government fails to enact a budget.

Darren Millar, leader of the Welsh Conservatives, has written to Baroness Morgan, promising to explore a budget agreement if the Welsh Government considers eliminating the land transaction tax, which is the Welsh equivalent of stamp duty.

Labour is the largest party in the Senedd, but it does not hold a majority. When enacting its last budget in March, the Welsh Government needed the assistance of an opposition member to approve it by a slim margin.

A by-election in the Caerphilly constituency might make the next budget vote even more difficult if the party loses the seat.

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

“While the Welsh Conservatives strongly disagree with the Welsh Labour Government on many issues, we are a responsible opposition that will always try to prioritise the people of Wales. “As part of our strategy to fix Wales, we intend to abolish stamp duty in Wales.

This will assist people get on the housing ladder, enhance housing market mobility, and stimulate the economy. “It will be central to any discussions which may now take place.”

At the Conservative Party convention earlier this month, Kemi Badenoch promised to repeal stamp duty if the Conservatives won the next election. The draft budget for 2026/27 will include spending commitments of more than £27 billion for public services.

The Senedd will vote on the final budget in January.

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