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Taxes up, spending up – It’s Reeves’ gig gamble

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THE HEADLINE from today’s Budget is a £40bn increase in taxes.

However, those tax increases are aimed at wealth, investment income, and businesses rather than standard-rate income taxpayers.

For the latter, the minimum wage rose, the price of draught beer was cut, the freeze in income tax thresholds will end, fuel duty will not rise, and the government is forecast to pump £70bn into public services and national infrastructure.

For small businesses, the Chancellor promised to “permanently lower business rate multiplies” for retail and hospitality businesses, cutting the amount of money High Street business pay in rates.

However, the Chancellor giveth and the Chancellor taketh away.

Rachel Reeves said that the employers’ NI rate will increase to 15 per cent from April next year.

In addition, the threshold at which employers start paying NI on each employee’s salary will drop from £9,100 to £5,000.

Those decisions represent a massive tax raid with massive potential impacts on prices (up), wages (lower), and hiring decisions.

Ms Reeves said that the increase in the employers’ NI rate, combined with the lowering of thresholds, would raise £25m for public services.

However, she sugared the pill, also announcing the employment allowance will rise from £5,000 to £10,500.

The Chancellor said: “This means 865,000 employers won’t pay any national insurance at all next year, and over one million will pay the same or less than they did previously.

“This will allow a small business to employ the equivalent of four full-time workers on the national living wage without paying any national insurance on their wages.”

The Chancellor also targeted wealth and inherited wealth.

Inherited pensions, formerly exempt from Inheritance Tax, will be subject to it. The threshold will be frozen (effectively, a rise). The Chancellor reintroduced the cap on lifetime pension pots, which was introduced and then scrapped under the Conservatives.

Farmers leaving estates worth over £1m will be subject to 20% in inheritance tax. Capital Gains Tax on shares and dividend income (unearned income) will rise from 10% to 18% for standard-income taxpayers and to 24% for higher-rate income taxpayers.

For those at the upper edges of income, there was even more bad news. The Chancellor announced the abolition of Non-Dom tax status, which allows the wealthy to duck tax on their income by claiming to be based abroad. That is unlikely to hit many taxpayers, but closing the Non-Dom loophole is an important symbolic act.

Rachel Reeves’s big gamble is that, by frontloading tax increases, there will be no need for substantial future tax rises for the next three years or so. Having boxed herself in on employee NI and income tax, Rachel Reeves left herself limited room for manoeuvre, making tax rises essential if she was to balance the books and fund unaccounted-for expenditures. As examples of the foregoing, Ms Reeves revealed that although the previous government announced compensation schemes for Post Office employees and postmasters and the victims of the contaminated blood scandal, it had not budgeted for funding them and – as Shadow Chief Secretary to the Treasury Laura Trott confirmed afterwards, had no intention of standing by the public sector pay awards it announced at the Budget in March.

The second gamble is that injecting money into capital infrastructure projects will drive forward growth and economic activity. If that happens, it will buck a two-decade-long trend of stagnation and industrial failure. If that works, Labour will reap the benefits; if it doesn’t, and if public services do not improve markedly, Labour will suffer.

 

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Rivers and beaches inspire Urdd Eisteddfod Chair and Crown

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YOUNG competitors at this year’s Eisteddfod yr Urdd will be competing for a Chair and Crown rooted deeply in the landscape, history and coastline of Ynys Môn.

The Chair and Crown for Eisteddfod yr Urdd Ynys Môn 2026 were unveiled on Tuesday evening (May 12) at a special event at Oriel Môn, Llangefni.

This year’s Chair has been made by carpenter Siôn Edwards, from Llanfaelog, working from a design concept by architect Rhiannon Williams, of DEWIS Architecture. It is sponsored by the Anglesey Agricultural Society.

The Crown has been created by jeweller Myfanwy Jones, originally from Llanfairpwll, with sponsorship from local estates, lettings and management agency Eiddo Cyf.

A chair inspired by rivers

The Chair’s design takes inspiration from the theme “from the rivers to the sea”, as well as the windmills of Anglesey.

Siôn Edwards, a former Design and Technology teacher who now works as a self-employed carpenter, said the theme immediately appealed to him.

He said: “Fishing is one of my main hobbies, and I also set up the Cefni Conservation Group a few years ago to improve the condition of our island’s rivers, so I was very enthusiastic when I heard ‘from the rivers to the sea’.”

The Chair has been made from locally sourced sustainable ash, found after a lengthy search at Cwm Cynfal, near Blaenau Ffestiniog.

Its exposed joints are both a design feature and a practical choice, allowing the Chair to be repaired in future if needed.

The piece also contains a link to Anglesey’s maritime past. The wedges in the Chair have been made using wood from an old RNLI lifeboat, Thomas Lingham the 4th, which left Rhosneigr in 1924 and may have been involved in the D-Day landings.

Siôn said: “A small part of the amazing story of Rhosneigr’s lifeboat now lives on in the Chair too.”

Crown reflects island beaches

The Crown has been designed by Myfanwy Jones, who studied Jewellery Design at Central Saint Martins in London before spending fifteen years living and working in the capital.

She returned to Ynys Môn in 2022 and said it was a special opportunity to create the Urdd Crown.

She said: “It’s lovely being back home, and what an amazing opportunity to create the Crown for the Eisteddfod this year – I’ve never designed a crown before.”

Before beginning the design, Myfanwy asked people on Instagram what came to mind when they thought of Ynys Môn. The most popular answer was beaches.

The finished Crown is made from brass and includes two opal stones, small jade stones and soft green velvet inside, echoing the colours of Anglesey’s coastline.

Myfanwy said: “It will be great to go to the Maes in my local area, and to see who takes home the Crown.”

‘Ynys Môn is ingrained’

Llio Maddocks, Director of the Arts at Urdd Gobaith Cymru, said: “Ynys Môn is ingrained into the Chair and the Crown of the Urdd this year; their connection to the island can be seen and felt in every little detail, from the designs and materials to the stories and history that live within these beautiful objects.

“We can’t wait for the Eisteddfod in the hope that we will see two winners take home this year’s Chair and Crown. We would like to thank the talented artists, committees and sponsors for their tireless work and generous support.”

Eisteddfod yr Urdd Ynys Môn 2026 will be held at the Anglesey Show Ground from Saturday, May 23, to Friday, May 29.

The Chairing ceremony will take place on the Thursday, sponsored by the Ivor and Aeres Evans Trust. The Crowning ceremony will be held on the Friday, with support from the James Pantyfedwen Foundation.

 

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Rhun ap Iorwerth becomes Wales’ new First Minister

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PLAID CYMRU TAKES POWER AFTER HISTORIC SENEDD VOTE

PLAID CYMRU leader Rhun ap Iorwerth has become Wales’ new First Minister following a historic vote in the Senedd today, marking one of the biggest political changes since devolution.

Ap Iorwerth secured 44 votes in the chamber, defeating Reform UK Wales leader Dan Thomas, who received 34. There were nine abstentions.

The result confirms Plaid Cymru’s move into government after the party emerged from the Senedd election as the largest group in the expanded 96-member parliament.

It is the first time Plaid Cymru has held the top job in Welsh politics, ending Labour’s long dominance of the Welsh Government since the start of devolution in 1999.

The vote followed days of intense political manoeuvring after an election which transformed the balance of power in Cardiff Bay.

Plaid Cymru won the largest number of seats but fell short of an overall majority, meaning ap Iorwerth will now lead a minority administration.

Reform UK’s Dan Thomas also put himself forward for the role of First Minister after his party’s major breakthrough at the election.

However, ap Iorwerth won the Senedd vote with support from outside his own party, while Labour members abstained.

The result leaves Reform UK as the main opposition party in the Senedd, with Labour reduced to a much smaller role after more than two decades in control of Welsh Government.

Ap Iorwerth, a former BBC journalist and broadcaster, has represented Ynys Môn in the Senedd since 2013 and became Plaid Cymru leader in 2023.

He now faces the task of forming a government and setting out his cabinet, with pressure expected immediately on health, the economy, farming, housing, transport and public services.

The change comes after the first Senedd election held under the new voting system, with 96 Members elected across larger multi-member constituencies.

For Wales, the vote marks a political turning point.

For Plaid Cymru, it is the moment the party has sought for a century: the chance to lead the Welsh Government.

Welsh Labour interim leader has congratulated Plaid Cymru leader Rhun ap Iorwerth on his appointment as First Minister.

Speaking following the vote in this afternoon’s first meeting of the Seventh Senedd, in which Welsh Labour abstained, Mr Skates said: “I look forward to being an effective opposition, scrutinising and holding Rhun and his colleagues to account where necessary to improve legislation. I hope as a Minister I demonstrated to Plaid members how collaboration and challenge are mutually beneficial and we will be focused laser-like on serving the people of Wales. No games, no nonsense, just a determination to make the lives of those we serve better

“Be assured that we will not let the party of government off the hook at any time – as they, quite rightly, did not with us.”

 

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Accessible boat trips launched for Pembrokeshire residents

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FREE accessible boat trips are being launched along the Pembrokeshire coastline as part of a new 12-month programme.

Blue Horizons CIC Surf Club has announced that its first trips will take place on Friday, May 22, with four sailings planned during the day.

The project has been made possible with support from the Port of Milford Haven and Dale Sailing Company Ltd.

Blue Horizons said the trips have been shaped alongside people with additional needs to create a more supportive and inclusive experience.

The organisation said accessibility was about more than simply getting onto a boat, but also about making sure people felt comfortable, supported and understood throughout the journey.

Its team members are DBS checked to work with children and vulnerable adults, first aid trained, experienced in supporting people with additional needs, and equipped with specialist adaptive and accessible equipment.

The trips will be free for Pembrokeshire residents.

A spokesperson for Blue Horizons said: “We know that everyone experiences the world differently. If the boat feels too fast, we slow things down. If someone needs a break or wants to turn around early, that’s absolutely fine.

“There’s no pressure and no judgement — because the people on the boat trip understand those challenges themselves.

“The coastline belongs to everyone and we can’t wait to welcome more people onto the water over the next year.”

Anyone interested can register here: https://forms.gle/WQjgsXSqhntS4zat7

 

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