Politics
Welsh public bodies ‘could be shortchanged on NI hike’

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.

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.

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.
News
New £1m fund to boost Welsh tourism come rain or shine

A NEW £1 million fund will help ensure that tourism attractions across Wales can welcome visitors whatever the weather.
The ‘Year of Croeso Weather-Proofing Fund’ is being launched as Visit Wales celebrates the unique Welsh welcome that draws visitors back time and again.
The fund will provide grants of between £5,000 and £20,000 to eligible businesses, supporting them to implement weather-proofing measures.
Tourism is a major contributor to the Welsh economy, injecting £3.8 billion each year, and showcasing the wide range of experiences Wales has to offer — come rain or shine.
However, recent data from Visit Wales showed that poor weather was cited by 55% of businesses as the main reason for fewer visitors during summer 2024, ranking even ahead of cost-of-living pressures. Similarly, the Domestic Sentiment Tracker survey identified poor UK weather as the top factor discouraging domestic breaks.
Grants could be used for a variety of improvements, including canopies, sustainable drainage systems, covered seating areas, visitor shelters, and enhanced pathways and car park surfaces.
Announcing the fund, Cabinet Secretary for Tourism, Rebecca Evans said:
“Wales has an incredibly strong tourism offer and visitors can always be guaranteed a warm croeso.
But the weather — which has shaped our stunning landscapes — is becoming increasingly unpredictable and is now identified as the single biggest factor affecting visitor numbers to Welsh attractions.
Poor weather can impact normal operations, harm visitor experience, and even discourage visits altogether.
That’s why we have listened to the concerns of the tourism sector and launched this fund — to help attractions prepare for increasingly variable weather patterns.”
The Welsh Government’s tourism strategy, ‘Welcome to Wales: Priorities for the Visitor Economy 2020–25’, highlights the importance of tackling seasonality by promoting Wales as a year-round destination.
Welsh Government support for the sector in the coming financial year includes:
Visit Wales: Over £9 million revenue budget and £6 million capital budget
A £50 million Wales Tourism Investment Fund
A £5 million Brilliant Basics Fund
The Cabinet Secretary added:
“All visitors, wherever they come from, will find a destination delivering an outstanding experience — and we are always working to build on and improve Wales’ tourism offer.
These grants will help tourism attractions become more resilient, extend their seasons, and enhance the visitor experience — benefiting both businesses and the wider Welsh economy.”
Business
First Minister under fire over ‘betrayal’ of steel workers

WALES’ First Minister came under fire over the Labour UK Government’s decision to step in to save Scunthorpe steelworks after failing to do the same in Port Talbot.
Eluned Morgan stressed the two steelworks were in different situations after UK ministers took control of the Chinese-owned British Steel site in Scunthorpe this month.
Giving a statement on April 29, she told the Senedd: “The situation … was very different not only in terms of the global context but also … the relationship and intention of Tata Steel.”
Baroness Morgan rejected “never credible” suggestions the Labour UK Government should have persuaded Tata to reopen a deal initially negotiated by Conservative ministers.
On calls to take control of the Port Talbot plant, the First Minister said: “That would have been unrealistic and unworkable because of the opposition from Tata.”
Baroness Morgan added: “It would have led to prolonged legal conflict with the company, to the possible accelerated shut down of the remaining blast furnace and Tata could have withdrawn its contribution of £700m to the construction of the electric arc furnace.”
The Labour politician said construction of the electric arc furnace would begin this summer, with green steel set to provide a more sustainable and brighter future.
But Darren Millar, whose request for the Senedd to be recalled from Easter recess to discuss the issue was rejected, questioned the differing approaches in Wales and England.

The leader of the Conservative Senedd group said: “People are upset, understandably, and furious about the fact there seems to be a completely different attitude towards Welsh steel.”
He claimed Labour MPs “promised the earth” to steelworkers before last year’s general election only to U-turn on pledges which turned out to be “complete works of fiction”.
The First Minister claimed Tory UK ministers would not pick up the phone to her predecessor, saying she has pressed Labour colleagues to ringfence part of the £2.5bn fund for Wales.
Plaid Cymru leader Rhun ap Iorwerth criticised the First Minister for “mocking” his party’s calls for nationalisation of the Port Talbot steelworks.

“A pipedream she called it patronisingly, which has become something of a trade for this First Minister,” he said, accusing Labour of blatant double standards at Wales’ expense.
Claiming Labour has abandoned workers, he told Senedd Members: “After this betrayal, we need cast-iron assurances that the UK Government’s investment in Scunthorpe in no way compromises the promises made to Port Talbot.”
Baroness Morgan said: “It always fascinates me that nationalists want to nationalise but they want England to pay … this week you want to nationalise steel, last week … Holyhead port.”
Labour’s Mike Hedges, a former steelworker, backed the First Minister: “This is not a battle between Port Talbot and Scunthorpe even though some people are trying to make it such.”
Welsh Lib Dem leader Jane Dodds said: “The UK’s emergency action confirmed what many of us here in Wales had feared: that our workers are second-class citizens.”

Baroness Morgan, who met steelworkers in Port Talbot on Friday, pledged to “move heaven and earth” to secure the future of Welsh steel through a “fair and just transition”.
News
Pembrokeshire community transport service in funding boost

FUNDING of more than £213,000 for a Pembrokeshire community transport charity group, which supports some of the county’s most vulnerable residents, has been backed by senior councillors.
At the April 28 meeting of Pembrokeshire County Council’s Cabinet members were asked to continue offering financial support to Pembrokeshire Association of Community Transport Organisations (PACTO) to support their work to develop and support community transport services in Pembrokeshire over the next five years.
The current funding arrangement with PACTO, of £175,968 over a five-year period, came to an end on March 31.
It was recommended to award a five-year grant at a cost of £40,170 in 2025/26 (£213,268 over five years, including an annual inflationary increase estimated at three per cent.
Over the past five years, PACTO accounts show the council £175,968 core funding has enabled it to secure a total income of £1,439,205.
PACTO is currently in the second year of a major three-year project funded through the Motability Foundation, valued at £1 million.
In a report presented by Cabinet Member for Residents’ Services Cllr Rhys Sinnett, who described PACTO as “the glue that knits community transport providers together,” members heard local registered charity PACTO supports and represents the Pembrokeshire’s community transport sector, run by the third sector on a not-for-profit basis to support some of our most vulnerable residents.
“Community transport services in Pembrokeshire currently provide around 50,000 passenger journeys each year, helping to fill gaps in the public transport network, support community groups with their transport needs and assist elderly, disabled and other vulnerable people who struggle to access mainstream public transport,” the report said.
It added: “PACTO does not directly operate community transport services. Its role is to provide support to community transport operators to improve and extend the services they offer, to work with communities and community groups towards addressing unmet transport needs, and to provide information and advice to service users about the services that may be able to assist them.
“Pembrokeshire County Council has provided core funding to PACTO since 2004. The funding has enabled PACTO to provide a range of support and development activities.”
It said the withdrawal of funding could lead to the risk of a loss of many of the services supported, as well as a knock-on effect on council budgets through some of the services enabled.
Cllr Sinnett said, of the option of withdrawing funding: Whilst it would save that £40,000 it would leave us very vulnerable to either stepping in in support of our community transport providers with our limited staff time,” adding: “And PACTO do things we can’t do.”
Members unanimously backed the award.
PACTO, on its website, describes its services as: “Pembrokeshire’s Community Transport services help people and groups who don’t have access to their own transport and who don’t have or can’t use conventional public transport services.”
Local services
Local services provided by third sector operators and community groups include the following.
Royal Voluntary Service, who run the Pembrokeshire Country Car service.
Green Dragon Community Transport, who run dial-a-ride and town rider minibus services across the county and operate wheelchair accessible cars.
Pembrokeshire Voluntary Transport, who operate the Fflecsi service in north west Pembrokeshire and provide wheelchair accessible minibuses and cars for community groups and disabled individuals.
Narberth and District Community and Sports Association, who operate the Bloomfield Dial-a-Bus services for villages around Narberth.
Manorbier Community Transport, who provide a community minibus for local community groups.
VC Gallery, who use a community minibus and car to help service users access their projects and activities.
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