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Welsh public bodies ‘could be shortchanged on NI hike’

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PUBLIC bodies in Wales may not receive full compensation from the UK Government for the cost of employer national insurance increases unlike in England, a committee heard.

Mark Drakeford told the Senedd’s finance committee the cost of workers within the Office for National Statistics definition of a public sector employee will be covered by the UK treasury.

Andrew Jeffreys, director of the Welsh treasury, explained the UK Government plans to use the Barnett formula to decide how much Wales will receive based on the costs in England.

But Prof Drakeford said: “That’s not my position … if public authorities in England are getting 100% compensation then public authorities in Wales should have 100%.

“The Barnett share may turn out to be less than we need in Wales.

“That would seem to me fundamentally unfair if English public authorities know they’re getting everything covered and in Wales we’re left filling gaps.”

He added: “If things worked out in the way we just described where Wales doesn’t have full cover but English public authorities do …, I won’t simply be leaving it there.”

Peredur Owen Griffiths, who chairs the committee, raised a warning from Ynys Môn council of a “gaping hole” in the budget that leaves local authorities facing an existential crisis.

Peredur Owen Griffiths at the Senedd on December 7, 2021
South Wales East’s Plaid Cymru MS Peredur Owen Griffiths

He said councils could be put in an invidious position of having to balance books, potentially making jobs redundant, in the interim before clarity on compensation in May or June.

Pointing to the example of extra cash from UK pay deals, Prof Drakeford stated ministers took a risk-based decision to plan for the funding coming to Wales despite some uncertainty.

He told the committee: “I think local authorities will want to do that. They will look to see the ONS definition … and make assumptions against that. I equally think there will be organisations who … will need to plan on the basis they won’t get help from the treasury.”

Prof Drakeford, who was appointed finance secretary in September, said he would be loath to use money that comes to Wales to “substitute for responsibilities held elsewhere”.

Giving evidence after unveiling his £26bn draft budget, including a £6bn planned settlement for councils in 2025/26, Prof Drakeford said local government funding will increase by 4.3%.

The former First Minister told Senedd Members headline figures on how much funding each council receives often disguise the fact some are doing well on a per-head basis.

Prof Drakeford said he would look if anything more can be done to assist councils at the bottom end before the final budget is published on February 25.

He said the mission has not simply been to restore the position before wide-ranging cuts across almost every Welsh Government department were announced in October 2023.

He told the committee: “I’ve resisted with my colleagues suggestions that what we should be doing with the money we’ve got available next year is go back and fill the holes that we had to create in order to make this year’s budget viable.”

Pressed about tough decisions he has had to make, Prof Drakeford said: “There’s very little in this budget where people have had to deprioritise …. Last year we were using that term to denote the fact we were having to cut budgets, there’s very little of that in this budget.”

He suggested he would have liked to have allocated more than an extra £20m for childcare due to pressures to raise the hourly rate for providers and extend the Flying Start scheme.

Conservative Peter Fox questioned whether enough funding would be provided to the NHS in the draft budget to tackle the record 618,000 people in Wales on waiting lists.

Conservative MS Peter Fox
Conservative MS Peter Fox

Prof Drakeford replied: “There’s no ceiling here where you could say ‘well, the health service has now got everything it needs’ because there is always more demand…. I am satisfied that there is adequate funding … to make inroads into those waiting lists.”

Mike Hedges asked for an update on introducing a vacant land tax after talks with the Tory UK Government on devolving powers requested nearly five years ago broke down.

Prof Drakeford told his Labour colleague plans for a vacant land tax had completely stalled but he had a positive meeting with James Murray, exchequer secretary to the UK treasury.

He said he was given a commitment to revisit the proposal which aims to test arrangements set out in the 2014 Wales Act to devolve powers for new taxes to Wales.

Pressed about talks with the UK treasury on the Welsh Government’s borrowing powers and flexibility with reserves, Prof Drakeford warned the issue becomes more pressing every year.

He said if capital borrowing continues at the current rate of £150m a year, the Welsh Government will hit the £1bn cap during the next Senedd term from 2026.

 

Business

New facilities at Haverfordwest Target Shooting Club agreed

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A CALL by a Pembrokeshire shooting club for more disability-friendly facilities has been given the go-ahead by county planners.

In an application to Pembrokeshire County Council, Haverfordwest Target Shooting Club, through agent Andrew Sutton Architecture, sought permission for an extension to existing target shooting club building at The Firing Range, Withybush Road, Haverfordwest to improve accessibility and internal facilities, together with associated landscaping works.

A supporting statement said: “The club’s own published history states it was founded in 1968, moved from the Drill Hall to the old wartime airfield butts at Withybush by the early 1970s, and had developed facilities over time, including the clubhouse by 1999. The established leisure/community use has existed on the site for a number of years and the proposal does not seek to intensify the core activity beyond that already authorised/established.”

It added: “The primary objective of the scheme is to improve inclusive access to the club’s facilities for disabled users and those with reduced mobility. The internal arrangement will provide adequate entrance and lobby space, clear accessible routes and appropriately designed sanitary accommodation, including an accessible wetroom/shower and separate WC.”

It also said accessible parking and surfacing designed to provide a firm, even, slip-resistant route from parking to the principal entrance.

It added: “The Equality Act 2010 places duties on service providers to make reasonable adjustments so that people with additional access needs are not placed at a substantial disadvantage.

“The proposal is therefore a positive enhancement to a community/leisure facility and supports wider policy objectives for inclusive environments.”

It went on to say: “The club operates within a highly controlled environment, and the proposed works will maintain and enhance safety and security measures.”

The application was conditionally approved by planners.

 

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News

Watchdog criticises health board over £10m GP contract checks

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A HEALTH board has been criticised by Audit Wales after GP contracts worth more than £10m were awarded without sufficient due diligence checks.

Aneurin Bevan University Health Board allowed a GP partnership associated with eHarley Street Primary Care Solutions to take on eight GP contracts in south-east Wales, with a combined annual value of around £10.1m.

Audit Wales said the board should have carried out greater scrutiny before approving the arrangements, including checks on financial resilience, workforce plans, business risks and the partnership’s ability to manage several practices at once.

However, the watchdog found no evidence of fraud and noted the board was dealing with significant pressure in general practice, including vacant contracts and limited interest from other bidders.

The report said weaknesses in governance and scrutiny contributed to later disruption and uncertainty for patients and staff when problems emerged.

Concerns included financial and workforce pressures, unpaid invoices, and issues relating to tax and pension payments. Some contracts were later handed back, requiring the health board to step in to protect services.

Natasha Asghar MS, Welsh Conservative Shadow Cabinet Minister for Health and Social Care, said the findings were “deeply concerning”.

She said: “Patients and staff were left facing disruption and uncertainty because proper scrutiny was not carried out before these contracts were awarded.

“The Welsh Conservatives believe lessons must be learned to ensure robust checks are in place, protect frontline services and restore confidence in primary care across Wales.”

Aneurin Bevan University Health Board accepted the recommendations and said it had already strengthened its processes.

Audit Wales said the case highlighted the need for stronger checks before GP contracts are transferred, particularly when a single partnership is taking on multiple practices in a short period.

 

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News

Welsh Conservatives demand clarity over EHRC guidance in schools

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THE WELSH CONSERVATIVES have called on the Welsh Government to clarify whether new Equality and Human Rights Commission guidance will be implemented in schools across Wales.

Shadow education minister Sam Rowlands MS has written to Cabinet Minister for Education and the Welsh Language Anna Brychan MS following the UK Supreme Court ruling on the Equality Act.

Mr Rowlands said schools, teachers, governors and parents needed clear answers on how the guidance would apply in practice, including on single-sex spaces, safeguarding, changing facilities and sports participation.

He said: “Parents, teachers and pupils deserve clarity from the Welsh Government.

“Schools cannot be left in limbo while ministers avoid making a decision on such an important safeguarding and legal issue.

“The Equality Act applies in Wales, and schools now need clear guidance on what this means in practice.”

In his letter, Mr Rowlands asks whether updated guidance will be issued to schools in Wales, whether schools will be expected to amend existing policies, and what advice will be given to headteachers on safeguarding and compliance with the Equality Act.

He also asks whether the Welsh Government intends to diverge from the approach set out by the EHRC.

The letter says schools and parents require “clear and consistent guidance” to ensure the rights, dignity and safety of all pupils are respected.

 

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