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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.

Crime

Reform candidate co-opted to town council — graffiti appears days later

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A MAN who recently lost a by-election standing for the Reform UK party has been co-opted onto Haverfordwest Town Council — just two days before political graffiti appeared at Withybush Retail Park.

Scott Thorley, who stood for Reform UK in the Prendergast by-election earlier this year, was appointed to Haverfordwest Town Council during a co-option meeting on Thursday (Apr 17).

Campaign poster: Scott Thorley, Reform candiate

Mr Thorley came fourth in a closely fought six-way contest for a seat on Pembrokeshire County Council, securing 71 votes. The by-election, held on Tuesday, February 11, was triggered by the resignation of former Conservative councillor Andrew Edwards, who stepped down following widespread backlash over racist comments attributed to him.

Independent candidate Alun Wills ultimately won the seat with 199 votes (31.6%), ahead of Kaleb Jenkins (Welsh Liberal Democrats, 160), Mike Mathias (Welsh Conservative, 136), Scott Thorley (Reform UK, 71), Alison Tudor (Welsh Labour, 57), and James Henry Purchase (Wales Green Party, 8).

But on Saturday morning (Apr 19), just two days after Mr Thorley’s co-option, residents and shoppers were greeted with a string of large political slogans sprayed across walls and walkways at Withybush Retail Park. Messages included: “KEIR STARMER OUT, REFORM IN! GOD SAVE US” and a separate large slogan reading: “VOTE REFORM” — all daubed in white capital letters.

The incident has since been reported to Dyfed-Powys Police.

Speaking to The Pembrokeshire Herald, new town councillor Scott Thorley said: “Whoever has done this, it is vandalism plain and simple.”

Mr Thorley, who works at the retail park himself, said he did not notice the graffiti when arriving at work and was only made aware after a colleague sent him photos by phone.

He added: “The phrase ‘God Save Us’ doesn’t really sound like something a younger person would write — maybe it’s someone older. But whoever it was, this was not done by Reform. It does not help us — it’s embarrassing.”

Mr Thorley also noted the timing of the incident, saying: “It’s a bit fishy this happened less than two days after I was accepted onto the town council.”

Not happy: Cllr Tom Tudor

Haverfordwest county councillor Thomas Baden Tudor told The Herald: “Damage to public or private property is completely unacceptable, and if anyone has any information on who carried out this act of vandalism, please contact Crimestoppers anonymously — online at crimestoppers-uk.org or by phone on 0800 555 111.

“They’ll ask questions about the crime but won’t ask about you.

“Antisocial behaviour is not tolerated or acceptable in Haverfordwest.”

He added: “Alternatively, anyone with information can also call Dyfed-Powys Police on 101.

Awaiting comment: Alun Cllr Willis

The Pembrokeshire Herald contacted new county councillor Alun Wills by telephone for a comment. He said: “I have not seen the graffiti yet, I have just come back from work.” Cllr Wills said he had seen a media post about the incident, believed to be on The Herald’s Facebook page.

At the time of going to press, we are awaiting Cllr Wills to come back to us with a further comment.

The police have been contacted for a statement.

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News

Renovation of historic Tenby hotel given the green light

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WORKS to a prominent listed Pembrokeshire hotel have been given the go-ahead by national park planners.

In an application to Pembrokeshire Coast National Park, Simon Fry, through agent Asbri Planning, sought listed building consent for works to the Grade-II-listed 1-2 Royal Lion Hotel, High Street, Tenby, said to be one of the oldest hotels in the town.

The works included replacement windows, replace window with original door opening, works to existing parapet, blocking up of windows, render front elevation, blocking up of existing windows, retain existing signage, remove and rebuild existing chimney stack and other minor ancillary works.

The proposals were supported by Tenby Civic Society: “We welcome the scheme, being done very much in character with the original and will complete a very welcome refurb enhancing this prominent point in the town”

It had requested some “minor corrections,” including “retaining the ‘stage door’ stained glass window on the rear door onto Upper Frog Street”.

Tenby Town Council also supported the scheme, saying it was “a much-desired enhancement of a Grade-II-listed building within the Conservation Area”.

A supporting statement for the application said: “In terms of the replacements and overall works these would be of sympathetic materials appropriate to its setting, ensuring the existing character of the building is preserved. The intention is to replace on a like-for-like basis where possible, although the new replacements will be double glazed.”

It added: “The works are necessitated following the previous structural survey undertaken on the two ground floor bays which revealed they are in poor condition and are in need of reinstatement as soon as possible in the interests of the integrity of the listed building and for public safety.

“The replacement of the other bay structures and windows on the front and northern side elevations were also necessitated given their deterioration over time which has led to an adverse visual impact on the listed building and surrounding area.

“Given the previous state of the bays and windows, the works that have been recently undertaken are a significant betterment to the existing situation, and the works the subject of this application would further enhance the quality of the listed building, avoiding further dilapidation.”

Last year, an Urgent Works Notice was served for works on the hotel by Pembrokeshire Coast National Park Authority, with an application for those works later granted.

The latest application added: “The building in question is of great significance to the town of Tenby and its Conservation Area. It stands as one of the oldest hotels in Tenby and as identified above, holds great historic and heritage merit.”

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News

Motorboat rescued off Newgale beach after capsizing scare

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A MOTORBOAT that got into trouble off Newgale beach on Thursday afternoon (Apr 17) was brought safely ashore thanks to the quick response of St Davids RNLI.

The alarm was raised at around 3:40pm when HM Coastguard received reports of a 12-foot motorboat with two people onboard that had capsized off the popular Pembrokeshire beach.

St Davids RNLI launched their inshore lifeboat, the Alan and Marian Clayton, and quickly located the stricken vessel.

After assessing the situation, lifeboat volunteers decided to escort the motorboat to Porthclais Harbour, as it still had power. However, part-way through the journey the vessel ran out of fuel, leaving the crew stranded.

A tow line was set up, and the lifeboat took the boat under tow to ensure the safety of those onboard.

The motorboat was brought ashore safely at Porthclais just before 6:20pm, and the lifeboat returned to station where it was refuelled and made ready for the next callout.

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