Politics
Pembrokeshire council tax could increase by 16 per cent
COUNCIL tax in Pembrokeshire could have to increase by nearly 16 per cent next year to balance the council’s books in “the most challenging financial situation to face Pembrokeshire County Council since its inception”.
Members of Pembrokeshire County Council’s Cabinet, meeting on December 2, are to receive a report on the outline draft council budget 2025-26, along with the outline draft medium term financial plan up to 2028-29.
The reports, the ’25-’26 budget of which projected funding gap for 2025-26 of £34.1m, will eventually inform a final decision on next year’s budget and council tax bills.
Part of the budget setting is the amount of money received from Welsh government through the Aggregate External Finance (AEF) funding, now expected to see a two per cent, or £4.4m, increase, which has been budgeted into the figures, the final amount for all Welsh councils being announced on December 11.
A report for members says: “The most significant cost pressure for the 2025-26 budget is demand for Social Care across both Adult and Children’s Services, with a projected total increase in pressure of £25.0m (most likely scenario) for Social Care for 2025-26 representing 58.8 per cent of the total council service pressures for 2025-26; and £64m across the remainder of the medium-term financial plan (MTFP).
“Based on the current projected funding gap of £34.1m, it is evident that major budget savings as well as a significant council tax increase will be required in order to deliver a balanced budget for 2025-26. The lower the Band D Council Tax increase, the higher the budget savings requirement will be, with the consequential adverse impact on the provision of council services.”
The current MTFP assumes a Band D Council Tax increase of 11.14 per cent in 2025-26, followed by a 7.5 per cent increase for the remainder of the MTFP.
The October decision to reduce the premium of the council tax levels for second homes in Pembrokeshire from 200 to 150 per cent has left a financial shortfall of £2.3m on its own, the report says, adding this would require a council tax increase of 2.79 per cent, to 13.93 per cent to make up the loss, subject to a later full council backing.
It says overall the 11.14 per cent council tax option would leave the council with a funding shortfall of £5.2m even after draft budget savings of £19.7m, some in the most severe categories, have been made, with a £2.9m shortfall for the 13.93 per cent council tax rise scenario.
It says: “Assuming use of all of the £19.7m Green to Red2 budget savings options and £1.3m use of reserves the remaining £13.1m funding gap will [need to] be met through the increase in council tax (including use of council tax premiums).
“A council tax requirement of £13.1m equates to an increase in council tax of £4.61 per week (15.92 per cent) for a Band D property.”
The council is to seek the public’s views on its Outline Draft Budget through public consultation running up to January 5; a final draft budget eventually considered by Cabinet on February 10 with a final decision by full council on February 20 of next year.
international news
Mandelson quits Lords amid police probe over Epstein links
Peter Mandelson has announced he will retire from the House of Lords with immediate effect, as mounting political and legal pressure grows over claims he shared sensitive government information with convicted sex offender Jeffrey Epstein.
Parliamentary officials confirmed that Peter Mandelson formally notified the Clerk of the Parliaments of his decision, ending his membership of the upper chamber from Tuesday (Feb 4).
The move follows reports that the Metropolitan Police Service is reviewing allegations of possible misconduct in public office connected to emails said to have been forwarded to Epstein while Mandelson was business secretary during the 2008–09 financial crisis.
Downing Street has confirmed that material has been passed to police after an initial Cabinet Office review.
Government fury

Prime Minister Keir Starmer told cabinet colleagues Mandelson had “let his country down”, according to No 10, and officials are now drafting legislation that could strip him of his peerage entirely.


Removing a life peer is rare and would require an Act of Parliament.
If passed, Mandelson would lose the title “Lord” altogether — an extraordinary step that has only been considered in the most serious cases.
Senior ministers have described the alleged passing-on of market-sensitive government discussions as “disgraceful” and a “betrayal of trust”.
What police are examining
Misconduct in public office is a centuries-old common law offence that applies where someone in a position of public trust wilfully abuses that role. It carries a maximum sentence of life imprisonment.
Investigators will assess whether confidential information — particularly relating to government financial policy during the crash — was shared without justification and whether safeguards were breached.
At this stage, no charges have been brought.
Mandelson has previously apologised for maintaining contact with Epstein after the financier’s conviction, saying he regrets “ever having known him”, but he has disputed some of the latest claims and has not commented directly on the police review.
Political shockwaves
Opposition parties are pushing for further disclosure of documents relating to Mandelson’s vetting and his past roles.
Conservatives are expected to force a Commons vote demanding more information, while Liberal Democrats have called for a public inquiry.
Several MPs have also suggested Mandelson should be removed from the Privy Council.
The developments mark a dramatic fall for one of Labour’s most influential political figures of the past three decades, who only months ago was serving as the UK’s ambassador to Washington.
Now, with police examining evidence and legislation being prepared to remove his title, his public career appears effectively over.
More updates are expected as the investigation continues.
Community
Cilgerran Church in Wales school petition to be heard
A PETITION opposing proposed changes for a north Pembrokeshire school is to be heard by councillors later this week.
At last May’s meeting, Pembrokeshire County Council considered a report of the School Modernisation Working Group which outlined the findings of a review of education provision in the Preseli area.
A later July meeting backed a general consultation to discontinue Cilgerran Church in Wales Voluntary Controlled School, and to establish it as a 3-11 community school.
“In particular, the review considered the extent of surplus school places in the area, set against a significant decline in the pupil population,” the council in its consultation has said.
The consultation closed on January 30.
Hundreds have opposed the proposed changes, with a petition, on the council’s own website opposing the changes recently closing after gaining 391 signatures.
Any petition of more than 100 signatures triggers a debate at one of the council’s scrutiny committees, in the case of Cilgerran that debate taking place at Pembrokeshire County Council’s February 5 schools and learning overview and scrutiny committee.
The Cilgerran e-petition, created by Louise Williams, raised concerns including the school could become part of a federation, a loss of permanent head teacher on site, a shared head teacher would have to oversee several schools, loss of funding control and the ability to maintain the school’s current healthy and stable funding, and a loss of commitment to the church, in turn could impact on the school’s and pupils values, beliefs and cultural beliefs.
It said: “Ysgol Cilgerran VC school has strong links with the Church community in Cilgerran and we believe this will have a negative impact on the children who attend the school, the community of Cilgerran and the links between the two.
“We are proud of our school ethos and values which are strengthened by our links with the church. The school has close and strong relationships with our Church in Wales federation governors one of which is also our safeguarding governor.
“Our Church Federation governors work closely with the school and are regular visitors to the school and the children. They provide vital support and guidance to the school and have a positive impact on the Children’s education. We believe these links will be weakened by this proposal to remove our VC status and we believe this is an un-necessary action.”
The proposals for Cilgerran are part of a wide range of potential education changes in the county.
Two petitions, opposing the potential closures of Manorbier and Ysgol Clydau schools, were recently heard at full council and a further petition opposing the potential closure of Stepaside School has recently been launched, which has generated enough support to be heard at a future council meeting.
Crime
Welsh Lib Dems urge ministers to rethink rates relief for struggling pubs and cafés
Calls grow for Welsh Government to match support offered to English venues
THE WELSH LIBERAL DEMOCRATS have urged the Welsh Government to review its business rates policy, warning that scaling back support for pubs and hospitality risks further closures across towns and villages.
Party leader Jane Dodds, who represents Mid and West Wales in the Senedd Cymru, said ministers should act quickly to protect local venues after additional support for pubs and music venues was announced for England by the UK Government.
The measures announced by the Chancellor do not automatically apply in Wales, leaving uncertainty over whether similar help will be introduced here.
Hospitality businesses across Pembrokeshire and Carmarthenshire have already reported rising energy bills, higher wage costs and reduced footfall since the pandemic. From April, current business rates relief is expected to be reduced, a move the Liberal Democrats say could place Welsh firms at a disadvantage compared with competitors over the border.
Dodds said that pubs, cafés and restaurants form “the heart of our communities” and warned that withdrawing relief now would be “a serious mistake”.
She told the Senedd that support “cannot stop at pubs alone” and should extend to the wider hospitality sector, including restaurants and family venues that rely heavily on seasonal trade and tourism.
“When questioned, the First Minister said she needed to examine the details of the English package before committing to anything similar for Wales,” Dodds said. “Without urgent action, we risk losing viable, well-loved businesses that communities simply cannot afford to lose.”
The party is also calling for UK-wide action, including a temporary reduction in VAT for hospitality and tourism, funded by a windfall tax on large banks.
However, Welsh Government sources have previously argued that decisions on rates relief must be balanced against pressures on public finances, with ministers required to prioritise health, education and other frontline services within a fixed budget. They have said any additional support would need to be affordable and targeted.
Industry bodies have echoed concerns about the challenges facing the sector. Trade groups say many independent pubs and cafés continue to operate on tight margins, particularly in rural areas where they serve as community hubs as well as businesses.
Local operators say clarity is now key, with decisions on staffing, stock and opening hours often planned months in advance.
With the next financial year approaching, hospitality owners will be watching closely to see whether Wales mirrors England’s support – or leaves businesses to absorb the extra costs alone.
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