Politics

Short Circuit for Wales

Published

9 years ago

July 7, 2017

THE WELSH GOVERNMENT has been accused of misleading the public, ambushing investors, and using the Circuit of Wales project as a political football intended to shore up its vote in the South Wales Valleys after refusing to back the project last week.

NO TO GUARANTEE

The Welsh Government had been asked to provide a loan guarantee of £210m to private investor, the insurance giant Aviva. Had the Circuit gone bust, the Welsh Government would have been left liable for the loan balance but Aviva would have retained ownership of the Circuit.

Last week, Economy Secretary Ken Skates announced that the Welsh Government had decided against backing the project by providing a guarantee to key investor Aviva, claiming that late in the day the Welsh Government had received advice from HM Revenue and the Office of National Statistics that financing the deal would amount to state aid and affect Wales’ capital grant from the Westminster Government.

Mr Skates claimed that the presence of the Circuit of Wales on the books would have meant education and health services would have had their budgets squeezed.

However, Mr Skates’ version of events has been met with withering scorn from opposition parties who say that the Welsh Government’s version of events is disingenuous nonsense and that the Welsh Government has twice delayed pulling the plug on the project for Labour’s own electoral benefit .

INDEPENDENT INQUIRY CALL

Both the Conservative Party and Plaid Cymru have called for an independent inquiry into the Welsh Government’s conduct of the Circuit of Wales deal.

Andrew RT Davies, the Conservative leader in the Assembly said: “The Circuit of Wales has been a Welsh Labour car crash of epic proportions.

“After so many years of uncertainty and false hope, it’s clear that Welsh Government have plenty of questions to answer.

“Whilst I have had longstanding concerns that the Heads of the Valleys Development Company may not be right vehicle for this project, it is hugely disappointing to see it crumbling away in such dramatic and overnight fashion.”

Plaid Cymru Shadow Cabinet Secretary Adam Price claimed that evidence has come to light that the First Minister may have misled the public.

Adam Price said there was ‘compelling evidence the Welsh Government has been guilty of serial mendacity ‘.

“Sadly this project has been characterised by a series of inaccurate and misleading statements made by the Government, ostensibly to justify its own position in the face of potential criticism ,” he added.

“An email written by an Aviva senior director – dated 14th July last year – pointed to the false assertion by the Welsh Government ‘that we requested a 100% underwrite a few days before the rejection (of the first proposal in April 2016), when in fact this deal had been worked up with the Welsh Government (through civil servants) for many months and nothing in our funding structure changed in the run up to the announcement’.”

Mr Price continued: “I have an email from Welsh Government presenting a proposal based on a Welsh public sector guarantee of the debt dated January 26th 2016, confirming Aviva’s assertion. And yet speaking in Ebbw Vale on April 11th last year, as reported by the Western Mail, Carwyn Jones repeated the falsehood when speaking about the rejection of the proposal: ‘It was in the last few days beforehand. We weren’t to know the guarantee would be inflated’.

“These are not isolated instances. They are part of a pattern of duplicity that have characterised the Welsh Government’s approach to this project throughout, constantly shifting goalposts and covering their tracks.”

Mr Price called for an independent inquiry to investigate the matter: “Since the First Minister himself can now be shown also to have misled the public on the Circuit of Wales – all the more pointedly as it was in Blaenau Gwent and in the middle of a keenly fought election campaign – it’s no longer appropriate that he makes this decision as he will now need to be a subject of that investigation, not its judge and jury.

“As things currently stand no-one – business, media, Parliament or public – can be confident our Government is being straight with us. Only a full independent inquiry can begin to rebuild public trust. “

HAMILTON SLAMS GOVERNMENT INSULT

Neil Hamilton AM, UKIP Group Leader in the National Assembly for Wales stated in the Senedd chamber: “Are we really expected to believe, that the government accounting conventions about whether something should be classified as public expenditure or private by the ONS and the Treasury have come as a blinding revelation yesterday, and the cabinet was totally unaware of these conventions hitherto?

“It is an insult to the people of Blaenau Gwent that such a shoddy excuse has been used and a disgrace that so much public money and time was wasted on this decision.

“The Welsh Government now plans to build a £100m automotive business park in Ebbw Vale. What we have now is a proposal from the government to spend £100 m over ten years. Shedloads of money to build a series of empty sheds,” continued Mr Hamilton

“Interestingly the Welsh Government announced this decision after the election; a decision beforehand would clearly have damaged Labour in the polls. What a cynical political decision, a terrible betrayal of the people of Blaenau Gwent and a shoddy excuse for what amounts to the replacement of the Circuit of Wales with a Scalextric set.”

Appearing before the Public Accounts Committee the day before the Welsh Government pulled the plug, a senior Welsh Government civil servant, James Price, told Committee members that he regarded the £9.3m as a fair price to pay for the due diligence that it had enabled the Welsh Government to undertake and suggested that the Auditor was wrong to decide that business risk assessments carried out before providing the money were deficient.

One thing that emerged from that Committee meeting was the broad agreement that due diligence had to take place before the Welsh Government exposed itself to further risk. It was surprising, therefore, that the following day in the Assembly one of those members who had been singing the praises of due diligence taking place committed a complete about face.

Deriding the Welsh Government’s involvement as being an exemplar of ‘the dead hand of government’, UKIP’s leader in the Assembly Neil Hamilton appeared to have forgotten his words of little over twenty four hours earlier: ‘Personally, I think it was a very reasonable punt you took (with the grant and loan). Now we’re talking about much, much larger sums of money, it’s right that a considerably greater degree of examination be undertaken’.

COMPANY DENIES GOVERNMENT CLAIMS

A spokesperson for the Heads of the Valleys Development Corporation (HVDC), the company behind the Circuit of Wales, said: “Along with my team and commercial partners, I am hugely disappointed and saddened that the Welsh Government has failed to support The Circuit of Wales, what would be a game changing development for Wales and in particular the people of Blaenau Gwent.

“We strongly disagree with the decision and the rationale behind it.

“We have always believed passionately, and continue to do so, in this project’s ability to transform and provide opportunities and hope to one of the poorest parts of the UK, not just Wales. The project is totally defined, finance is in place, and construction and hiring could start immediately.

“My team and I will now analyse the Welsh Government’s reasons not to support the development and are actively seeking additional clarification from them. We will then very shortly issue a detailed response before deciding on our next course of action.”

That detailed response, when it arrived, savaged the Welsh Government’s reasoning and claimed that the reasons given to the Senedd for refusing to back the deal were either wrong, specious, or had not been raised with the developer or its investors. In addition, the statement revealed that the Economy Secretary had not met with representatives of the company for over twelve months before making his decision.

A spokesperson for HVDC said: “ This is a real loss for the people of Ebbw Vale, the immediate community and a missed opportunity for Wales as a whole. This is a project that has been totally defined; it is fully financed (with finance in place) with construction and hiring ready to start immediately.

“At a time when the Welsh Government is trying to demonstrate that Wales is ‘ppen for business’, the rejection of this significant infrastructure project will do little to breed confidence within the private sector for future investment in the country.”

Most tellingly, perhaps, HVDC made a concerted attack on the Cabinet Secretary’s assertion there was a very significant risk that the full £373million debt of the entire Circuit of Wales project would be classified against Welsh Government capital spending.

The statement from the Company expressed amazement at the lack of notice given to it that any problem had arisen: ‘The company was never informed or made aware of this ONS and HM Treasury advice during the due diligence process. We were promised by Welsh Government officials that we would be consulted if any significant issues arose during due diligence and given an opportunity to respond.

‘We were not notified that this was a serious roadblock prior to Tuesday’s meeting and never given a chance to respond.

‘The Welsh Government has known about the latest structure of this project since well before February 2017 and could easily have obtained clearer guidance from Treasury and ONS prior to Tuesday’s meeting and informed us’.

The spokesperson continued: “We believe it is important for the people of Blaenau Gwent to have the details of these discussions with ONS and HM Treasury disclosed to the public. What were these discussions, who were they with and when were they undertaken?

“ We wholeheartedly disagree that the support for The Circuit of Wales would be on balance sheet and would require the Welsh government to limit its budget and compromise the building of schools and hospitals .”

The company also claimed that the £100m technology park – funded by public money – announced by Ken Skates as a sop to Blaenau Gwent was scheduled to cost £150m of wholly private money and be delivered in two years: not the ten announced by the Cabinet Secretary in the Senedd.

SCHEME UNDER SCRUTINY

However, the scheme has been the subject of scepticism for some time.

A BBC investigation for soon to be scrapped current affairs programme Week In Week Out, cast doubts on whether or not the company could achieve anything like the promises it had made either in terms of regeneration of Blaenau Gwent or in relation to delivering on its promises regarding the proposed facilities within the time and budget specified. Moreover, the same documentary revealed that £35,000 from HVDC – a company partly funded by the Welsh Government – had been used on landscape gardening on the home of the person fronting the scheme, Michael Carrick.

An investigation by the Auditor-General for Wales criticised the Welsh Government both for a loan guarantee a £7.3m provided to HVDC and a £2m grant provided as seed money. The Auditor discovered that part of the money had been used to acquire a small motorcycle manufacturing business in England and ruled that there had been insufficient regard as to whether the uses to which public money were being put were delivering value for money for the public.

Initial claims that 6,000 jobs would be created and claims of businesses flocking to set up working partnerships on the Circuit of Wales site had also come under scrutiny.

A reassessment of the project carried out by the University of South Wales as part of the due diligence process suggested that 2,000 jobs fewer than claimed would be created. In addition, jobs during the construction phase of the project would be temporary, with the Circuit ultimately employing around 150 full time staff, while the remainder of jobs would be created in spin-off enterprises over a longer period of time.

As this article was being prepared for publication, Michael Carrick, told BBC News: “We haven’t given up on it and I’m hoping government hasn’t.

“The project is too important to walk away. We’ve got the support of our investors, we’ve got the support of our development partners and we want to make it work for government and for the valleys.”

Whether Mr Carrick will be able to overcome the deep reservations of the Welsh Government and proceed with the scheme with their backing is open to question.

Whether the HVDC will be able to develop the Circuit of Wales on the scale planned – or at all – without that backing, is highly unlikely.

Health

NHS pay row erupts as ministers confirm 3.3% rise

Published

3 minutes ago

February 15, 2026

Tom Sinclair

Unions warn award amounts to real-terms cut as inflation remains above headline figure

NHS staff across Wales will receive a 3.3% consolidated pay increase from April 1, 2026, after the Welsh Government accepted recommendations from the 39th NHS Pay Review Body.

The uplift applies to all staff employed under Agenda for Change terms and conditions, including nurses, healthcare assistants, porters, cleaners and other frontline health workers.

Health and Social Care Secretary Jeremy Miles said the award followed independent economic advice and was above current inflation forecasts issued by the Bank of England and the Office for Budget Responsibility.

He said inflation was expected to fall progressively towards the two percent target by early 2027 and described the settlement as fair and responsible within the current financial climate.

Lowest-paid staff

The Welsh Government confirmed that its commitment to pay the Real Living Wage from April 2026 means the lowest-paid NHS staff will see increases ranging from 3.8% to 5.9%.

However, it was also noted that Bands 1 and 2 and the entry point of Band 3 will remain on the same pay rate from April because the previously announced living wage uplift already exceeds the Pay Review Body recommendation.

Ministers said discussions will continue alongside England and Northern Ireland on structural reforms to the Agenda for Change framework, with any agreed changes backdated to April 2026.

Union anger

The announcement prompted sharp criticism from health unions, who argue that with inflation currently at 4.2%, many staff will still see a reduction in real-terms pay.

The Royal College of Nursing described the award as “very disappointing” and said it falls short of commitments to restore nursing pay to 2008 levels.

RCN Wales Executive Director Helen Whyley said: “At a time when the cost of living remains high another real term pay cut is being imposed again on a workforce already stretched to its limits.”

She also criticised the continued use of the Pay Review Body process after unions had raised expectations of direct negotiations.

Meanwhile, UNISON Cymru said health workers are likely to be angry at what it called “another below inflation pay award”.

UNISON Cymru health committee chair Dawn Ward said some NHS staff were struggling with rising household bills and felt undervalued.

The union has called for Wales to move towards a Scottish-style model of direct pay negotiations between government, employers and unions.

Political pressure

The pay announcement is likely to intensify debate about NHS funding, recruitment and retention across Wales.

While ministers argue the settlement reflects economic forecasts and financial constraints, unions maintain that headline percentages do not reflect the pressures facing frontline staff.

With morale described as fragile and vacancies continuing across Welsh health boards, the dispute is expected to remain politically sensitive in the months ahead.

Business

Haverfordwest Kings Arms pub basement flat scheme refused

Published

8 hours ago

February 14, 2026

Bruce Sinclair - Local Democracy Reporter

A SCHEME to convert the basement of a Grade-II-listed former pub in a Pembrokeshire town’s conservation area to a flat has been refused by planners who said it would create an “oppressive living environment”.

In the application to Pembrokeshire County Council, Toyeb Ali Rahman, through agent Hayston Developments & Planning Ltd, sought permission to convert the basement of the former Kings Arms Hotel, Dew Street, Haverfordwest, the building most recently used as an Indian takeaway, to a residential flat.

A supporting statement said: “The Kings Arms Public House was a public house and was formerly a coaching house with a range of former stables to the rear which have been converted to dwellings. It is a mid-terrace property fronting the western side of Dew Street close to the town centre of Haverfordwest,” adding: “Since closure the public house has been used as a takeaway restaurant and is a mixture of flats and offices.”

It went on to say: “The application proposal only involves a small-scale conversion of a basement storage area associated with the former Kings Arms Hotel to a one bedroom residential flat. There would be no extensions with the only external alteration to the building being the replacement of a poorly detailed metal roller shutter door with conventional domestic entrance door with sidelight.

“As such, there would be no change to the impact of the building or proposal on the locality. In fact, basement area is not at all visible from the street scene along Dew Street.”

However, the scheme was refused by county planners on three points.

“The proposed change of use would result in a self-contained residential unit that fails to provide an acceptable standard of residential amenity for future occupiers. The habitable accommodation would be served by no external windows, resulting in inadequate levels of natural daylight and outlook and creating a poor-quality and oppressive living environment.

“Furthermore, insufficient information has been submitted to demonstrate that adequate ventilation, air quality, and moisture control could be achieved without harm to the character and appearance of the listed building.”

Planners also said the proposals would, through its design and use of materials, “fail to respect the special architectural and historic interest of the listed building”.

The final reason for refusal was the scheme would “result in an increase in nitrogen discharges draining into the Milford Haven Inner waterbody of the Pembrokeshire Marine Special Area of Conservation (SAC) where features are known to be in unfavourable condition due to current evidence of both chemical and biological failure,” with insufficient information to demonstrate mitigation measures which would allow the proposed development to achieve nutrient neutrality.

News

New Welsh Government plastic bans held up by internal market talks

Published

20 hours ago

February 14, 2026

Tom Sinclair

Cardiff under pressure from industry and environmental groups as new restrictions loom

THE WELSH GOVERNMENT has confirmed that further bans on single-use plastic products will not be enacted before the end of the current Senedd term — but reiterated its commitment to phasing out what it calls “unnecessary” plastics to protect the environment.

In a written statement on Wednesday (Feb 11), Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs Huw Irranca-Davies said planned “Phase 2” restrictions under the Environmental Protection (Single-use Plastic Products) (Wales) Act 2023 will be delayed as officials work with UK governments to secure an exemption from the United Kingdom Internal Market Act 2020 (UKIMA).

Phase 1 of the act, which came into force in October 2023, already bans a range of commonly littered items such as plastic cutlery, drinks stirrers, polystyrene cups and takeaway containers.

Under Phase 2, ministers had intended to restrict polystyrene lids, single-use plastic carrier bags and products made of oxo-degradable plastic by spring 2026 — but Mr Irranca-Davies said that timetable is no longer feasible this term due to the ongoing negotiations over internal market arrangements.

“We are committed to seeing polystyrene lids … plastic single-use carrier bags or products made of oxo-degradable plastic banned and are working to achieve that as soon as possible,” he said in the statement.

Environmental groups and campaigners have welcomed the Government’s overall ambition but stressed the urgency of moving from pledges to action.

A spokesperson for Keep Wales Tidy said the original legislation was a crucial step in tackling plastic waste, noting that plastics remain one of the most common forms of litter found on beaches and in waterways. “This move shows intent, but communities are looking for swift implementation,” the group added in a recent comment on social media about Wales’s ongoing efforts to reduce single-use plastics.

Wales was one of the first parts of the UK to target carrier bags, introducing a 5p charge for single-use plastic bags in 2011, which saw usage drop dramatically — by over 90 per cent according to government data.

Critics from parts of the business community, including hospitality and retail sectors, have previously expressed concerns over the practical impacts of rapidly changing plastic regulations, particularly where alternatives are not readily available or where internal market uncertainties create compliance challenges for firms operating across the UK.

Mr Irranca-Davies said the Welsh Government remains committed to the wider goals of its Beyond Recycling circular economy strategy — including a **zero-waste **ambition by 2050 — and to ending what he described as a “throw-away culture” that harms the environment and future generations.

He also highlighted progress already made: Wales now ranks among the world’s highest for household recycling rates, a significant rise from less than five per cent at the point of devolution.

The Government says wet wipes containing plastic will be restricted from 18 December 2026 and that it will continue working with UK partners to resolve internal market issues and push remaining bans forward.