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More cuts could have devastating impact, Sport Wales warns

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SPORTS WALES warned any further cuts to its budget by the Welsh Government next year would have a potentially devastating impact.

Brian Davies, chief executive of Sport Wales, and Tanni Grey-Thompson, its chair, gave evidence to a Senedd inquiry about the impact of culture funding cuts on October 9.

Delyth Jewell, who chairs the culture committee, asked what would happen if cuts to Sports Wales’ budget were repeated in next year’s budget which will be published on December 10.

“It would be a big problem,” Mr Davies replied, saying Sport Wales was fortunate this year to be able to absorb the 10.5% cut from the Welsh Government.

He said further reductions would pose an “existential” challenge for smaller governing bodies that are funded by Sport Wales, which is responsible for developing and promoting sport.

Mr Davies suggested this year’s cut has impacted participation and equality, adding that Sport Wales has tried to minimise this by only passing on a 3.5% cut to partners.

He told the committee: “Cutting sport, which is a fantastic tool for the preventive health agenda, is a false economy … for every £1 of public money spent on sport and physical activity, there’s a £4.44 return in terms of social investment for Wales.”

Sport Wales’ written evidence said the £2.5m cut to its budget in 2024/25 is estimated to have led to a loss of £11.1m in terms of social return on investment.

Baroness Grey-Thompson said: “We might not see the impact of it for a couple of years actually … but there will be an impact in terms of what people are able to deliver.”

Pressed by Labour’s Lee Waters about suggestions of an “instinct to protect elite sport first”, Mr Davies said: “No, I don’t think that’s fair – in fact I know that’s not correct.

“Governing bodies, in the main … have such a broad range of responsibilities for their sport in the sector – elite sport is only one. There’s an awful lot that goes on.” 

Baroness Grey-Thompson added that Sport Wales has moved away from demanding medal targets because it drives a culture that impacts grassroots sport.

The Paralympian said: “Partners understand that if you don’t develop that broad base, you’re not going to get the medallists.”

She stressed the importance of physical activity, calling for a focus on young people and “harder-to-reach, easier-to-ignore” groups to develop good patterns of behaviour.

Mr Davies agreed about the importance of prevention as he cautioned that Sport Wales is not as entwined as it should be with health and education.

Quizzed about the impact of council cuts, such as to leisure centres, Mr Davies said facilities are a critical issue as he pointed to a Sport Wales energy grant scheme.

He agreed about the role schools could play in opening up their facilities out of hours, particularly in rural Wales, but he warned Sport Wales has “hit a bit of a brick wall”.

Asked about accessing funding from trusts or foundations, Mr Davies said income generated by Sport Wales could be clawed back by the Welsh Government under its remit letter.

He told committee members: “It is an interesting area that we haven’t progressed and I don’t think any other sports council has either.”

Baroness Grey-Thompson said sponsorship for governing bodies is “considerably lower than you might imagine”, with a drop off after the 2012 Olympics and Paralympics.

Mr Waters raised concerns that standalone Welsh bodies may find it increasingly hard to sustain operations, with some potentially reverting to GB or England and Wales bodies.

Pressed about the Welsh Rugby Union, Mr Davies welcomed progress on governance, saying Sport Wales has reinstated funding that was withdrawn two years ago.

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The results are in: Nick Neumann is Pembrokeshire’s newest councillor

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AFTER a tense period of campaigning, Conservative candidate Nick Neumann has won with 365 votes.

His controversial rival, Mike Harris, only received 43 votes, alongside Jony Griff with 201 votes and Thomas Hughes with 135 votes. 

Speaking to The Herald after the result was announced by the Returning Officer on Thursday (Oct 10), the now councillor Neumann said: “Firstly to thank the campaign team for their support led by Di Clements and good friend Mark Carter.

He added: “It makes a huge difference being part of a group in terms of campaign support. And thank you to all the good people of the Havens and Roch who have entrusted me to represent them at county hall.”

Cllr Neumman also said he wished to thank the Returning Officer and the County Council’s counting staff for running the count so smoothly.

Cllr Nick Neumann, and his wife Jessica run Newgale Holidays. They are a well-known couple in the local area.

Neumann’s has a degree in agriculture and business. His business, Pembrokeshire Agrisolutions, launched in 2000, and is directly helping local farming communities.

Nowadays, latest business venture, Newgale Holidays, is continuing to grow with a newly approved holiday lodge development on the site of the former Roch Gate Hotel. 

Now Pembrokeshire’s newest county councillor, the voters of The Havens will be looking forward to Neumann to delivering for their communities. 

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Politics

Welsh ministers ‘creating crisis protocol’ for cash-strapped councils

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THE WELSH Government is developing a protocol in case cash-strapped councils in Wales face financial emergencies such as bankruptcy, a committee heard.

Jayne Bryant, who was appointed local government secretary over the summer, said: “I’ve met with local authority leaders already … and it’s clear to me the severity of the situation.”

She pointed to pressures including years of austerity, the pandemic, inflation and rising demand as she appeared before the Senedd’s local government committee on October 10.

Pressed about financial resilience, Ms Bryant said: “We’re jointly developing, with local authorities, a protocol to apply in case of significant financial challenge.”

Last year, a report warned Welsh councils could face a funding gap of £744m by 2027/28.

Ms Bryant told the committee: “Services have had to be changed, some have faced reductions and councils have had to prioritise. Elected members and officers have been under a significant amount of pressure for a long time.”

Referring to Audit Wales reports on council finances, the Conservatives’ Altaf Hussain warned some face fundamental issues that put their financial sustainability at serious risk.

Ms Bryant replied to Dr Hussain: “If necessary, I do have powers of intervention but of course that would be a step I would not take lightly.”

She said the Welsh Government will have greater clarity after the UK budget on October 30.

The Welsh Government’s draft budget for the 12 months from April will be published on December 10, with the provisional local government settlement set to follow soon after.

Judith Cole, deputy director for local government finance, said if a council faced a section 114 (bankruptcy) notice, it could seek assistance from the Welsh Government.

But she cautioned: “The moral hazard means that we would not be suggesting to the cabinet secretary that she opens up the bank because we haven’t got any.”

She added that councils could use an improvement fund given to the WLGA before getting to the stage of a section 114 notice.

She said: “There is nobody who has formally come to us and said ‘we need help’ at this point, what we are conscious of is the sector as a whole is saying it’s really difficult.”

Ms Cole told the committee the protocol aims to ensure a “no-surprises” approach.

Reg Kilpatrick, director of local government, said the Welsh Government has an “open and frank” dialogue with councils about finances throughout the year.

He recognised “concerning messages” coming out of Audit Wales reports.

Asked about council reserves, and the important distinction between usable and allocated reserves, he said the Welsh Government collects data but has no role in managing reserves.

Mr Kilpatrick cautioned it will “be a while” before the Welsh Government can provide any indicative allocations to councils for next year.

The Conservatives’ James Evans asked about the formula used to allocate council funding, joking that only about four people in Wales understand it.

Ms Bryant said the complicated formula includes more than 4,000 data points and the Welsh Government is reviewing the biggest areas such as social care and education.

Plaid Cymru’s Siân Gwenllian criticised a u-turn on setting up a commission on community assets, “which suggests, perhaps, this isn’t going to receive the specific attention it needs”.

Ms Bryant said the Welsh Government has set up a task and finish group rather than a commission, which reflects financial constraints.

Labour’s Lee Waters raised an Audit Wales report, which found half of councils do not have a digital strategy, as he expressed concern about a “pedestrian” pace of change.

Mr Kilpatrick said the Welsh Government has put more than £7m into supporting the local government chief digital officer’s team, with a £1.3m annual grant.

Mr Waters suggested spending on digital is relatively small in the context of council budgets, warning: “This really isn’t anywhere near the top of the agenda.”

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Heritage body ‘working to the bone’ as workforce nearly halves over past decade

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A HERITAGE body warned its workforce has almost halved over the past decade due to cuts, with some staff now “doubling up” and doing two jobs.

Christopher Catling, chief executive of the Royal Commission on the Ancient and Historical Monuments of Wales, gave evidence to the Senedd’s culture committee on October 9.

Mr Catling, who came into post nearly a decade ago in 2015, explained that the commission operates under a Royal Warrant to maintain an inventory of monuments in Wales.

He cautioned that the commission’s remit letter and key-performance indicators from the Welsh Government “don’t really address that core warrant duty”.

Mr Catling warned of an assumption that worthy social objectives can be delivered as a by-product, saying the commission has sought external funding for this purpose.

He said: “The social objectives are not funded by [the] Welsh Government to the same degree – quite honestly, our funding … pays for the salaries of our staff, it leaves very [little].”

Hayley Roberts, an international lawyer who is deputy chair of the Royal Commission, which received a 10.5% cut in 2024/25, agreed the situation has worsened in the past decade.

Dr Roberts pointed to the commission’s written evidence, which warned of a near 50% reduction in staff over 10 years causing substantial reductions in service delivery.

“We can’t do more with fewer staff and we can’t do the same things with less.” she said.

Mr Catling added that the commission’s costs have been rising at an “astonishing” rate, with  fees for required cyber security certification jumping from £700 to £10,000.

He told the committee: “The way we’ve coped, I’m afraid, is simply by freezing posts as people have left the commission. We have not replaced them unless their role is so absolutely fundamental to our delivery that we have to.”

Mr Catling added: “A number of our staff are now doubling up and doing two jobs.

“Our governance manager is now our HR manager even though she has none of the qualifications or skills to do that job.

“Our procurement and operations manager is doubling up as our finance manager.”

Asked about charging for pre-planning advice, Mr Catling suggested this would not be viable because the level of income raised would not pay for staff nor sustain the commission.

Looking to the future, he said: “It will mean change and it will mean probably doing less than we currently do but doing it differently.”

Mr Catling raised the example of the commission having one-and-a-half people to record buildings being demolished, with Wales set to lose 500 places of worship in the next decade.

Asked about cooperating with Cadw, he told the committee: “We have been continually asked to look at efficiency savings, particularly combining back-office functions.

“We have worked really hard at that and we’ve never identified a single saving. Our organisations – all of us – are working to the bone.”

Lee Waters said he struggled, from a common sense point of view, to understand that there are no savings to be made across heritage organisations.

“It’s a hard argument to sustain,” said the Labour MS for Llanelli.

Mr Catling reiterated that efficiency savings have been exhausted, suggesting the commission is unlikely to be able to share functions with Cadw following a review.

The chief executive hit back at Mr Waters’ line of questioning, asking: “Who would you suggest we talk to? Come on, be specific.”

Mr Waters replied: “I beg your pardon. OK, maybe we need to calm down a little…. You’re special pleading the whole time.

“I don’t doubt you’re very efficient and you’re doing a tough job with limited resources – that’s frustrating, I completely understand that and I’m not questioning the value of your work.

“I’m simply challenging some of your evidence that there aren’t functions you could share.”

Asked about an extra £90,000 announced by the Welsh Government, Mr Catling said six staff have been hired for six months to work on vital projects.

He shared previous witnesses’ concerns that in-year funding is a sticking-plaster solution.

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