Politics
More empty properties in Pembrokeshire to pay 300 per cent council tax premium
WHILE the council tax premium for second homes in Pembrokeshire is dropping, the rate for many empty properties in the county is set to rise.
Second homes in Pembrokeshire, from the next financial year, have a council tax premium of 150 per cent above the standard rate, following an agreed reduction from a 200 per cent premium earlier this year; to take place in the next financial year.
Long-term empty properties in the county are also currently charged a premium council tax rate: 100 per cent after 24 months, 200 per cent after 36 months, rising to 300 per cent.
During the October decision to lower the second homes rate, the rate for empty properties was also discussed, with a proposal by Cllr Alan Dennison to change the empty property premium to 300 per cent after two years deferred to the December meeting of full council.
At the December 12 meeting, members heard a more simplified rate system for empty properties was being proposed, 300 per cent for properties empty more than two years, which was moved by Cabinet member for finance Cllr Joshua Beynon.
A report for members calculated this change would bring an extra £663,000 to council coffers in the next financial year.
The report added: “The long-term empty properties council tax premium contributed £1.67m to the elements of the council’s budget relating to affordable housing and enhancing the sustainability of local communities during 2024-25. Current projections are for £1.65m of this to be collected during 2024-25.
“Any reduction in the long-term empty properties council tax premium or the level used to contribute to elements of the council’s budget relating to affordable housing and enhancing the sustainability of local communities would result in a reduction in income and an increase in the pressures and funding gap for 2025-26.”
The proposal, which includes various discretionary exemptions, was one of several options in a report for members, including a 250 per cent rate after two years, which was moved by Cllr Dennison, who asked that applications for exemptions be looked at “sympathetically on a case-by-case basis.”
Voices of concern to the proposed increases were raised by both Cllr Mike Stoddart and Cllr Viv Stoddart, saying the current rates were “savage enough,” and “punitive”.
Cllr Viv Stoddart said there were many legitimate reasons why properties could be empty long-term.
However, other councillors, including David Bryan and Cllr Mike Williams agreed empty properties were a blight for neighbours, Cllr Williams raising the issuer of a property in Tenby which had been derelict for some 20 years, adding: “The legislation is totally inadequate, it must be 300 per cent.”
The 250 per cent rate amendment was defeated by 44 votes to 10; the 300 per cent rate passing by 44 votes to five.
Community
Councillor’s call to stop council tax court summons during December
A CALL for Pembrokeshire County Council to spread a little festive cheer by not issuing any court summonses for non-payment of council tax is to be considered by senior councillors.
A Notice of Motion by Independent group leader Cllr Huw Murphy, heard at the December 12 meeting of Pembrokeshire County Council, asks: “That PCC do not issue any summonses for appearance at magistrates court for non-payment of council tax during the month of December.”
It adds: “At a Corporate O&S meeting on November 14 it was disclosed that since April 2024 PCC have sent out 14,000 reminder letters with regards to council tax (late payment) and issued 4,000 summonses for non-payment of council tax, which clearly evidences the financial pressure many Pembrokeshire residents currently face.
“December is for many families a festive month and although the debt does not go away the avoidance of any prosecutions during the month of December in the lead up to the festive holiday will indicate some empathy by PCC towards its residents under most financial pressure.”
At the December 12 meeting, members agreed the call be sent to the county council’s Cabinet for further consideration.
Cllr Murphy is no stranger to festive cheer calls; last year asking for the council to overturn a “mean-spirited” decision to end the free collection of trees in Pembrokeshire after the festive season.
That 2023 ‘Christmas tree call-in’ motion, supported by councillors Vanessa Thomas, Anji Tinley, Alan Dennison, Elwyn Morse, Michael James and Iwan Ward, was defeated by nine votes to four.
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
Welsh Labour criticised for ‘failing thousands of families’ on childcare
THE WELSH GOVERNMENT’S draft budget has sparked debate, with the Welsh Liberal Democrats labelling it a “missed opportunity” for failing to deliver on childcare, while Labour officials defend their record on supporting families.
The Welsh Liberal Democrats have argued that the government missed a “golden opportunity” to support Welsh families during the ongoing cost-of-living crisis while delivering a boost to the Welsh economy. They claim that high childcare costs are forcing more parents out of work, and the extra £20 million allocated in the budget will only “paper over the cracks.”
The Liberal Democrats have proposed a universal offer of 30 hours of funded childcare per week for all children in Wales aged 9 months to 4 years. Welsh Liberal Democrat Leader Jane Dodds MS expressed disappointment, stating:
“Instead of taking this opportunity to steer Welsh families away from sky-rocketing childcare costs, the Welsh Government has instead left them to fend for themselves. Thousands of people from across Wales are being forced to make the difficult choice between paying out of pocket for childcare or leaving work.
This shouldn’t be the case. We want to see a universal offer of 30 hours of funded childcare per week for every single child in Wales between the ages of 9 months and 4 years old. By taking away the burden of childcare costs, we can help people get back into work, which will give our economy a huge boost.
The UK Labour Government has been talking about encouraging more economic growth, but it appears as though their colleagues in Cardiff Bay didn’t get the message.”
However, the Welsh Government has countered these claims, highlighting existing childcare support schemes and their broader efforts to ease financial pressures on families. A Welsh Government spokesperson said:
“Our government remains committed to supporting families across Wales. Our existing childcare offer provides up to 30 hours a week of funded childcare for working parents of 3- and 4-year-olds during term time, which we extended to include support during the school holidays.
In addition, we are investing £20 million to enhance childcare provision further, ensuring families who need it most can access support. We are continually working to develop policies that benefit Welsh families and strengthen our economy.”
The debate comes amid growing scrutiny of government policies as families grapple with the rising cost of living. Critics and supporters alike will be watching closely to see how the draft budget evolves and whether further measures are introduced to address childcare costs.
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