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.

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.

AS WALES look to take-on the Republic of Ireland in the Play-off final for UEFA Women’s Euro 2025, viewers and listeners can follow all the action on the BBC. Rhian Wilkinson’s team will embark on arguably the most important fixtures in their history as they look to secure qualification for their first major tournament.

The first leg on Friday, 29 November at the Cardiff City Stadium is live on BBC One Wales, BBC Radio Wales and BBC Radio Cymru, all from 7pm.

The second leg at the Aviva Stadium, Dublin on Tuesday, 3 December will be broadcast live on BBC One Wales and BBC Three from 7.15pm. On radio there will be live commentary on radio Wales Sport and Chwaraeon Radio Cymru from 7pm.

Reflecting on the coverage of the matches over the next few days Cymru Head Coach Rhian Wilkinson said: “As the oft used saying goes, you cannot be what you cannot see, and that’s the gap the Welsh Women’s national Team fill when they play at home and when they are given prime viewership time on our televisions. These women have punched above their weight for a decade, a team that runs on pride and passion for their country, a team that knows nothing but giving their all for their flag.

“These women will not only step out onto the field at Cardiff City Stadium to take a step closer to making history in qualifying for Euro 2025, but will also once again be the face of what might be for so many young Welsh women. Their faces, their pride, front and centre on Welsh TVs. These women are the heroines of a generation on women here in Wales, building a pathway and a normalcy for female sporting excellence in this great country of ours.”

Broadcast details:

29 November, (ko) 7.15pm. Wales v Republic of Ireland (first leg)

Match Of The Day Wales, BBC One Wales and BBC iPlayer from 7pm

Radio Wales Sport and Chwaraeon Radio Cymru from 7pm

3 December, (ko) 7.30pm. Republic of Ireland v Wales (second leg)

BBC One Wales, BBC Three and BBC iPlayer from 7.15pm

Radio Wales Sport and Chwaraeon Radio Cymru from 7pm

A MILFORD HAVEN woman is set to appear at Llanelli Magistrates’ Court later today (Nov 26) facing charges of theft and fraud.

Kelly Rees, 35, of Precelly Place, Milford Haven, is accused of stealing three bank cards and £2 in cash from Cheryl Lewis at Carmarthen Railway Station on August 20 this year. Prosecutors allege that Rees then used the stolen bank cards to make or attempt to make fraudulent purchases at a Tesco store in Milford Haven.

The first charge, theft contrary to the Theft Act 1968, carries a maximum penalty of six months in prison and an unlimited fine if proven. The second charge, fraud by false representation under the Fraud Act 2006, carries the same potential penalties.

Rees is expected to enter her plea during the first hearing, scheduled for 10:00am.

This is a developing story, and The Herald will bring updates as they become available.