Education
Made-in-Wales investment model avoids ‘crippling’ PFI trap, says Drakeford
A “CREATIVE WORKAROUND” to limited borrowing powers has delivered an extra £1.1bn for Wales while avoiding the same “crippling” pitfalls as PFI, the finance secretary has claimed.
Speaking in the Senedd, Mark Drakeford explained £1.14bn for projects including the new Velindre cancer centre and A465 works “simply would not have happened” otherwise.
The Welsh Government designed the mutual investment model (MIM) – an alternative to the controversial UK private finance initiative (PFI) policy – as a way to leverage private finance due to a scarcity of funding for longer-term infrastructure.
Prof Drakeford told Senedd Members the Welsh Government’s capital budget has totalled around £15bn this term, so the model has bolstered spending by 7.5%.
Arguing the government’s decision to reject PFI has been vindicated, he said: “Wales suffers neither from the stranded assets that have occurred in England nor do we face the ongoing disputes that surround the return to public ownership of facilities from PFI stewardship.
“Most of all, we have not faced the crippling impacts on resource budgets that PFI repayments have caused and continue to cause elsewhere.”
Prof Drakeford said the additional £1.14bn includes £590m to complete the dualling of the A465 and £312m for 21st-century cancer care at the Velindre NHS trust.
He told the Senedd the “made-in-Wales” approach is different from earlier PFI models because the Welsh Government takes a stake of up to 20% in each MIM scheme.
This ensures the public interest is represented on boards and enables the public sector to earn a return on investment in infrastructure that can be recycled, he said.
Addressing concerns about long-term costs, the former First Minister explained repayments will equate to a “manageable” 0.4% of the day-to-day budget even at the peak.
He said: “In this year, we are providing £50m in revenue to support the borrowing through the mutual investment model. At the moment, that will rise to £100m in the most expensive year of the scheme and that’s in 2028/29.”
During Tuesday’s (October 7) statement, he added that modelling suggests every £1 invested as public equity in a MIM project will earn more than £3 in return.

The Conservatives’ Sam Rowlands supported the “innovative” way of investing in modern schools, hospitals and roads though he pointed out that public bodies in Wales did use PFI.
He warned that PFI models were “supercharged” under Tony Blair’s UK Government after being launched by John Major, saddling future taxpayers with a £215bn commitment.
Plaid Cymru’s Heledd Fychan expressed concerns about constraints on Welsh Government borrowing, with councils having greater flexibility, leading to the creative workaround.

Rhys ab Owen, who sits as an independent, similarly criticised “pitiful” borrowing limitations, with Cardiff and Swansea councils’ combined powers exceeding the Welsh Government’s.
Labour’s Mike Hedges asked: “Is the mutual investment model PFI-lite? While the worst excesses of PFI – … such as the £20 to change a light bulb – will not occur, it is still a long-term commitment that will have an effect on revenue budgets for a long time.”
Prof Drakeford said the Welsh Government always seeks to exhaust the cheapest money first and MIM is the last form of borrowing ministers turn to. But he stressed: “This is a choice between using this form of investment or not being able to invest at all.”
Education
Manifesto warns Welsh nurseries are ‘fighting to survive’
Nurseries in Wales are warning that rising costs and underfunded childcare places are putting providers under severe pressure
NDNA CYMRU has launched its manifesto, The Best Start for Children in Wales, calling on the next Welsh Government to make early childhood play, learning and care a priority for every family and community.
The organisation says early findings from its nursery survey show 89% of day nurseries in Wales make a loss on sessional places, while 79% say the full day rate does not cover their costs.
Staffing bills have risen by an average of 10.5%, while nurseries have increased fees to parents by an average of 7.5%, meaning many providers are absorbing part of the extra cost themselves.
One nursery told NDNA: “We can’t increase prices as parents are struggling to pay their bill already.”
NDNA Cymru says the pressure is forcing some nurseries to spend less on resources, reduce staff hours and cut training, with one respondent saying they had been forced to lay off three members of staff.
The manifesto sets out four priorities for the next Welsh Government. These include a national review of funded childcare, funding rates that reflect the real cost of delivery, proper support for Additional Learning Needs, protection for existing providers before new capital projects are approved, and a fully funded workforce strategy.
Tim McLachlan, Chief Executive of NDNA Cymru said: “The next Welsh Government has the opportunity to do things better. We are calling on all parties to put children at the heart of any future policy, making sure it is properly funded and delivered consistently in communities across Wales.
“Our survey of day nurseries shows that they face unique funding pressures. It cannot be good for children, families or the economy to have nurseries fighting just to survive when we want to see them thrive.
“Parents rightly want more support to make childcare more affordable. But to be fair to everyone and make sure that policies can be delivered, political parties must make sure any promise they make is fully funded.”
NDNA Cymru said 92% of nurseries responding to its survey were either operating at a loss or only breaking even.
The survey also found that the new £6.67 hourly funding rate for three and four-year-olds does not cover costs for many providers. For full day care, the average shortfall was £1.56 per hour per child, rising to £2.05 for sessional care.
One nursery said: “In the 39 years I have been operating successfully and at a very high level of quality, this is the most challenging and disheartening time for my business in relation to financial sustainability.”
Another said: “Funding and fees are a constant worry alongside staff recruitment and retention; childcare is a lot more challenging and increases each year make it harder and harder.”
NDNA Cymru said it wants a fair and consistent childcare system across Wales, backed by national guidance, proper investment in staff, and adequate ALN funding so children’s needs can be met.
Education
College learner receives prestigious Welsh award
A PEMBROKESHIRE College learner has been recognised with a prestigious award celebrating her commitment, achievement and future potential.
Eleanor Edwards, a second-year Travel and Tourism learner, received the award from the Worshipful Livery Company of Wales as part of its annual College Awards programme.
The scheme supports young Welsh talent and recognises individuals undertaking academic and vocational studies, as well as members of the armed forces and those involved in community service.
Support for future career
The award will help Eleanor further develop her skills and broaden her learning experience through additional courses made possible by the funding.
The College said Eleanor’s success reflects both her hard work and ambition, as well as the high standard of vocational learning delivered at Pembrokeshire College.
Speaking on behalf of the Worshipful Livery Company of Wales, Sylvia Robert-Sargeant said: “We are delighted to have been involved in the selection of Eleanor Edwards as an outstanding second-year learner studying for a Diploma in Travel and Tourism at the College.
“We wish Eleanor every success, both in participating in the extra courses made possible by this award and in her future studies and career.”
Ambition to join cabin crew
Pembrokeshire College Principal Dr Barry Walters also congratulated Eleanor on her achievement.
Dr Walters said: “We are delighted to congratulate Eleanor on receiving a Worshipful Livery Company of Wales award.
“This achievement will support her continued progression, enabling her to gain the additional qualifications needed to pursue her ambition of a career in air cabin crew.
“We also extend our sincere thanks to the Worshipful Livery Company of Wales for their ongoing support and for the time invested in the selection process.”
The College said it was proud to see Eleanor acknowledged through the respected awards programme and wished her every success as she continues her studies and prepares for a future career in the travel and tourism industry.
Picture: Learner Eleanor Edwards with Sylvia Robert-Sargeant and Pembrokeshire College Principal Dr Barry Walters.
Education
Police dogs visit Greenhill School for community afternoon
PUPILS at Ysgol Greenhill were given a close-up look at the work of police dogs during a visit from local officers.
Officers from the Tenby Neighbourhood Policing and Prevention Team attended the school on Thursday (Apr 23), joined by police dog handler PC 301 Bain and police dogs Stan and Archie.
The visit gave pupils and staff the chance to learn more about the role of police dogs, their training, and the work they carry out alongside officers.
Police said the afternoon was also an opportunity for positive engagement and relationship building between young people and the local policing team.
The visit appeared to be a hit with pupils — and with Stan and Archie, who were said to have enjoyed plenty of fuss and attention during the afternoon.
Tenby, Saundersfoot and Narberth Police thanked Greenhill School for hosting the visit.

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