Local Government
Pembrokeshire council underspend of £1m is predicted
PEMBROKESHIRE County Council, which has had many fears of budgets firmly in the red in recent years, is on course to end the financial year £1m in credit.
A report to be heard at the council’s corporate overview and scrutiny committee, meeting on November 20, will outline the financial position for the second quarter of the current financial year, with a projected outturn of £325.6m for the agreed £326.6m budget, representing a £1m saving.
However, that figure is lower than the first financial quarter of 2025-’26 picture, which predicted an underspend of an even more impressive £2.2m.
Pembrokeshire County Council actually ended the last financial year underspending by £2m, in part due to an extra £1.2m raised through second homes tax, councillors have previously heard.
In recent years the situation has been far bleaker, with third quarter projections for the 2023-24 budget of an overspend of £6.6m, £3m up from quarter two’s £3.6m, which in itself was a reduction of the previous quarter one figure of a £4.8m predicted overspend.
The end of the 2024 financial year reduced that to a £3m overspend, and by November 2024 – the 2024-25 year – the council was predicted to overspend by £3.9m, later, this February that prediction reduced to £1.4m, before the final underspend.
The November 2025 committee report, and any responses, will later by considered by Cabinet on December 1.
A report for members says: “The increase in rolling budget expenditure and income is due to the receipt of grants confirmed during Q2, where possible this has been used to fund core expenditure,” adding a reduced net contribution from reserve relates to additional appropriations made into reserves as a consequence of waste management Extended Producer Responsibility (EPR) payment requirements.
It says a “continued increase in level of demand, complexity and cost of packages within our School ALN provision, Children’s Services and Adult Services experienced during 2023-24 and 2024-25 has been recognised in base budget increases in these service areas for 2025/26,” adding: “It is hoped that the work being undertaken to try to manage the increase in demand and reduce the cost of packages will help to flatten these demand levels into 2026-27 and over the medium term financial plan.”
It says pressures include a shortfall of £1m on budgeted assumptions in funding towards the increased cost of Employers’ National Insurance Contributions, and a 2025-26 teachers pay award resulting in an additional £0.4m pressure on school budgets in 2025-26 and a further £0.7m full year base pressure for 2026-27; but there is a projected underspend of £3.281m in Capital Financing Cost.
Director of Resources Jon Haswell in the report says: “It is pleasing to note that we are still projecting a year end underspend at the end of Quarter 2, albeit less than that projected at Quarter 1, primarily due to an underspend in capital financing costs more than offsetting all other additional budget pressures.”
Members are recommended to back the budget monitoring report.
Local Government
Sewage leak at Pembroke Commons prompts urgent clean-up works
Council pollution officers say they have no enforcement powers over Welsh Water infrastructure
SEWAGE contamination on the Commons in Pembroke has prompted an urgent response from pollution officers, after a leak was reported by a member of the public on Tuesday.
Pembrokeshire County Council’s Pollution Control Team confirmed they were alerted yesterday afternoon to sewage surrounding a manhole cover on the site. The Herald understands that officers immediately notified Welsh Water (DCWW) network technicians to investigate the incident “as a matter of urgency”.
County councillor Jonathan Grimes, who represents Pembroke St Mary South and Monkton, said the authority had been clear that it holds no enforcement powers over Welsh Water assets.
“Whilst we work constructively with Welsh Water, we have no authority to intervene on their apparatus or to carry out enforcement action against them for such pollution incidents,” the Pollution Control Team said in a statement shared with the councillor.
Urgent works underway
Council officers visited the site on Wednesday morning alongside contractors and Welsh Water technicians to assess clean-up options. According to the team, works will include cleaning the contaminated ground in and around the manhole cover and fencing off the affected area “until safe”.
Cllr Grimes said officers would return to the scene on Thursday to check on progress and ensure the area is properly secured.
Residents who notice any further issues have been urged to contact the Pollution Control Team directly.
Further updates are expected later this week.
Local Government
Pembrokeshire Council faces backlash over £3.5m housing ‘buying spree’
Critics say policy inflates numbers while new-build programme stalls
PEMBROKESHIRE COUNTY COUNCIL is under growing pressure over its multi-million-pound programme of buying back former council houses, with critics warning that the strategy gives the illusion of progress while long-promised new-builds remain stuck on the drawing board.
The latest criticism comes from Milford Haven councillor Mike Stoddart, who has accused the authority of “standing still” by funnelling Housing Revenue Account (HRA) cash into purchasing properties that were once part of the council’s own stock.
Stoddart said the council’s approach “doesn’t increase the housing stock – it merely moves people from the private sector into the public sector”.
He added: “It would be much better if the money was spent on building anew.”
A temporary fix that became permanent
The buy-back scheme began in 2017 when the council adopted a new inflation-linked rent regime that delivered sizeable HRA surpluses. At the time, officers described buying ex-council homes on the open market as a “stop-gap” measure until the new-build programme ramped up.
But that programme has repeatedly faltered. Major schemes in Johnston and Tiers Cross have been hit by cost overruns of around 66%. In Milford Haven, new flats on Charles Street are costing close to £300,000 each for a one- or two-bed unit, before adding land costs, architects’ fees and planning expenses.

Stoddart said the pattern amounted to a “disaster”, arguing that buying existing homes had become the authority’s default option. “It gives the impression of making progress while actually standing still,” he said.
Brownfield sites left idle
In Stoddart’s own ward, three former school sites have stood empty since 2018. Their redevelopment is not expected to begin until 2027 or 2028. Meanwhile, the council’s purchasing programme has accelerated.
A Cabinet report for late 2025 shows more than £3.5 million spent on acquisitions in just the first half of the year.
The most striking deal was a bulk purchase of five homes in Harcourt Close, Hook, for £1.851 million — almost £400,000 each. Stoddart said the developer would think “all his birthdays have come at once”, with the council avoiding estate agents’ fees, reducing legal costs and allowing the seller to immediately stop paying interest to the bank.
Thirteen high-value purchases
All properties were bought for over £100,000 and moved into the council’s HRA stock:
| Address | Location | Price | Completion |
|---|---|---|---|
| 32 Southdown Close | Pembroke | £115,000 | 29/07/2025 |
| 8 Hyfrydle | Letterston | £115,000 | 01/08/2025 |
| 6 Precelly Place | Milford Haven | £120,000 | 22/09/2025 |
| 50 Heywood Court | Tenby | £125,000 | 02/10/2025 |
| 33 Croft Avenue | Hakin, Milford Haven | £130,000 | 20/10/2025 |
| 7 Hyfrydle | Letterston | £135,000 | 05/09/2025 |
| 18 St Clements Park | Freystrop | £140,000 | 14/07/2025 |
| 55 College Park | Neyland | £140,000 | 28/10/2025 |
| 26 Baring Gould Way | Haverfordwest | £146,000 | 15/08/2025 |
| 25 Station Road | Letterston | £170,000 | 10/10/2025 |
| 16 Woodlands Crescent | Milford Haven | £283,000 | 31/10/2025 |
| 26 & 27 Harcourt Close | Hook | £744,000 | 22/10/2025 |
| 23, 24 & 25 Harcourt Close | Hook | £1,107,000 | 30/07/2025 |
All purchases were made from HRA reserves with no borrowing, a point the council highlights as prudent financial management.
Fears over market distortion
Stoddart also warned that the authority’s deep pockets may be pricing out young families by outbidding first-time buyers for entry-level homes. “If classical economic theory is to be believed, it’s forcing up the price,” he said.
House prices in Pembrokeshire have risen around 15% in the past year, according to recent ONS data. Local estate agents, speaking anonymously, told this newspaper that council intervention “definitely nudges prices upward” in hotspots like Hook, Neyland and Milford Haven.
Council defends strategy
A council spokesperson said the approach was necessary to deliver homes “immediately” amid chronic shortages.
“Acquiring existing properties allows us to respond quickly to housing need,” they said. “New-builds remain a priority, but delays in planning, construction and funding mean we must use all available tools to meet demand. All purchases represent value for money and are compliant with our HRA strategy.”
Housing charity Shelter Cymru took a different view, arguing that “recycling stock is not a substitute for expansion”. The charity says Pembrokeshire needs around 500 new affordable homes a year to meet demand.
‘Residents deserve homes, not headaches’
Social housing waiting lists in Pembrokeshire now exceed 2,000 applicants. With another Cabinet briefing due later this month, Stoddart says he will push for a fundamental rethink.
“It’s time to stop standing still,” he told this newspaper. “Our residents deserve homes, not headaches.”
Business
Cwm Deri Vineyard Martletwy holiday lets plans deferred
CALLS to convert a former vineyard restaurant in rural Pembrokeshire which had been recommended for refusal has been given a breathing space by planners.
In an application recommended for refusal at the December meeting of Pembrokeshire County Council’s planning committee, Barry Cadogan sought permission for a farm diversification and expansion of an existing holiday operation through the conversion of the redundant former Cwm Deri vineyard production base and restaurant to three holiday lets at Oaklea, Martletwy.
It was recommended for refusal on the grounds of the open countryside location being contrary to planning policy and there was no evidence submitted that the application would not increase foul flows and that nutrient neutrality in the Pembrokeshire Marine SAC would be achieved within this catchment.
An officer report said that, while the scheme was suggested as a form of farm diversification, no detail had been provided in the form of a business case.
Speaking at the meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd, after the committee had enjoyed a seasonal break for mince pies, said of the recommendation for refusal: “I’m a bit grumpy over this one; the client has done everything right, he has talked with the authority and it’s not in retrospect but has had a negative report from your officers.”

He said the former Cwm Deri vineyard had been a very successful business, with a shop and a restaurant catering for ‘100 covers’ before it closed two three years ago when the original owner relocated to Carmarthenshire.
He said Mr Cadogan then bought the site, farming over 36 acres and running a small campsite of 20 spaces, but didn’t wish to run a café or a wine shop; arguing the “beautiful kitchen” and facilities would easily convert to holiday let use.
He said a “common sense approach” showed a septic tank that could cope with a restaurant of “100 covers” could cope with three holiday lets, describing the nitrates issue as “a red herring”.
He suggested a deferral for further information to be provided by the applicant, adding: “This is a big, missed opportunity if we just kick this out today, there’s a building sitting there not creating any jobs.”
On the ‘open countryside’ argument, he said that while many viewed Martletwy as “a little bit in the sticks” there was already permission for the campsite, and the restaurant, and the Bluestone holiday park and the Wild Lakes water park were roughly a mile or so away.
He said converting the former restaurant would “be an asset to bring it over to tourism,” adding: “We don’t all want to stay in Tenby or the Ty Hotel in Milford Haven.”
While Cllr Nick Neuman felt the nutrients issue could be overcome, Cllr Michael Williams warned the application was “clearly outside policy,” recommending it be refused.
A counter-proposal, by Cllr Tony Wilcox, called for a site visit before any decision was made, the application returning to a future committee; members voting seven to three in favour of that.
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