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Drakeford: Plaid Cymru faces ‘day of reckoning’ on draft budget

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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.”

Conservative MS Peter Fox
Conservative MS Peter Fox

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.

Plaid Cymru MS Heledd Fychan
Plaid Cymru MS Heledd Fychan

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?”

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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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