Politics
Drakeford: Plaid Cymru faces ‘day of reckoning’ on draft budget
MARK DRAKEFORD warned Plaid Cymru will face a “day of reckoning” on whether to block the Welsh Government’s £26bn spending plans for next year.
Wales’ finance secretary laid down a challenge to Plaid Cymru after unveiling the Welsh Government’s 2025/26 draft budget which included an extra £1.5bn for public services.
Prof Drakeford said he remains open to talks with Plaid Cymru about how the budget can be improved, with Labour one seat short of the majority needed to pass its spending plans.
But, addressing opposition benches, he warned: “If that’s not the business you are in then, believe me, the people of Wales will see through you and the political games you think you can play with their future.”
He added: “There’s £253m for local government and when you vote against the budget, you will be saying to those local authorities that you don’t want them to have a single penny of it.
“That’s what serious politics is about … and that day of reckoning is coming your way.”
The cooperation agreement between the Welsh Government and Plaid Cymru collapsed in 2023, and the party has said it intends to vote against this year’s budget on March 4.
Leading a debate on December 10, the former First Minister told the Senedd the spending plans for the 12 months from April seek to protect the most vulnerable people in society.
He said: “It is a budget for priorities, it is a budget for growth, it is a budget that reminds people in Wales why, time after time, they have put their trust in a Labour government.
“A government which shares their values of trust, ambition, care for one another, and especially those who need that care the most. And that … is why this is a budget for hope, a budget which sets out on that path to deliver a brighter future.”

Peter Fox, the Conservatives’ shadow finance secretary, criticised Labour’s “tax-and-spend frenzy” and raised concerns economic growth could slow.
Mr Fox said: “Both Labour governments just don’t understand business,” as he described national insurance increases as a tax on growth and a broken manifesto pledge.
He rejected “fictitious” claims of a £22bn “blackhole” in the UK’s finances left by the Tories, adding that the Welsh budget has increased due to tax rises and vast amounts of borrowing.
Mr Fox welcomed an additional £253m for local government but cautioned it will still leave councils facing a “cliffedge” with financial pressures totalling £300m.
The former council leader said the Welsh Government has “finally seen sense”, agreeing to offer retail, hospitality and leisure businesses the same business rates relief as in England.
Heledd Fychan, for Plaid Cymru, warned the draft budget falls short of the funding Wales is owed following the lowest real-terms increase of all the devolved nations at 1.3%.
The party’s shadow finance secretary reiterated calls for billions from HS2 and replacement of the “outdated” Barnett formula with a fairer model based on population need.

Ms Fychan said: “Without this, it is clear despite the uplift many sectors will be left broken and uncertain about the future: cuts will still have to be made, council tax will have to rise and the backlog across the NHS will remain incredibly high.
“Yes, the investment is welcome but it is a drop in the ocean of what’s needed.”
Ms Fychan, who represents South Wales West, warned the budget will largely plug gaps created by Westminster and Labour mismanagement.
Labour’s Lee Waters said the opposition reaction “breeds cynicism in politics”, accusing the Conservatives of complaining about revenue raising plans while demanding more money.
Pointing to a need for cooperation, the former minister added: “Plaid Cymru have already said before they heard the budget that they would be voting against this budget. So, how is that seriously engaging with the constitutional reality that we’ve all embraced?”
Responding to the debate, Prof Drakeford said: “I understand the Conservative party – the problem for them is so do the people of Wales.”
Turning his ire to Ms Fychan’s depiction of £1.5bn extra as a “drop in the ocean”, he told the debating chamber or Siambr: “Well … some drop and some ocean.
“She too asked for more money for local government, more money for the arts, she referred, of course, to the sainted Scots. There is a day of reckoning coming for Plaid Cymru, though, isn’t there, on the budget?”
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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