News
Taxes up, spending up – It’s Reeves’ gig gamble
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.
Community
Fire leaves Letterston families homeless after homes destroyed
Two houses lost and a third badly smoke-damaged as villagers rally to support those affected
THREE families have been forced from their homes after a major fire tore through a terrace in Letterston, destroying two properties and leaving a third badly affected by smoke.
The blaze broke out at around 4:00pm on Wednesday (Apr 15), prompting a major emergency response from fire crews across west Wales.
Appliances were sent from Fishguard, Haverfordwest, Milford Haven, St Davids, Narberth, Carmarthen and Tumble as firefighters worked for hours to bring the incident under control.
Residents nearby said they first noticed what looked like a dark haze outside before realising smoke was pouring from the row of houses. As the seriousness of the situation became clear, people in neighbouring homes were told to get out.
Witnesses described seeing flames race through the roof spaces of the terrace, while windy conditions made the fire harder to contain. There were also reports of loud bangs as the blaze spread close to overhead power lines.
Fire crews remained at the scene into the evening, supported by utility workers dealing with the electricity supply. Some nearby homes were left without power until late that night.
By the time the fire was out, two houses had been completely gutted. A third remained standing but was left uninhabitable because of heavy smoke contamination inside.
Among those affected was a young family with a three-month-old baby. Although their house was not destroyed structurally, smoke damage is understood to have ruined furniture, clothing and other possessions, including items for the child.
All three households have since moved in with relatives or friends while they deal with the aftermath.
Despite the scale of the incident, nobody was injured.
The fire has shocked the village, but local people have quickly stepped in to offer help, with fundraising appeals launched to support those who have lost their homes and belongings.
How to help
Fundraising appeals can be found at:
gofundme.com/f/help-young-family-return-home-after-smoke-damage
gofundme.com/f/friends-house-destroyed-by-fire-f24y5
gofundme.com/f/the-families-effected-by-the-fire
Crime
Man cleared after prosecution offers no evidence at Crown Court
Swansea Crown Court entered formal not guilty verdicts on all counts, bringing the case to an end
A HAVERFORDWEST man has been cleared after the prosecution offered no evidence against him at Swansea Crown Court.
Luke Phillips, 23, of Woodlands Park, Haverfordwest, had previously faced charges relating to indecent images of children and extreme pornography.
The case came before His Honour Judge Thomas KC on Monday (Apr 13).
When the matter was called on, the prosecution offered no evidence on all counts.
Formal not guilty verdicts were then entered on each count, bringing the proceedings to an end.
Phillips was represented by barrister Ian Ibrahim.
The outcome means there is no further action to be taken in relation to the case.
It is understood that property seized during the investigation can now be returned following the conclusion of the proceedings.
Community
Pembrokeshire among worst-hit areas as accidental deaths rise
PEMBROKESHIRE and Carmarthenshire have been named among the worst-affected areas in England and Wales for accidental deaths, according to new figures from the Royal Society for the Prevention of Accidents.
Newly-published data shows Pembrokeshire recorded an accidental death rate of 55.18 per 100,000 people in 2023, with Carmarthenshire close behind on 55.15. Both figures are rounded to 55 and place the two west Wales counties in the top 10 highest local authority areas across England and Wales.
Pembrokeshire ranked eighth on the list, while Carmarthenshire was ninth.
The figures form part of RoSPA’s latest Annual Review of Accidents, which warns that preventable deaths and injuries are continuing to rise across the UK.
Wales as a whole recorded an accidental death rate of 44.25 per 100,000 people in 2023, far above the UK-wide figure of 33.97. Only Scotland recorded a higher national rate.
The report paints a worrying picture for Wales, where RoSPA says accidental deaths have risen by 43 per cent over the past decade and now claim more than 1,200 lives a year.
Falls remain the biggest single cause of accidental death. In Wales, 733 people died in falls in 2023, up from 560 the previous year. That equates to a fatal falls rate of 23.15 per 100,000 people across the country.
The local breakdown suggests falls are also a major factor in west Wales. Pembrokeshire recorded a falls death rate of 28.79 per 100,000, while Carmarthenshire stood at 27.31. Carmarthenshire also had a notably higher accidental poisoning death rate than Pembrokeshire.
Across the whole of the UK, RoSPA estimates around 23,000 people died in accidents in 2023, while almost 900,000 people were admitted to hospital because of accidental injuries in 2023–24.
Becky Hickman, chief executive of RoSPA, said too many families were suffering life-changing loss from incidents that could often have been prevented.
She said: “Accidents devastate lives in an instant.
“They are often sudden, violent, and shocking, leaving families and communities to cope with consequences that can last a lifetime.
“What makes this devastation even harder to bear is the knowledge that so many of these incidents are entirely preventable.”
RoSPA has called for stronger action from governments across the UK, including a national strategy to reduce accidental deaths and serious injuries.
Ahead of the 2026 Senedd election, the charity has also launched its Stronger, Safer Wales campaign, urging the next Welsh Government to treat accident prevention as a major public health priority.
The charity says the risks in Wales are particularly acute in areas such as falls, accidental poisonings, rural roads, machinery-related incidents and water safety.
Ms Hickman said: “Our Annual Review of Accidents shows we are still not doing enough to reduce avoidable harm, life-changing injuries and personal tragedies.
“From our roads to our workplaces, the homes we live in to where we spend our leisure time, people in Britain are at increasing and unacceptable risk of suffering a serious accident.”
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