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Politics

Duty First Minister ‘optimistic’ Wales will retain water pollution revenue

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THE DUPUTY First Minister told the Senedd he is optimistic that revenue generated by UK-led reforms to water pollution regulations will stay in Wales.

Huw Irranca-Davies, who is also climate change secretary, appeared before a Senedd committee for scrutiny on Westminster’s water (special measures) bill on October 16.

Pressed by the Conservatives’ Janet Finch-Saunders about funds from pollution fines going to the UK Treasury, he said the Welsh Government wants revenue to stay in Wales.

Mr Irranca-Davies told the committee: “That’s the nature of the engagement we currently have with the UK Government. It’s probably fair to say those discussions are going well.”

Plaid Cymru’s Delyth Jewell raised Natural Resources Wales’ evidence on cost recovery, saying fines resulting from prosecution would return to the UK Treasury.

“We’re very cognisant of that …,” the minister replied. “We’re in discussions with the UK Government on exactly that point – making sure the funds … would actually be returned.”

He was optimistic as he pointed to progress on clawing back other funds under the bill.

Llŷr Gruffydd, who chairs the climate change committee, asked whether the bill is in line with Welsh Government policies.

Mr Irranca-Davies said the bill is aligned and builds on progress, providing an opportunity to collaborate on a UK basis as rivers “don’t respect national boundaries”.

He recognised the need to make sure the measures fit Welsh Water’s not-for-profit model.

Calling for automatic penalties, Ms Finch-Saunders warned it takes “so long” to get Welsh Water and NRW to respond to pollution incidents.

The Tory asked: “Do you actually believe we’ve got the right enforcement procedure?”

Mr Irranca-Davies said Welsh ministers fully support proposals for automatic penalties for certain offences which will be set out in secondary legislation in the Senedd.

Julie Morgan asked about civil sanctions for water industry offences.

Mr Irranca-Davies told the Labour backbencher the bill would modify the required standard of proof from beyond reasonable doubt to the balance of probabilities.

John Griffiths, also a Labour Senedd member, asked why Wales would not be included in a legal requirement for pollution incident reduction plans to hold the industry to account.

He pointed out that Welsh Water has been categorised as “lagging” on water pollution.

Mr Irranca-Davies said: “On reflection, we’ve come to a different conclusion on this,” so ministers will be seeking an amendment to the bill to extend the requirement to Wales.

The Senedd will vote on consent for the bill because elements fall within devolved powers.

Farming

Calls for pause on council farm sales dismissed

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THE SENEDD narrowly rejected calls to temporarily halt the sale of council-owned farms amid concerns they are disappearing at an alarming rate due to financial constraints.

James Evans led the debate calling on the Welsh Government to impose a Wales-wide temporary ban on the sale of council-owned farms.

He said: “These farms are not just pieces of land, they’re the lifeblood of rural communities. For generations, they have provided opportunities for our young farmers….

“But now, these farms are being sold off at an alarming rate. And the consequences can be devastating, not just for farming, but the way of life in our rural countryside.”

The Conservative said council-owned farms offer young people who are “locked out” of the agricultural sector a chance to get on the farming ladder through affordable tenancies.

“Without them, we risk shutting the door on the next generation,” he warned.

Mr Evans pointed to 2023 statistics showing there are 972 council-owned farms, covering 21,000 hectares – “a huge proportion of our farms across Wales”.

Calling for a moratorium, the shadow rural affairs secretary said: “We need to pause. We need to take a breath and fully assess the long-term impacts of these sales.

“It’s about giving ourselves time to develop a proper, sustainable strategy for the future of farming in Wales.”

Mr Evans, who represents Brecon and Radnorshire, said many of the farms are in Welsh-speaking communities as he raised concerns about risks to the language.

He told the Senedd: “I urge this Welsh Government to act with urgency. We cannot sit back and watch as our council farms disappear one by one.”

Backing the motion, his Plaid Cymru counterpart Llŷr Gruffydd said all parties need to hold their hands up about the issue becoming a “political football”.

He said: “The biggest irony, maybe, is that much of this is being driven as a result of Conservative-led austerity, which has put – [interruption] no, no, no – that’s the irony of the situation but I will desist from making that point.

“Look, they have been left with no other option, many of these councils.”

Mr Gruffydd, who has been calling for a national summit on the future of council farms since 2016, urged the Welsh Government to grasp the nettle.

He said: “Ultimately, yes, the responsibility rests with local authorities but the government can’t wash its hands of the problem.

“These farms are a national asset and there’s a pressing need for leadership.”

Responding to the debate on October 16, Huw Irranca-Davies said council farms are important assets offering an invaluable route into agriculture for young people.

Wales’ rural affairs secretary told the Senedd the 2023 Agriculture Act does not give ministers powers of control over councils to sell land.

Mr Irranca-Davies, who is also deputy first minister in the Welsh Government, said: “The sale of land and decisions about how they approach it is for local authorities.”

He added: “We do not have a statutory basis to intervene in the sell-off of land, so the call for a moratorium is misplaced.”

Senedd members voted 25-22 against the Conservative motion. The motion as amended by the Welsh Government was agreed 25-13 with nine abstaining.

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Climate

Ministers set to ‘accelerate’ planning decisions in clean energy push

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WALES’ economy secretary vowed to make speeding up planning decisions a top priority as part of a push towards clean energy.

Rebecca Evans committed to a sector deal with Wales’ renewable energy industry, which she said will include action to accelerate planning decisions and provide greater clarity.

Ms Evans warned council planning departments were “stripped back” due to austerity as she provided an update on the green economy to the Senedd on October 15.

She said: “For their part, I expect the sector to support our ambitions for local ownership and the development of skills and investment in our communities, including the environment.”

The economy secretary said the UK Government’s industrial strategy, unveiled on Monday, identified the role of green industries in driving economic growth.

Ms Evans also pointed to a Welsh Government consultation on implementing reforms aimed at streamlining the consenting process for major infrastructure projects.

She argued Wales is leading the way in establishing public energy companies, pointing to Trydan Gwyrdd Cymru and Ynni Cymru, which will develop projects and retain income.

The minister told the debating chamber that Wales has an onshore development pipeline of more than 5GW, and a further 18GW through fixed and floating offshore wind.

Ms Evans added that the Welsh Government will hold a consultation on carbon capture and storage technologies as well as hydrogen in the coming weeks.

She said: “Wales has its place in history using our natural resources to power the industrial revolution but we enter a new era where the power we need across our economy and wider society supports a new industrial transformation for our economy and our communities.”

Samuel Kurtz warned Wales is far from unlocking its potential for renewable energy.

The Conservatives’ shadow economy secretary said investors and developers are being held back by countless planning barriers.

He told the Senedd: “It is vital that these obstacles, like delays in consenting, planning, grid-capacity issues, skills shortages and supply-chain readiness are addressed swiftly.”

Ms Evans recognised grid infrastructure constraints, saying the first minister has made the case and the UK Government “absolutely does get that”.

Mr Kurtz also raised concerns about a skills shortage and urged the Welsh Government to “tear down” barriers for small businesses in the supply chain.

His Conservative colleague Paul Davies called on ministers to prioritise investment that leverage private sector funding to make Wales a global leader.

Luke Fletcher, Plaid Cymru’s shadow economy secretary, warned of history repeating itself.

“Wales is, once again, being cast in the role of resource provider,” he said.

“Wind, wave, land and sea bed are exploited while the financial gains and innovation returns are largely captured by external actors.”

Calling for more powers, Mr Fletcher pointed out that larger renewable energy projects that exceed 350MW remain outside of Welsh control.

He said the UK Government has roundly rejected calls to devolve the Crown Estate despite Welsh Labour’s support and powers already being given to Scotland.

Plaid Cymru leader Rhun ap Iorwerth expressed concerns about plans for solar farms in his Ynys Mon constituency covering thousands of acres of good agricultural land.

His predecessor Adam Price accused the UK Government of creating a narrative that projects must be large scale, swift and low cost regardless of other considerations.

Similarly, Jane Dodds, for the Liberal Democrats, called for investment in cable ploughing to avoid the use of pylons snaking through the countryside.

And Carolyn Thomas raised concerns about fossil fuel companies “greenwashing” as she criticised plans for a “massive” carbon dioxide pipeline from north Wales to Liverpool.

Alun Davies, a fellow Labour backbencher, warned it will be difficult for the Welsh Government to achieve any of its ambitions without devolution of the Crown Estate.

Calling for equitable treatment, he suggested some parts of Wales, such as his Blaenau Gwent constituency, have shouldered more responsibility for clean energy than others.

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News

Council votes to cut Council Tax for second home owners

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PEMBROKESHIRE COUNTY COUNCIL has voted to reduce the Second Home Council Tax premium from 200% to 150%, following a close decision on Thursday, October 17.

The change, set to take effect from next April, comes after a Conservative motion to cut the premium in half was decisively defeated. Currently, second homeowners pay three times the standard rate, with a Band E property’s tax rising to around £7,000 annually, compared to £2,300 for local residents.

The reduction was achieved through an Independent Plus Group (IPG) amendment, which passed by a narrow margin.

SERVICE CUTS OR TAX HIKES FOR LOCALS

Whatever the reasoning behind the Conservative amendment, the debate centred on potential future Council Tax rises and deeper service cuts.

Cllr Jordan Ryan was surely correct when he said that those who supported halving the Second Homes Premium were also those most unlikely to support increasing Council Tax to make up the money lost from the Council Budget in 2025/26.

Cllr Di Clements, Conservative Group Leader, proposed halving the Premium, arguing that the current level risked harming tourism in Pembrokeshire. She said it was important to be honest about how the Council used the money the Premium raised. The original intention of the Second Home Premium was to fund affordable housing. However, it was now being used to buttress the shortfall in the Council’s Budget.

She said she had to wonder about the local authority’s financial stability if it was so dependent on the Premium.

Cllr Clement claimed the Council’s message to second-home and holiday accommodation owners is clear: “We don’t want you.”

Cllr John Cole, who supported Cllr Clement, said the Cabinet member for Finance, Cllr Joshua Beynon, had dismissed second-home owners’ representations about the Premium’s impact.

Cllr Beynon responded briskly to Cllr Cole’s suggestion. He reminded the Merlin’s Bridge councillor that part of the purpose of setting a budget was to weigh evidence and reach a conclusion. On balance, the need to reduce the size of any future Council Tax rise on local residents and preserve essential services outweighed second-home owners’ interests.

He reminded Cllr Clements that the decision to use the money raised from the Premium for general funding was made by the Full Council, not the Cabinet. Cllr Beynon said the issue would be debated during next year’s budget setting.

DIVIDING THE PIE

Cllr Mark Carter raised the issue of how the Coucil Tax Premium operated. Not only the County Council precept trebled, but also the precepts for community councils and policing. He found it hard to justify that the policing precept raised in Pembrokeshire was funding policing elsewhere.

Cllr Beynon replied that he would examine the issue raised and report back. However, he added, he could not tell Dyfed Powys Police where to spend its money.

Former Cabinet Member for Finance Cllr Alec Cormack boiled the debate down to brass tacks and asked the Director of Resources to outline the effects of supporting the Conservative motion.

Jon Haswell replied that each 25% cut to the Premium would reduce the Council’s revenue by £1.3m.

In the context of the Conservative motion, that would lead to an additional £5.2m pressure on the Council’s Budget in addition to the existing £32.8m pressure.

That meant that, even if the Council used £3m of its reserves, in addition to deeper cuts to services, the Council would need to increase Council Tax for 2025/26 by 18.87%.

Cllr Cormack observed that councillors ignored Mr Haswell’s warnings last year, and as a result, they faced even tougher choices next year.

Without making deep cuts, the Budget won’t balance, he added.

Alec Cormack said: “If we cut the Premium today, we are voting for a bigger increase in Council Tax in February.”

RESIDENTS SHOULDN’T BANKROLL SECOND-HOME OWNERS

Cllr Alistair Cameron agreed with reducing the Second Homes Premium but said the Council could not afford to do so because of grave budgetary pressures.

“We are having this difficulty because we are trying to pay for care, provide homes, and care for vulnerable children. We cannot afford to make next year’s Budget any harder than it should be.

Alan Dennison said he did not want his voters in Milford Haven to subsidise second-home owners but wanted to find a middle ground.

Cllr Beynon said that if the Conservative amendment passed, schools’ budgets would suffer a 4% cut next year.

Aled Thomas supported Di Clements. He said that suggesting that the only way to balance the Budget was to increase Council Tax was fundamentally flawed.

Cllr Thomas claimed the administration had sown a seed of division between the Pembrokeshire people, the tourism industry, and second-home owners.

He claimed councillors were being gaslit on the Council’s budgetary pressures.

Cllr Tony Wilcox said that councillors should not pander to a minority interest. His mailbox about the need to cut the Second Home Premium was zero.

He added: “Our residents aren’t affected by this. We cannot penalise our voters to pander to those who can afford a second home.”

Tenby Cllr Sam Skyrme-Blackhall said, “I cannot justify raising Council Tax on our residents to reduce second-home owners’ bills.”

Cllr Paul Miller said the impact on tourism was unknown. However, he added: “If you own properties in Tenby and Saundersfoot and you can’t let them for 182 days a year, you’re doing something wrong.”

THE CASE FOR HOUSING

Michelle Bateman said, “75% of the Premium goes to affordable housing. We must increase all kinds of affordable housing; we will not solve housing problems with social housing alone.

She added that the Council would introduce options for shared ownership and equity in spring.

“Any reduction in the Premium meant fewer people would benefit from those schemes.”

She continued: “Housing must be a priority for this Council. I cannot believe that councillors are justified deferring to a well-heeled and articulate minority ahead of those who need this funding.”

Cllrs Delme Harries and Bethan Price highlighted the lack of benefits the Premium brings to rural wards.

Cllr Mike John intervened to highlight the difference between those who inherited old family homes and contributed to local communities and those who did not, ate up the supply of affordable houses, and rented them out on Airbnb.

Josh Beynon sympathised with Cllrs Harris and Price and said services – especially social care – cost more to deliver in rural areas. However, before the pot of money was divided, the Council needed to know what was in it.

He took Aled Thomas to task. Cllr Beynon said this was not scaremongering. He and officers have tried to explain the position in budget seminars, and he would be happy to come to councillors’ wards to discuss it if they wanted. He emphasised seeking a centre ground that addressed reality.

Mike Stoddart was having none of it. He would support the Conservative motion and believed the policy was economically illiterate.

Huw Murphy sought a more radical solution. The system was overcomplicated, he said. Every residential property in Pembrokeshire should pay Council Tax, Cllr Murphy said, and there are too many properties paying nothing.

SYMPATHY FOR SECOND HOME OWNERS SECOND TO LOCALS’ NEEDS

The Cabinet Member for Housing, Michelle Bateman, responded to the debate.

Addressing Cllr Bethan Price, she said £1.4m of funding was being used to develop affordable housing at Glasfryn in St Davids.

Cllr Bateman continued by saying that her sympathy for second-home owners was outweighed by her sympathy for Pembrokeshire’s homeless and those waiting on the housing register.

Cllr Alec Cormack endorsed Michelle Bateman’s view, saying: “We should think of those with no houses, not those with two houses.

The Conservative motion fell.

COUNCIL BACKS 150% PREMIUM

The Council moved to debate Cllr Huw Murphy’s amendment to reduce the Second Home Premium to 150%

Cllr Murphy kept his remarks brief and to the point. He said he supported the idea of a premium and was keen to explore other ways the Council could use the Premium system to raise money more effectively.

Council Leader John Harvey intervened in the debate.

Cllr Harvey said it was wrong for the Council to prioritise the interests of second-home owners over those of permanent residents.

He observed that Cllr Murphy seemed to have retreated from his position last year, when he supported the 200% Premium, even though nothing had changed since last December when he supported it.

Cllr Harvey added: “We don’t have the data to change horses now, though we might next year.

“What worries me more is the loss of income.”

Jon Harvey asked councillors: “What are you prepared to cut or lose, or are you prepared to increase Council Tax to make up the gap?

“I am not prepared to say I voted to reduce second homes Council Tax and put the burden on residents.”

The IPG amended passed by 30 votes to 26 and slashed the Second Home Premium.

The next task for those who voted to shave £2.6m off the Council’s Budget will be to identify cuts or choose Council Tax increases over and above those already forecast in the Medium-Term Financial Plan.

As Cllr Jordan Ryan cynically suggested, those who voted to cut the Premium have no intention of doing either.

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