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Pembrokeshire council tax could increase by 16 per cent

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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.

News

Senedd debates UK Government’s ‘disastrous’ first six months

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THE CONSERVATIVES criticised the UK Government’s record six months on from the general election, accusing Labour of doing “not a dickie bird” to stand up for Wales.

Darren Millar, leader of the Tories in the Senedd, said people were told Labour governments at both ends of the M4 would be great for Wales in the run up to July’s election.

But he warned: “What we’ve actually ended up with is a double whammy: broken promises and failing policies … alongside a passive, silent Labour Welsh Government unwilling to offer a squeak of criticism or lift a finger to defend the interests of the people of Wales.”

Leading a Tory debate, he said the new UK Government has hit farmers with inheritance tax, taken winter fuel allowance from pensioners and hiked national insurance for businesses. 

Mr Millar told the Senedd that Welsh railways remain underfunded as he accused Labour of settling for “scraps” despite previously calling for billions of pounds from HS2.

Peter Fox, the Tory shadow rural affairs secretary, warned farmers have to deal with Labour governments “who either do not care or do not understand the needs of rural communities”. 

Mr Fox, a farmer and former council leader who represented Monmouth since 2021, criticised changes to agricultural property relief by the UK Government.

“It’s not a loophole,” he said. “It’s a carefully designed policy … to protect Britain’s family farms from being broken up.”

His colleague Natasha Asghar, who represents South Wales East, described a -45% approval rating for Keir Starmer’s government as “a tad generous”.

She said: “If this is just what the first six months of Sir Keir’s premiership look like, I sincerely dread to imagine what the next six months have in store for all of us.”

Mark Drakeford said the Conservative motion in front of the Senedd concentrated entirely on matters outside the Welsh Parliament’s responsibility.

Following the debate on January 15, Senedd members voted 26-24 against the motion with Labour’s amended version agreed by the same margin.

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Welsh Government ‘in the dark’ on £109m tax rise cash

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THE WELSH GOVERNMENT remains in the dark about how much Wales will receive to cover the estimated £109m cost of tax rises in the public sector, a committee heard.

Jayne Bryant said the UK Government has confirmed it will provide funding to public-sector employers towards the increased cost of national insurance contributions from April.

But Wales’ local government secretary said ministers expect to receive additional funding in ‘late spring’ and have not yet received confirmation of how much Wales will receive.

Plaid Cymru’s Siân Gwenllian raised concerns about the impact of tax hikes as the Senedd’s local government committee scrutinised Welsh ministers’ 2025/26 spending plans.

Judith Cole, deputy director of council finance policy, said the Welsh Government estimates the cost of the tax hike to the public sector in Wales at £109m.

Asked how funding will be divided between councils, Ms Cole said the standard funding formula could be used or it may be based on a proportion of spending as in England.

But she stressed that other factors need to be taken into account because, for example, some councils will provide more services by directly employed staff.

Reg Kilpatrick, director of local government, added: “We’re entirely dependent on the negotiations between the cabinet secretary for finance and the UK treasury.”

Ms Gwenllian warned of the impact of tax hikes on the voluntary sector and outsourced services, piling more pressure on council budgets.

She said: “I’ve spoken with three councils … but one said that this will cost an additional £2m in terms of internal salaries but £2.5m in terms of the work that is commissioned.

“Another council said £5.4m on the internal, £2.8m on the work that is outsourced – another said £8m internal and £3m on the outsourced work. There is a lot of work commissioned beyond the local authorities themselves and there is no mention of any support.”

Giving evidence on January 15, Ms Bryant said the UK Government has confirmed it will use the Office for National Statistics definition of a public sector worker.

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Candidates for Haverfordwest’s Prendergast Ward council seat

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A SIX-WAY battle to contest a Pembrokeshire seat made vacant following the resignation of local county councillor Andrew Edwards during the Christmas period is to take place next month.

Unaffiliated county councillor for Haverfordwest’s Prendergast Ward Cllr Edwards had previously been a Conservative group member, leaving in 2023 when serious allegations of racist ‘slave’ comments emerged, following a recording where he was alleged to have said every white man should have a black slave.

Following that allegation Mr Edwards, a former magistrate and a school governor, withdrew from the political group and referred himself to the Ombudsman for an independent evaluation.

Cllr Edwards, who became a councillor in the 2022 elections, neither confirmed nor denied the allegation when previously asked by the Local Democracy Reporting Service.

Since then, Cllr Edwards has tendered his resignation over the Christmas 2024 period saying his position is “untenable” due to “family matters”.

Following Mr Edwards’ resignation, notice was given by Chief Executive William Bramble of a casual vacancy for the county councillor position for the ward, and six candidates have thrown their names into the hat to represent the ward, the election to take place on February 11.

The candidates are: Kaleb Jenkins, Liberal Democrats; Mike Mathias, Conservative; James Purchase, Green Party; Scott Thorley, Reform; Alison Tudor, Labour; and Alun Wills, Independent, with further nominations now closed.

Poll Cards will be sent to electors before the election. The polling station will be at Pembrokeshire Archives, not Meadow Park Day Centre as has been previously used in recent years.

Photographic ID will not be required to vote at this election.

Applications to register to vote must reach the Electoral Registration Officer by 12 midnight on January 24; applications to vote by post or alterations to existing arrangements for postal voting, must reach the Electoral Registration Officer by no later than 5pm on January 27.

Applications to vote by proxy must reach Electoral Registration Officer by no later than 5pm on the February 3.

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