Welsh Labour and Plaid Cymru have unveiled their co-operation agreement, which will involve working together across a number of policy areas.

The government, led by First Minister Mark Drakeford, holds 30 seats in the Senedd – one seat short of an overall majority – while the Conservatives hold 16.

Plaid Cymru, meanwhile, is the third largest party with 13 seats.

The two parties say this is a new form of political working arrangement. 

Mr Drakeford said: “The Welsh Government has an ambitious Programme for Government, which it will deliver over this Senedd term. But we do not have a monopoly on good ideas and we will work with progressive parties where we have shared and common interests to benefit people in Wales.

“This Co-operation Agreement brings the Welsh Government and Plaid Cymru together to respond to some of the most pressing issues facing Wales today, such as climate change and the energy and cost-of-living crisis.

“We can achieve more for people in Wales by working together and the co-operation agreement is both a response to the external challenges we face and a chance to build on the opportunities in our future. It will also help us secure a stable Senedd over the next three years, capable of delivering radical change and reform.

“These commitments build on our shared values of social solidarity, a sustainable planet and a vibrant democracy.” 

Adam Price, leader of Plaid Cymru said:

“Almost a quarter of a century ago, people in Wales voted for self-government for Wales, with a promise of a new type of politics.

“They placed their trust in a new democracy with an instruction to work differently – inclusively and co-operatively. 

“The challenges we face require real ambition to deliver radical ideas. The fallout from leaving the European Union, the legacy of the pandemic, and the UK Government’s determination to erode the Senedd’s powers all increase the need for transformational change.

“Taken together, the bold policy pledges will unite Wales and benefit every generation, from all primary school pupils receiving free school meals to a national care service, free at the point of need.

“I am pleased this pioneering co-operation agreement is founded on common ground on a range of issues that will make a long-lasting difference to people’s lives.”

The co-operation agreement promises to respond to some of Wales’ biggest challenges.

As part of the agreement, a publicly-owned energy company for Wales could be created to encourage community-owned renewable energy generation; there will be further investment in flood defences and new measures to strengthen the Welsh language and support for young people’s mental health.

The two parties have stressed that this is not a coalition; Plaid Cymru Members will not be joining the Welsh Government as Ministers or Deputy Ministers.

Plaid Cymru will appoint a designated lead member for the agreement and committees made up of Welsh Ministers and Plaid Cymru designated members will be established to reach agreement on issues covered by the co-operation agreement.

Funding has been put in place as part of the co-operation agreement and will be reflected in the draft Budget, when it is published in December.

All issues outside the co-operation agreement will be handled in the normal course of political engagement.

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