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Politics

Pembrokeshire council overspend set to rise to £3.9m

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PEMBROKESHIRE County Council is facing a predicted overspend in its annual budget of nearly £4m, with a moratorium on all non-essential expenditure still in force, a report before senior councillors next week says.

Members of Pembrokeshire County Council’s Cabinet, meeting on November 4, will receive a report on the quarter two figures for the 2024-25 budget, highlighting an expected overspend of £3.9m by the end of the financial year.

The budget for 2024-25 was approved by council on March 7. This is the second budget monitoring report for 2024-25.

The predicted overspend is up from £2.9m in the quarter one figures; a year ago, the q2 overspend – for the 2023-’24 budget – was £3.6m.

A report for members says the £303.5m revenue net expenditure budget for 2024-25 is £303.5m, “set against a backdrop of increased level of demand, complexity and cost of packages within our School ALN provision, Children’s Services, Adult Services and Homelessness”.

It adds: “This increase in demand, complexity and cost of packages has continued into 2024-25 with material projected overspends within social care & housing totalling £8.8m. Although work is being undertaken to try to reduce the cost of packages, it should be noted that these demand levels are projected to continue into 2025-26 and future years, creating further additional permanent budget pressures that will either need to be met through additional budget savings, income generation or increased council tax.

“The projected outturn at Q2 2024-25 is £307.1m, representing a projected overspend of £3.6m.  There is also a projected shortfall in 2024-25 council tax collection which will result in a £0.3m reduction in funding received.  The resulting £3.9m shortfall will need to be funded from reserves in 2024-25.”

In the report, Director of Resources Jon Haswell said: “It is worrying that the projected overspend for 2024-25 has increased to £3.9m, which will have to be funded from reserves at the year end, reducing further the limited reserve balances.  The projected overspend is due to Social Care (Children’s Services and Adult Services) projecting to overspend by £8.6m in 2024-25.”

He added: “Social Services must take immediate action in order to address the projected overspend accepting that this is likely to have an adverse impact on service provision. It is extremely unlikely that the projected outturn for 2024-25 will return to a balanced budget position, therefore the moratorium on non-essential expenditure will have to remain in place for the remainder of the financial year.  In order to reduce the projected overspend during Quarters 3 and 4, consideration will have to be given to delaying or ceasing the appointment of essential posts, accepting how challenging this will be on services.”

In the report he says the funding gap for 2025-’26 will be exacerbated by the October 17 decision to cut the second homes council tax premium from 200 to 150 per cent, leading to a base funding reduction of £2.697m.

As 85 per cent of Second Homes premium is used to fund elements of the council budget relating to affordable housing and enhancing the sustainability of local communities this will result in a base pressure of £2.292m to the council budget for 2025-26.

Members are recommended to note the report and that if the projected overspend of £3.9m is not recovered during the financial year it will be funded from reserves.

 

Business

Pembrokeshire St Davids family-friendly coffee bar plans

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PLANS to change a former hairdressing salon in Pembrokeshire’s only city to a family-friendly coffee bar have been submitted to the national park.

In an application to Pembrokeshire Coast National Park, Gerallt Nash seeks permission for a change of use of 26 High Street, St Davids from a hairdressing salon to a family friendly coffee bar and children’s playroom.

The First floor, formerly used as accommodation of a tenant, would be used as an office and storage of business.

A supporting statement says: “It is proposed to open a family-friendly coffee bar with a children’s playroom on ground floor. It is not intended to cook food on the premises, therefore there will be no requirement for an extractor system.

“ Other than small scale repairs to part of one floor, and the installation of a sink and serving counter in the inner room (plumbing and electrics are already in place since its last use as a salon) the main work will be the redecoration of surfaces and ceilings, the provision of new light fittings and laying of new floor coverings.

“This part of High Street has been identified as a ‘commercial’ zone by PCNPA. Existing businesses close to No 26 include outdoor and surfing outlets; restaurants; clothes shops; holiday accommodation; ice cream parlour; fish and chips outlet; delicatessen and craft shops.

“The current proposal would fill a gap in the market, as most food outlets do not open until after 11am or 12pm, or only during the evenings in some cases. It would also provide somewhere for [young] families to go to unwind whilst their children can relax in the playroom.”

It says No 26, also known as ‘Preswylfa,’ was “part of a row of three shops (with dwelling accommodation above), built and owned by Thomas Evans of Solva probably during the late 1870s,” one “leased, and later purchased, by the applicant’s great grandfather, David Evans, who owned the local windmill”.

Detailing No 26’s history, it says: “Over the years, it has served as a grocery shop, veterinary surgery (before the current building at the rear of the property), café, and hairdressing salon (on at least three different occasions).

“Mrs Susan Bennett, who ran ‘Susan’s Hairdresser’ at No. 26, retired on 1 November 2024. Since then, the exterior of the property has been repainted. A new tenant, Keeley Rose, took over the lease on December 1, 2025.”

The application will be considered by park planners at a later date.

 

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Politics

Bid to secure coastal Pembrokeshire bus routes before the summer

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A CALL for a £75,000 grant to support the coastal bus network in Pembrokeshire has been backed by the national park.

At the March meeting of Pembrokeshire Coast National Park, members were recommended to authorise payment of approximately £75,000 to Pembrokeshire County Council as a contribution towards the coastal bus network and the Integrated Transport Unit Strategy Manager post for the financial year 2026/2027.

A report for members said: “The Authority has contributed financially towards the provision of the coastal bus services and the Integrated Transport Unit Strategy Manager post and seeks agreement for financial contributions to be made over the financial year 2026/27. The financial contribution of approximately £75,000 is considered to be manageable for the Authority.”

It added: “Continued funding during the next financial year is critical during a period of transport reform and will help secure the future of the coastal bus provision when services are franchised across the region.

“If Pembrokeshire County Council were to introduce a tourism levy in the future, it is anticipated that revenue generated through such a scheme could be used to support sustainable transport infrastructure, including the coastal bus network.

“The Authority has made longstanding payments towards the operation of the coastal bus network and support services provided by a transport officer post. In the financial year 2025/2026 the National Park Authority’s contribution was: – £55,989 contribution to the Coastal bus services – £16,400 towards the Integrated Transport Unit Strategy Manager post which provides the Secretariat for Pembrokeshire Greenways and coordinates the Coastal Bus provision. The Authority also contributes £7,000 towards the Tenby Park and Ride Service, however, this is under a separate agreement.”

This year, a contribution for the coastal bus services of £58,117, together with an identical £16,400 towards the Integrated Transport Unit Strategy Manager post was sought, bringing the total amount to £74,517.75.

It said the 2025-’26 total cost of running the coastal bus network, covering the 400 Puffin Shuttle, the 404 Strumble Shuttle, the 403 Celtic Coaster, and the 387/388 Coastal Cruiser amounted to £316,755.95; the park’s financial contribution equating to 17.6 per cent of the total cost against a historic contribution of approximately a third, the remainder council funded through the Bus Network and Bus Service Support Grants.

The report added: “The services operate almost entirely within the National Park, providing access to the majority of the coast for visitors and also provides a service for residents. The Authority’s contribution enables the provision of enhanced services to the Pembrokeshire coast, running daily, seven days per week through the summer.”

Members backed the £75,000 contribution recommended.

 

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Business

Fishguard to Wexford rail tunnel plan backed by Elon Musk firm

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Six-hour London to Dublin service proposed in £32bn project ahead of Senedd election

PLANS for a rail tunnel linking west Wales directly to Ireland have emerged, with a company owned by tech billionaire Elon Musk said to be involved in early-stage discussions.

The proposed fixed link would connect Fishguard with Wexford, creating the first direct rail connection between the UK and Ireland.

Sources indicate that The Boring Company has been exploring the feasibility of constructing the tunnel, which could form part of a wider transport corridor linking London and Dublin.

Six-hour London to Dublin service

Under the plans, an express rail service could run directly from London to Dublin in around six hours, significantly reducing current journey times and removing the need for ferry crossings.

Passengers would travel via south Wales before entering the tunnel beneath the Irish Sea, with vehicles transported on specialised rail carriers similar to those used on the Channel Tunnel.

One source familiar with the discussions said: “This would be a game-changer for connectivity between Britain and Ireland. It’s being looked at very seriously.”

£32bn project backed by private investment

The project is expected to cost in the region of £32 billion, with the bulk of funding understood to come from private sector investors.

Sources suggest that both the Welsh Government and Irish authorities would support the scheme through planning, facilitation and long-term guarantees, but that no direct funding has been committed by Westminster.

Insiders say the decision reflects ongoing pressure on UK public finances following the spiralling cost of High Speed 2.

HS2 ‘owes Wales’ debate reignited

The proposal is also expected to reignite debate over whether Wales should have received additional funding as a result of HS2.

Critics have long argued that the classification of the project as an “England and Wales” scheme has denied Wales billions of pounds in consequential funding through the Barnett formula.

One political source told The Herald: “There is a growing view that HS2 effectively owes Wales a major infrastructure investment of its own.”

Election timing questioned

It is understood that the Welsh Government has brought forward the proposal just weeks ahead of the Senedd elections, in what some insiders believe is an attempt to boost support.

With First Minister Eluned Morgan facing a challenging political landscape, sources suggest the announcement of a bold, high-profile infrastructure project could help shift momentum ahead of polling day.

One insider said: “This is exactly the kind of big, attention-grabbing policy that can change the narrative during an election campaign.”

However, the concept of a fixed link between south Wales and Ireland is not new. A 2004 report by the Institution of Engineers of Ireland outlined a “Tuskar route” linking Fishguard and Rosslare via a tunnel beneath the Irish Sea. The proposal, which formed part of a wider long-term transport vision for Ireland, suggested a crossing of around 45 miles (72km) — broadly comparable in scale to the current plans under discussion.

Ferry firms raise concerns

Operators running services from Fishguard Harbour have reacted with concern, warning the plans could have a major impact on existing ferry routes.

An industry source said: “If this goes ahead, it would fundamentally change travel patterns. Ferry services could struggle to compete.”

Questions over Cardiff Airport links

The proposal is also likely to raise questions about the future of existing air routes between Wales and Ireland, particularly those operating from Cardiff Airport to Dublin.

With the Welsh Government owning and subsidising the airport, critics say a high-speed rail alternative could put pressure on passenger numbers.

One observer said: “If you suddenly have a direct six-hour rail service city-to-city, it inevitably puts pressure on short-haul flights.”

Economic boost for west Wales

Supporters of the scheme argue that, if delivered, the project could provide a major long-term economic boost to west Wales, improving connectivity, increasing tourism, and strengthening trade links.

The Herald understands that early projections suggest the scheme could bring significant investment and job creation to Pembrokeshire during both construction and operation.

However, key details — including environmental impact, construction timelines and final funding arrangements — have yet to be confirmed.

A fixed link between south Wales and Ireland has been discussed in various forms for decades, but has never progressed beyond early-stage proposals.

Some within government are said to view the scheme as a way of finally delivering Wales’ share of major infrastructure investment following HS2.

 

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