News
Chancellor set to raise National Insurance for employers to fund public services
THE Chancellor is poised to announce a significant increase in National Insurance contributions for employers, aiming to generate £20 billion in additional funding for public services, including the NHS in England.
The Budget, set for Wednesday, will likely feature a lowered threshold for employer contributions to National Insurance, allowing these combined measures to become the largest revenue drivers in the upcoming Budget. However, Chancellor Rachel Reeves is not expected to apply the increase to employers’ pension contributions.
Currently, employers pay 13.8% on earnings over £175 a week. A two-point hike to 15.8% would yield an estimated £18 billion annually, though the threshold adjustment may push that figure higher.
A government source commented: “There is a universal consensus that the NHS needs more money. That means asking businesses to help out. The choice is investment versus decline.”
Tough choices for NHS funding
Speaking at a news conference during the Commonwealth Heads of Government Meeting in Samoa, Prime Minister Sir Keir Starmer remarked that the government is prepared to make “tough decisions” to support the NHS. However, he declined to provide further Budget details.
National Insurance represents the UK’s second-largest revenue stream after income tax, encompassing contributions from employees, the self-employed, and employers. The Chancellor has signaled that while the Labour manifesto promised not to increase National Insurance for “working people,” this was intended to shield employee contributions, not those of employers.
Wider budget implications and business concerns
As Labour prepares for its first Budget in nearly 15 years, concerns are rising about the potential for further tax changes, including a freeze on income tax thresholds, a possible hike in taxes on asset sales, and revisions to inheritance tax.
In a recent International Monetary Fund meeting, Reeves underscored the need for responsible spending, hinting that a return to austerity is off the table. Instead, she emphasized that day-to-day expenses must align with tax receipts, given the current state of critical services like the NHS and prisons.
Yet the potential impact of these changes has sparked concerns among businesses, who argue that a National Insurance hike could dampen job creation and wage growth, ultimately hampering economic expansion. The government, however, maintains that these funds are essential to rescue the NHS, even as critics argue the increase is a “tax on jobs” and breaches the Labour manifesto.
Addressing the housing crisis
In addition to healthcare funding, the Chancellor is expected to unveil a £500 million initiative to build up to 5,000 affordable homes in England, aimed at addressing the national housing crisis. This will be accompanied by a consultation to limit Right to Buy, protecting council housing stock for future generations.
Meanwhile, the Fire Brigades Union has called on Reeves to deliver a Budget that ends what they describe as the “catastrophic austerity era.” In a letter to the Chancellor, Union leader Matt Wrack warned of potential strike action if the Budget does not provide substantial funding, citing severe hardship among firefighters due to prolonged real-term pay cuts.
As Wednesday approaches, Labour faces the task of balancing its commitment to economic growth with the urgent demands of public services. The Conservatives, however, have criticized the impending National Insurance hike, accusing Labour of redefining the term “working people” as the Budget deadline looms.
News
Recounts concern raised over new Senedd voting system
Political sources warn tiny vote differences could decide final seats under Wales’ new proportional voting system, with fears of inconsistent recount decisions across the country
QUESTIONS have been raised over how recounts will be handled in Wales’ first Senedd election using the new six-member proportional voting system, amid fears that tiny vote differences could decide the final seat in some constituencies.
Under the new arrangements, Wales has been divided into larger multi-member constituencies, with six Senedd Members elected in each area using the D’Hondt system of proportional representation.
Political sources have expressed concern that the current Electoral Commission guidance may not adequately address situations where the allocation of the sixth and final seat could hinge on very small differences in party vote totals.
One political source, who asked not to be named, said the issue was not about the competence or integrity of Returning Officers, but about the lack of detailed public guidance surrounding recount decisions under the new system.
They said: “In some constituencies, the final seat may come down to a very narrow margin once the D’Hondt calculations are applied, even if no party’s overall vote total appears especially close in traditional terms.
“The concern is that there appears to be no clear guidance about how close the contest for the final seat needs to be before a recount is granted.”
The source warned that without clearer guidance there could be inconsistencies across Wales, with recounts potentially being allowed in one constituency but refused in another despite similar margins.
Electoral Commission guidance currently states that Returning Officers must be satisfied vote totals are accurate before producing a provisional result and that candidates and agents are entitled to request recounts.
However, the guidance also makes clear that Returning Officers may refuse recount requests if they consider them “unreasonable”.
The Electoral Commission said the existing rules already provide a framework for openness and transparency during the counting process, with candidates and agents allowed to inspect ballot bundles and challenge provisional results before declarations are made.
The guidance also confirms that more than one recount can take place if Returning Officers believe further recount requests are justified.
But critics argue that Wales is entering untested territory with the new electoral system, where relatively small shifts in vote totals could alter the final seat allocation after D’Hondt calculations are completed.
The Senedd election is the first to use the new system, which replaces the previous arrangement of constituency and regional members with fully proportional six-member constituencies across Wales.
This story was first reported by Nation.Cymru, you can read their report here.
Charity
Chief’s Tour honours fallen officers with 75-mile Pembrokeshire ride
Dyfed-Powys Police team raises thousands for bereaved police families charity
A TEAM of officers and staff from Dyfed-Powys Police cycled 75 miles across west Wales on Wednesday (May 6) in memory of colleagues who lost their lives in the line of duty.
The annual “Chief’s Tour of Pembs 2026” saw participants travel from Fishguard to Carmarthen while raising money for the charity Care of Police Survivors, commonly known as COPS.
The force said the event raised £2,690, with funds going towards support for the families of police officers who have died while serving their communities.

Along the route, cyclists stopped at several locations to meet relatives of fallen officers and take part in moments of reflection.
In a statement shared on social media, the force said the tour was held “in memory of all Dyfed-Powys Police officers who have lost their lives in service.”
The post added: “Those we’ve lost will always remain in our thoughts.”
COPS supports the families of officers who have died on duty by organising national and regional events, helping survivors build support networks and friendships with others who have experienced similar loss.
Dyfed-Powys Police thanked members of the public who supported the cyclists during the challenge.
“A huge thank you to our community for showing our Chief’s Tour cyclists support as they passed through Pembrokeshire,” the force said.






“Your cheers, waves and encouragement kept spirits high for those taking part.”
The 75-mile challenge took riders across parts of north and west Pembrokeshire before continuing east towards Carmarthenshire, combining physical endurance with remembrance and fundraising.
Police charities such as COPS often work quietly behind the scenes, supporting bereaved families long after national attention fades following the death of an officer.
Education
Holocaust survivor’s story shared with pupils at Ysgol Greenhill
MORE than 150 pupils at Ysgol Greenhill have heard the moving Holocaust testimony of the late Zigi Shipper BEM, who survived some of the most terrible events of the Second World War.
The special visit took place on Tuesday (May 5), when Mrs Lu Lawrence came to the school to speak about the life of her father.
Zigi Shipper survived the Lodz ghetto, Auschwitz-Birkenau, Stutthof concentration camp and a death march, among other traumatic events. When he was liberated by British forces, he was just 15 years old.

Mrs Lawrence spoke to Key Stage 3 and GCSE pupils, sharing not only her father’s testimony but also her own family’s story.
Ysgol Greenhill said more than 150 students attended the session and were “exceptionally well behaved”, asking thoughtful questions during the visit.
The school said: “In the current climate of increasing anti-Semitism, understanding the dangers of prejudice is more important than ever.”
The visit was arranged by the Holocaust Educational Trust, which works with schools to ensure young people continue to learn about the Holocaust and the dangers of hatred and discrimination.
The session gave pupils an opportunity to hear a deeply personal account of survival, loss and resilience, and to reflect on why Holocaust education remains so important today.
Photo caption:
Important lesson: Mrs Lu Lawrence visited Ysgol Greenhill to share the Holocaust testimony of her late father Zigi Shipper BEM (Pic: Ysgol Greenhill).
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