2021 Welsh Labour–Plaid Cymru agreement

In December 2021, the Welsh Labour government and Plaid Cymru signed a three-year co-operation agreement, where the two parties agreed to work together in 46 policy areas.

Reports of the two close to reaching a final agreement were raised on 19 November 2021, although details were not provided as it still required ratification by both parties.

[2] Welsh Labour leader and first minister Mark Drakeford stated the agreement would bring a "stable Senedd" which can deliver "radical change and reform".

Plaid Cymru leader Adam Price, called it "historic" for Wales, and allowed the party to both push its main priorities and criticise Labour on issues not in the agreement.

[20] In December 2023, Mark Drakeford clarified that as part of the deal Plaid Cymru could command influence over the Welsh Government's budget, beyond the agreed areas.

[22][23] In May 2023, Ken Skates, Labour MS and former Welsh Government economy minister, called for the agreement to end, following a report into inappropriate behaviour tolerated within Plaid Cymru.

[24][25] Following the report, Mark Drakeford, Welsh Labour leader, suggested the agreement is under review following the developments within Plaid Cymru.

[26] In December 2023, David Rees, Labour MS, questioned whether the co-operation deal was being prioritised for funding over other parts of the Welsh Government's programme.

First Minister, Mark Drakeford, stated that funding commitments to the deal were "ring-fenced", but Plaid Cymru can influence the budget, while Plaid Cymru leader Rhun ap Iorwerth, stated the deal's commitments were "a small percentage" of the £20 billion budget.

[28] On 17 May 2024, Rhun ap Iorwerth announced that Plaid Cymru had withdrawn from the co-operation agreement with Welsh Labour,[29][30] saying "I remain deeply concerned that the First Minister has failed to pay back the £200,000 donation to his leadership campaign from a company convicted of environmental offences, and believe it demonstrates a significant lack of judgment.

[14] On 1 December, UK Conservative Secretary of State for Wales, Simon Hart, called it an "absolute travesty", that allows Plaid Cymru to "claim credit" for government policies while also acting as an opposition party.

[34] In December 2021, Labour MS Alun Davies, stated that while the deal "might not be a coalition, [...] it looks like one", and that Plaid Cymru is "clearly part" of the Welsh Government.

[13] In July 2022, the Welsh Conservatives claimed that Plaid Cymru leader, Adam Price failed to challenge the Labour first minister, Mark Drakeford because of the deal.

[35] In February 2023, Hefin David, Labour MS, criticised the agreement, saying it gave Plaid Cymru "power without responsibility".