News
Audit report flags financial risks for cash-strapped Pembrokeshire County Council
PEMBROKESHIRE COUNTY COUNCIL’S financial future is under scrutiny following an extremely critical report by Audit Wales, which warns of mounting risks due to the authority’s reliance on reserves and failure to address underlying budget pressures. The Financial Sustainability Review, published in October 2024, raises concerns about the council’s ability to deliver services and secure long-term financial stability.
The council’s decision to reduce the planned Council Tax increase for 2023-24 from 16.3% to 12.5% is highlighted as a key issue. Paragraph 22 of the report states:
“The revised 2023-24 budget was therefore balanced using reserves to fund the shortfall between income and expenditure. This has implications for the sustainability of the Council’s finances, as the approach does not address the underlying causes of the funding gap.”
Short-term fixes, long-term consequences
Audit Wales identifies several factors contributing to the council’s precarious position:
- Depleting Reserves: Reserve balances are projected to fall sharply, undermining the council’s financial resilience.
- Unaddressed Funding Gap: The Medium-Term Financial Plan (MTFP) for 2024-28 outlines projected deficits but lacks clear solutions to close these gaps.
- Low Council Tax Rates: Pembrokeshire has some of the lowest Council Tax rates in Wales, limiting revenue growth.
- Future Tax Burden: Reduced tax increases in the short term may result in steeper hikes in future years to recover lost revenue.
- Challenging Budget Decisions: The decision to suspend standing orders to amend the MTFP raises questions about governance and transparency.
Audit Wales warns that without a robust, long-term strategy, the council will struggle to prioritize funding and address the structural challenges threatening its financial sustainability.
Impact on residents and services
The report underscores the implications of the council’s financial approach for local residents and services. While reducing the tax increase may have provided short-term relief to taxpayers, it comes at the cost of further reliance on reserves and the potential for drastic measures in future budgets. These could include severe cuts to essential services or substantial tax hikes, placing significant strain on the community.
Additionally, overspending in key service areas adds to the challenges, as rising costs and demand continue to outpace available funding. Audit Wales emphasizes that the council’s reliance on reserves only delays difficult decisions, creating greater risks in the years ahead.
Cllr Mike Stoddart countered the report by saying: “Since the present administration came to power in 2017, Band D council tax has risen from £883 to the present £1561.
“That is an almost 80% increase compared to the rate of inflation (CPI) according to the Bank of England’s calculator of less than 30%.
“In addition they have diverted most of the second and empty homes council tax premiums into general funds.
“Their appetite for taxpayers’ money seems insatiable.
“I accept that there are service pressures in adult and children’s social care, but nowhere near enough to account for these eye-watering increases.
“So, instead of Audit Wales (AW) encouraging ever larger council tax bills, I would like to see proposals for the more efficient delivery of services – plus a dramatic reduction in the bureaucracy imposed on the council by the Welsh Government and Audit Wales, itself.
“Where I do agree with Audit Wales is with regard to its concerns about the way Standing Orders were manipulated to allow last-minute changes to last year’s council tax rate.”
Call for urgent action
Audit Wales recommends urgent steps to develop a comprehensive financial strategy that addresses these issues and ensures sustainability. The council must reduce its dependency on reserves, identify alternative funding sources, and implement measures to close the funding gap.
Pembrokeshire County Council has yet to respond publicly to the report. Residents and stakeholders now await clarity on how the authority plans to address these critical concerns and safeguard the county’s financial future.
This report highlights the challenges local authorities face amid rising costs and limited income, placing Pembrokeshire under the spotlight as it navigates turbulent financial waters.
Community
Murals legacy honoured at Town Hall
Artist Jeanne Lewis recognised as Pembroke celebrates 20 years of historic artwork
MRS JEANNE LEWIS and her daughter were guests of honour at a special presentation at Pembroke Town Hall on Tuesday to mark the 20th anniversary of the historic murals installed inside the building.
Two handcrafted benches, gifted by Pembroke Town Council, were presented in appreciation of the artwork created by Jeanne and her late husband, George Lewis, whose striking panels have become a defining feature of the Hall over the past two decades.
The murals, which vividly depict scenes from Pembroke’s past, have long drawn praise from residents and visitors alike for their scale, colour and intricate storytelling.
The Mayor of Pembroke, Gareth Jones, joined councillors and volunteers from Pembroke Museum to present Mrs Lewis with a Certificate of Appreciation and a bouquet of flowers in recognition of the couple’s lasting artistic legacy.
Councillor Jones said the town was “extremely fortunate and deeply privileged” to house the collection.

He added: “People often walk into the Town Hall and simply stop to look. The detail and the history captured in these murals are remarkable. They give visitors a real sense of Pembroke’s story and reflect the dedication and talent Jeanne and George brought to the project.”
Twenty years on, the artwork continues to enrich the civic building, ensuring the Lewis family’s contribution remains at the heart of the town’s heritage.
Photo caption: Jeanne Lewis receives a certificate from Mayor Gareth Jones at Pembroke Town Hall, marking 20 years since the installation of the town’s historic murals (Pic: Martin Cavaney/Herald).
News
Welsh peace campaigner removed from court during Palestine protest case
Concerns raised over use of terrorism laws against silent sign-holders as Welsh activist among those ejected from London hearings
A WELSH peace campaigner was among several protesters removed from court by security staff this week as plea hearings continued for people charged under terrorism legislation for holding pro-Palestine signs.
Angie Zelter, aged 74, from Knucklas, appeared at Westminster Magistrates’ Court in London on Monday as part of mass proceedings linked to the Government’s ban on Palestine Action.
Campaigners say hundreds of people across the UK – including some in Wales – have been charged under Section 13 of the Terrorism Act 2000 after quietly holding handwritten signs reading: “I oppose genocide. I support Palestine Action.”

Zelter, a long-time anti-war activist and founder of Trident Ploughshares, attempted to read a prepared statement criticising the prosecutions before being escorted from the courtroom, according to supporters.
She told the court she did not accept being labelled a terrorist for what she described as peaceful protest and opposition to the war in Gaza.
Outside the building, fellow campaigners said she had sought to argue that international law and freedom of expression should protect non-violent dissent.
Also removed from the hearing was Tim Crosland, co-founder of Defend Our Juries, who said he had tried to raise legal objections to the charges before being asked to leave.
Arrests nationwide
Organisers of the “Lift The Ban” campaign claim nearly 3,000 people have been arrested across Britain since late 2025 for taking part in silent vigils, with several hundred now facing prosecution. The offences carry a maximum sentence of six months in prison.
The group argues the legislation is being used to criminalise peaceful protest. It is calling on the Government to lift the ban on Palestine Action and to change its stance on military cooperation with Israel.
However, ministers have defended the proscription, saying the organisation has been linked to criminal damage and disruption at sites connected to defence manufacturing.
Welsh perspective
While most hearings are taking place in London, campaigners say demonstrators in Wales have also taken part in sign-holding protests.
Civil liberties advocates have warned that applying terrorism laws to non-violent protest risks setting a troubling precedent.
For many in mid Wales, the sight of a pensioner from rural Powys being removed from a courtroom has sharpened debate over where the line lies between legitimate protest and criminality.
Further hearings are scheduled in the coming weeks, with more defendants from across the UK expected to appear.
Finance
Barclays raises mortgage rates by up to 0.15% in fresh blow to borrowers
HOMEOWNERS and buyers have been dealt another setback after Barclays became the latest high street lender to increase mortgage rates, pushing up fixed deals by as much as 0.15%.
The move follows similar rises from HSBC and Nationwide Building Society, signalling a broader shift across the market after months of gradually falling prices.
Barclays confirmed that residential purchase and remortgage products will both increase.
Among the changes, its five-year fixed remortgage deal at 60% loan-to-value (LTV) rises from 4.00% to 4.15%. The product requires a minimum £50,000 loan and allows borrowing up to £2 million.
Purchase-only deals are also affected. A five-year fixed rate at 60% LTV with an £899 fee climbs from 3.79% to 3.90%, while a two-year fixed deal increases from 3.77% to 3.85%.
Industry experts say the rises reflect growing funding costs and cooling expectations of imminent interest rate cuts.
Jonathan Alvarez Herrera, mortgage consultant at Ayla Mortgages said: “Barclays’ decision to increase mortgage rates is a clear sign that the recent downward momentum in pricing has stalled. Borrowers had been seeing improvements in recent months, but this repricing shows lenders are reacting to higher costs and changing market expectations.
“Barclays is not acting alone. HSBC and Nationwide have already moved, which suggests this is a market-wide correction rather than an isolated decision.
“With swap rates edging higher, lenders are rebuilding margins. Markets also expect the Bank of England to remain cautious, meaning rate cuts could be slower than previously hoped.”
Mortgage brokers pointed to rising SONIA swap rates and inflation ticking up to 3.4% in December, from 3.2% the month before, as key drivers behind the increases.
The changes may frustrate buyers hoping that 2026 would bring cheaper borrowing costs, particularly first-time purchasers and households coming off fixed deals agreed during the low-rate period.
With several major lenders now moving in the same direction, brokers warn others could follow if funding costs remain elevated.
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