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Extra £1.5bn for public services as Welsh Government unveils spending plans

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THE WELSH Government has unveiled its spending plans for next year with an additional £1.5bn allocated to public services, including an extra £610m for health and social care.

Mark Drakeford announced all government departments will receive increases in day-to-day revenue and longer-term capital funding, marking a departure from last year’s cuts.

Wales’ finance secretary described the £26bn draft budget as offering an opportunity to rebuild and reinvigorate public services after 14 difficult years.

He said: “This is a budget for a brighter future, delivering an extra £1.5bn for our public services and priorities, helping to put Wales firmly back on the path of growth….

“This is in stark contrast to the last couple of years when we have been forced to make some very difficult and painful decisions.”

The ex-First Minister added: “This is a good budget for Wales. But it will take time to reverse the damage inflicted on Wales over 14 years of neglect from previous UK administrations.”

The draft budget includes an extra £610m for health and social services, £186m to improve rail services, including the core valleys lines, and £81m to build more social housing for rent.

Councils will receive a 4.3% increase in the local government settlement.

The increases by department are as follows:

  • Health: 3.8% revenue, 30% capital
  • Housing and local government: 5.4% revenue, 11.2% capital
  • Education: 4.9% revenue, 8.1% capital
  • Transport: 12% revenue, 10.7% capital
  • Climate change and rural affairs: 6.6% revenue, 31% capital
  • Economy, energy and planning: 4.3% revenue, 59.1% capital
  • Social justice: 4.7% revenue, 23% capital
  • Central services and administration: 7.4% revenue, 47% capital

Welsh rates of income tax will remain unchanged, with taxpayers continuing to pay the same rates as in England and Northern Ireland.

chart visualization

However, the Welsh Government announced that higher residential rates of land transaction tax – Wales’ equivalent of stamp duty – will increase by 1%, raising an extra £7m.

The standard rate of landfill disposal tax will also rise to reduce waste and boost recycling.

The big question is how the Welsh Government will pass its budget, with parliamentary arithmetic in the Senedd on a knife-edge and Labour one seat short of a majority.

First Minister Eluned Morgan

Eluned Morgan, who has warned Wales could lose out on £1bn if opposition parties do not support the spending plans, will need to cut a deal with at least one opposition member.

Previous budgets have been passed with the help of Plaid Cymru, Liberal Democrat and independent Senedd Members, with a deal with the Conservatives seeming unlikely.

Plaid Cymru backed the Welsh Government’s budget in recent years in return for 46 commitments but the cooperation deal between the two collapsed in October 2023.

The First Minister could also reach out to Jane Dodds, the Lib Dems’ leader in Wales and the party’s sole Senedd Member, or Rhys ab Owen, who sits as an independent.

Jane Dodds or Rhys ab Owen could play a role in helping the Welsh Government get its budget plans passed
Jane Dodds or Rhys ab Owen could play a role in helping the Welsh Government get its budget plans passed

Senedd Members need to agree a motion on Welsh rates of income tax (Writ), which are forecast to raise about £3.3bn in 2025/26, before the budget can be passed.

Writ defaults to zero if a motion cannot be passed, meaning basic, higher and additional rates would decrease by 10p in the £1 for Welsh taxpayers.

If the annual budget motion is not agreed by the start of the financial year in April, the budget of the Welsh Government would revert to 75% of the previous year’s.

This would also affect directly funded bodies such as the Senedd, Public Services Ombudsman, Wales Audit Office and the Electoral Commission.

If a motion is still not agreed by the end of July, the budget rises to 95%.

Mark Drakeford will lead a debate on the draft budget in the debating chamber or Siambr, which will be broadcast live on Senedd.TV from about 2.50pm today.

He will also appear before the Welsh Parliament’s finance committee on Thursday morning to face questions about the spending plans for the 12 months from April.

Senedd Members will then scrutinise the draft budget through December and January.

Committees will take evidence from witnesses including the Office for Budget Responsibility, Institute for Fiscal Studies, Wales Fiscal Analysis, Bevan Foundation and Citizens’ Advice.

Based on this evidence, committees will publish scrutiny reports by February 3.

A further debate on the draft budget will be held the following day, with the final budget set to be published on February 25 and a crunch vote to follow on March 4.

Navigating this year’s budget process will be a key test for Wales’ new First Minister, with the next Senedd election looming in less than 18 months in May 2026.

News

Council Tax Premium set to increase for long-term empty properties

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PEMBROKESHIRE COUNTY COUNCIL has approved a significant change to the council tax premium on long-term empty properties, aiming to address housing shortages and community impacts.

Starting April 1, 2025, a single premium rate of 300 per cent will be applied to all properties that have been empty for two years or more. This replaces the previous system of incremental increases.

Councillor Joshua Beynon, cabinet member for corporate finance and efficiencies, said:
“The premium is in place to encourage the return of properties into use as much-needed homes in Pembrokeshire and to reduce the impact of empty homes on the communities around them.”

Details of the premium

The premium is an addition to the standard council tax charge and applies across all three elements:

  • Pembrokeshire County Council
  • Police and Crime Commissioner
  • Town and Community Councils

Exemptions and discounts

Property owners undergoing renovations can apply for a council tax exemption if their property requires major repair works or structural alterations. This exemption allows the property to be tax-free for up to 12 months.

If the exemption has already been granted, owners may apply for a discretionary discount, which can be awarded up to the value of the long-term empty property premium. However, the standard council tax charge remains payable in these cases.

Applicants must provide written details of the required works, supported by photographic evidence. Each application is assessed on its individual merits, and the discretionary discount is typically limited to a maximum of 12 months.

National Empty Homes Grant Scheme

Pembrokeshire County Council is also taking part in the National Empty Homes Grant Scheme, which offers grants of up to £25,000 to owners of eligible empty properties. This funding aims to bring more properties back into use and alleviate housing pressures in the county.

For more information about the grant, visit the National Empty Homes Grant website.
To apply for a council tax discount, contact Revenue Services via:

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News

Petition demanding resignation of Neyland councillor sparks public outcry

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A PETITION demanding the immediate resignation of Neyland Town Councillor Mike Harry has taken centre stage ahead of an extraordinary council meeting scheduled for Thursday, January 16. The petition, started by Nicholas Wilson, accuses Cllr Harry of breaching the council’s code of conduct by making derogatory remarks about constituents in an email circulated to all town councillors.

In the email, Cllr Harry referred to some constituents as “degenerates” and “cronies from the Foresters bar,” remarks that have been labelled offensive and unbecoming of a public representative. The petition has gathered momentum in Neyland, with supporters calling for accountability and demanding higher standards from their councillors. “This kind of language and attitude has no place in our town council,” one petitioner commented.

First meeting since october 2024

The extraordinary meeting marks the first official gathering of Neyland Town Council since October 2024, after months of internal conflict and public disputes among councillors. It will take place at 6:00pm in the Viewing Gallery of Neyland Community Hub, a change from the usual venue due to a Labour Party quiz occupying the main meeting rooms. However, the relocation means there will be no audio-visual support for the meeting.

The agenda for the meeting is notably sparse, with a single item for discussion: council finance, specifically the budget and precept for 2025/26. Despite the narrow focus of the agenda, the meeting is expected to be overshadowed by the ongoing controversy surrounding Cllr Harry and the fallout from his remarks.

Escalating internal tensions

The controversy stems from an email in which Cllr Harry expressed frustration over disputes with colleagues and constituents. In the email, he dismissed critics as an “irrelevant minority” and accused them of spreading “garbage.” He also took aim at a former councillor, claiming they had resigned over a prejudicial interest relating to the construction of the Neyland Community Hub.

These comments have ignited outrage among residents, some of whom are now questioning the culture within the council. The petition has called for Cllr Harry’s removal, arguing that his remarks damage public trust in the council’s ability to serve the community.

Public divisions and Ombudsman’s investigation

Cllr Harry has defended his actions, stating that he is awaiting a decision from the Ombudsman regarding ongoing disputes. He maintains that the allegations against him are unfounded and insists that his comments have been taken out of context.

While his supporters argue that the email reflects frustration amid a difficult period for the council, critics believe the remarks highlight deeper issues within Neyland Town Council. The council has been mired in internal disputes for months, resulting in delays and cancellations of meetings, further fuelling dissatisfaction among residents.

Neyland watches closely

With tensions running high, the upcoming meeting is expected to draw significant public interest. Whether the petition will prompt immediate action or further divide the council remains to be seen. For now, the focus of the meeting is set to be council finances, but the controversy surrounding Cllr Harry is unlikely to be ignored.

The Herald will provide updates on this developing story as the situation unfolds.

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News

Ambitious Pembrokeshire wildlife centre plans approved

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PLANS to modernise the Welsh Wildlife Centre near Cardigan with a new public entrance and a raft of other works which will make it more accessible to all have been approved Pembrokeshire County Council.

The Wildlife Trust of South & West Wales sought permission for a long list of changes at the Welsh Wildlife Centre, Cilgerran, including an extension to the visitor centre building and associated works, with a new public entrance, a new pathway connection, reconfiguration of the vehicle turning area and disabled parking bays, a replacement footbridge, and the introduction of ‘Brise Soleil’ to the south and west.

A supporting statement, by Childs Sulzmann Architects, said: “The visitor centre was built in the 1990s with an award-winning concept design. However, the usability of the building and some elements of its condition have deteriorated over the years, requiring modernisation.

“In particular, access to the visitor centre for people on the approach to the building is confusing and unclear, with external entrance doors provided at each side of the building. For instance, visitors can often be found in the offices on the lower ground floor level by mistake, whilst looking for the shop or café which are provided on the upper floors.”

The Welsh Wildlife Centre welcomes an average of 70,000 visitors per year, the statement saying: “This important local facility and visitor attraction will be enhanced and improved, by providing a clear and legible single entrance to the building, together with re-configured accessible parking bays and a platform lift for wheelchair users and ambulant disabled people to directly access the new public entrance.

“Further improvements to accessibility, which include the new external stairway to the open terrace and public entrance, the widened replacement footbridge and the connecting path to link the accessible parking area with the main footpath to the visitor centre, will contribute to the principles of promoting and providing access for all.”

Plans for a new play area at the Welsh Wildlife Centre near Cardigan were recently approved by Pembrokeshire County Council.

The latest proposals were conditionally approved by county planners.

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