The Senedd could face a £22m funding gap and run out of money to pay staff, politicians and contractors by January 2027, the Welsh Parliament’s speaker has revealed.

Elin Jones, Ceredigion MS and the presiding officer or Llywydd, warned of dire knock-on effects for the Senedd of a failure to agree the Welsh Government’s 2026/27 budget.

Labour lacks a majority and needs opposition support to pass its spending plans.

If the deadlock is not broken, the Senedd – like the government – would be forced to operate on 75 per cent, and subsequently 95 per cent, of this year’s budget in the next financial year.

Ms Jones said such a scenario would present a significant financial challenge, resulting in the Senedd effectively running out of cash after only nine months in January 2027.

She told the Senedd’s finance committee that expansion from 60 politicians to 96 at the May 2026 election will cost about an extra £13m.

Ms Jones, who chairs the Senedd commission, wrote: “This represents the principal factor behind a potential funding gap of around £22m.

“Such a shortfall could not be managed by simply reallocating resources, as the majority of the commission’s budget is committed to staff costs and contractual payments.

“Any reduction in these areas would likely incur further costs, such as redundancy payments or early termination penalties, thus intensifying budgetary pressures and significantly limiting the resources available to support the parliament at the outset of the new Senedd.

“If the Senedd were in this position, the budget would run out after month nine.

“This would mean an inability to pay staff, contractors, members and their support staff from this point.”

Ms Jones, who will stand down after two terms as Llywydd next year, suggested the Senedd would try to bridge the gap through a supplementary budget motion following the election.