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Drakeford confirms public sector shielded from tax hike

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MARK DRAKEFORD confirmed the UK Treasury will cover increased costs of national insurance in the public sector amid concerns additional funding could be “swallowed up” by tax rises.

The former First Minister said Wales will receive full funding for employer national insurance (NI) contributions for public sector workers, as defined by the Office for National Statistics.

He told the Senedd this will be “above and beyond” an additional £1.7bn announced for Wales last week in Labour’s first UK budget in 15 years.

Prof Drakeford, Wales’ finance secretary, who will announce the Welsh Government’s own spending plans in December, described the UK settlement as a step change.

But he stressed: “It was never going to be possible to repair 14 years’ worth of damage within the first 14 weeks of a UK Labour Government.”

Prof Drakeford explained the Welsh Government will receive £235m in 2025/26 for capital investment in areas such as repairing schools or building hospitals.

In a statement to the Senedd on November 5, he said: “That is a real-terms 7% increase in a single year. That compares with 0.5% a year on average over the last 14 years.

“In 14 years of the last Conservative government, the annual uplift in capital available to the Welsh Government accumulated to the uplift we have now received in a single year.”

He contrasted this with an extra £1m in capital spending provided by Jeremy Hunt, the former Tory chancellor, in March, stating Wales now is 235 times better off.

He said: “That additional capital will not fill every hole nor undo all the damage inflicted on the fabric of our public services but it is a different world to the one we had learned to fear.”

Peter Fox, the Conservatives’ shadow finance secretary, criticised the “snatch-and-grab” budget, accusing Labour of misleading the public and breaking manifesto promises.

He told the debating chamber or Siambr: “Despite all the spin, this is the same old Labour: borrowing more, taxing more – taking more of other people’s money.”

Mr Fox said the £40bn in tax rises, which includes employers’ NI contributions, will suppress economic growth and wages, costing jobs and impacting thousands of working people.

Accusing Rachel Reeves of “fiscal fiddling”, he warned the chancellor is playing a dangerous game that risks saddling generations with debt by maxing out the country’s credit card today.

His Conservative colleague James Evans raised concerns about care homes and GP surgeries, which, unlike the health service, will not be protected from the NI hike.

Heledd Fychan suggested calls for HS2 funding, devolution of the Crown Estate and replacement of the Barnett formula had fallen on deaf ears.

Prof Drakeford said Welsh ministers would continue to make the case for rail funding and reform of the formula that is used to allocate money to Wales.

But he stressed it is unrealistic to expect fundamental change in six months, with the Barnett formula dating to 1978 and reform requiring agreement across all four nations.

Ms Fychan, Plaid Cymru’s shadow finance secretary, told the Senedd that cruel and damaging policies of the previous Tory UK Government are continuing under Labour.

Her party colleague Sioned Williams was disappointed the UK’s first female chancellor did not mention childcare in her speech given its importance to tackling inequality.

News

Andrew RT Davies resigns as Welsh Conservative leader after confidence vote

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ANDREW RT DAVIES has stepped down as leader of the Welsh Conservatives after narrowly surviving a confidence vote within his party.

In a letter announcing his resignation, Davies expressed regret, stating that his position had become “untenable” after some Members of the Senedd (MSs) threatened to resign from his frontbench if he remained in post.

The vote, held on Tuesday morning, saw Davies secure nine votes in support but faced opposition from seven MSs. Reflecting on the outcome, he said: “It was clear from the result that a substantial minority of the group do not support our approach.”

Davies has served as leader of the Welsh Conservatives in the Senedd for most of the past 13 years. His departure marks the end of a tenure defined by both challenges and significant contributions to the party in Wales.

Commenting on the resignation, Reform UK Wales Spokesman, Oliver Lewis said: “True to form, the Tories have turfed out another leader thinking that will resurrect their failing party. They care more about jousting for position than they do about serving Welsh people.

“It does not matter who they have as leader, the simple fact is they have failed in opposition just as they failed Wales in Government in Westminster for 14 years.

“The people of Wales want real change in 2026 and that is just what we plan to offer them. Wales needs Reform.”

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Politics

St Davids recycling centre saved but others to see hours cut

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CLOSURE-threated St Davids’ recycling centre is to stay open, while other facilities in the county ‘share the pain’ with a reduction in opening times to meet cost savings.

Members of Pembrokeshire County Council’s Cabinet, meeting on December 2, considered a range of money-saving options for the provision of recycling centres in the county, against a backdrop of a need to save £70,000 from the service, which included closing the St Davids centre.

Pembrokeshire currently operates six WRCs across the County; Crane Cross, Hermon, Manorowen, St David’s, Waterloo and Winsel, one of the highest levels of provision in Wales.

The council’s medium term financial plan identifies “a ‘most likely’ projected funding gap of £84.6m over the period 2024-25 to 2027-28,” with the council needing to deliver at least £70,000 of savings from the waste and recycling budget

Four options will be presented to Cabinet: no change, with the £70,000 coming from other areas of the service; the closure of St Davids netting the £70,000; its closure along with reductions in the amount of days at other centres to save £110,000; the final option being a reduction in the number of days all were open, but keeping St Davids running, saving the £70,000.

All four options were considered by the Policy and Pre-Decision Overview and Scrutiny Committee in November, where it was “acknowledged that the status quo could not continue and a requirement for change was accepted,” the committee favouring the fourth option, described as “sharing the pain,” which it recommended to Cabinet.

A complication for keeping St Davids open was a significant capital investment requirement for that site and Hermon, Cabinet members heard.

Despite concerns by Cabinet Member for Housing Cllr Michelle Bateman that she could not justify the costs, with the level of capital investment required, to keep St Davids open, fellow Cabinet member – and local councillor – Cllr Neil Prior proposed the option four was backed, supported by leader Cllr Jon Harvey.

Members, by six voted to two, backed the “sharing the pain” approach, which will  see a reduction in opening days across the county sites.

Posting on social media after the meeting, fellow local councillor Cllr Mark Carter welcomed the news “which means that St Davids WRC stays open for the foreseeable future with two opening days a week all year round,” adding: “All other WRC sites will lose one day per week. The remaining issue to be addressed at some point is the required upgrade work and where the funding will come from but for the time being St Davids WRC is safe.”

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Politics

Deputy First Minister stands with commitment to disqualify lying politicians

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THE DEPUTY First Minister reiterated a promise to introduce legislation disqualifying lying politicians amid concerns about vexatious complaints and politicisation of the courts.

Huw Irranca-Davies restated the pledge as he appeared before the Senedd’s standards committee to give evidence to an inquiry about accountability on December 2.

Labour’s Lee Waters questioned if the commitment, to a bill on disqualifying politicians found guilty of deception through an independent judicial process, will be kept by 2026.

Mr Irranca-Davies told the committee: “Come what may, that commitment stands.”

But he warned of practical complexity in disqualifying candidates and Senedd Members, raising further concerns about politicisation of the courts and vexatious complaints.

Mr Irranca-Daves said any new legislation would need to be cognisant of freedom of expression, under Article 10 of the European Convention on Human Rights.

He stated proportionality will be the key test of compliance with human rights law.

The standards committee is weighing up recommendations including creating a criminal offence of deception, a civil offence, or strengthening the existing self-regulation system.

Mick Antoniw, a former minister who gave the initial commitment to legislation to avert defeat in a Senedd vote, argued the standards committee sits as a quasi-judicial body.

Senedd counsel general Mick Antoniw
Labour MS Mick Antoniw

But Plaid Cymru’s Adam Price disagreed, drawing a distinction between self-regulation and an independent judicial process through a tribunal or criminal court.

Jane Dodds, the Liberal Democrats’ leader in Wales, called for clarity on the timetable.

Mr Irranca-Davies reiterated the commitment to bringing a bill forward before the 2026 Senedd election, saying the Welsh Government has set aside a slot for the legislation.

Turning to parliamentary privilege, which affords MPs immunity from legal challenge, Mr Irranca-Davies said the precious principle allows politicians to speak freely.

In the Senedd, privilege is limited to defamation and contempt rather than absolute but moves are afoot to provide parity across the four nations.

“We have to make sure we don’t trespass on that essential right of parliamentarians to speak freely on behalf of their constituents and against injustice,” Mr Irranca-Davies said.

Calling for the standards process as a whole to be strengthened, he backed the introduction of a system of recall, which would allow voters to boot out Senedd Members between elections.

He said: “It is very important, we believe, as a point of principle where Members are found to have fallen well short of expected standards of behaviour that the electorate do have the opportunity to remove them.”

He described the triggers used in Westminster: a custodial sentence for 12 months or less, a suspension of at least ten days or an expenses offence conviction: as a useful starting point.

But the former MP said Wales could diverge, raising concerns a ten-day suspension could tie the committee’s hands and suggesting discretion for suspensions of 30 days or less.

Mr Irranca-Davies cautioned that bringing forward a bill before the next Senedd election would require “rapid manoeuvring”, with implications for the legislative programme.

From 2026, people will vote for parties rather than individuals as the Senedd ditches the first-past-the-post system in favour of a full form of proportional representation.

The next candidate on the political party’s list would be elected, with the public having no further say on who would replace a recalled Senedd Member.

Mr Irranca-Davies said: “The [Welsh] Government remains firmly of the view that there isn’t a form of by-election, that you would see under the first-past-the-post system, that would work within this new system. The fit isn’t there.”

He argued individuals rather than parties should be punished, warning recall could otherwise undermine the proportionality of the Senedd as decided at an election.

The Deputy First Minister advocated a simple yes-no public vote on whether a politician should stay in office following a recommendation of recall from the standards committee.

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