Community
Welsh council chiefs call for minimum funding increase to prevent bankruptcy risk

COUNCIL chiefs called for a minimum 4% increase in funding for each local authority and three-year settlements to avert the risk of a Welsh council going bust.
Andrew Morgan, leader of Rhondda Cynon Taf council, warned of “extreme” budget pressures as he appeared before the Senedd’s finance committee on January 15.
He welcomed a £253m uplift in the overall settlement from the Welsh Government but contrasted the increase against a £559m funding gap in the 12 months from April.
He said: “Clearly, the figures show it actually only meets about half of the actual demand for the coming 12 months, so there is going to be significant pressure on local authorities.”
Cllr Morgan, who is leader of the Welsh Local Government Association, the collective voice of Wales’ 22 councils, added: “It is increasingly difficult to be able to explain to the public that we’ve put council tax up while still reducing services.”
He told the committee: “When it comes to council tax, most local authorities are in the range of 5% or upwards for budget planning at least at this stage.
“We are acutely aware of the pressure on local residents in terms of the cost of living, so it is a real dilemma for local authorities.”
Pressed on whether any councils in Wales could issue section 114 (bankruptcy) notices, Cllr Morgan said: “I certainly don’t think there will be any risk of 114 notices in the coming year but that’s not to say that there isn’t a risk there in the medium to long term.”
Asked about Audit Wales’ warning that councils are financially unsustainable, Cllr Morgan called for a three-year settlement to allow planning beyond a 12-month cycle.
He said: “Welsh Government comes out with a provisional settlement in December, that only gives us ten or 12 weeks for us to line up all our ducks in terms of making budgets add up – that’s what’s not sustainable, I would suggest.”
Anthony Hunt, leader of Torfaen council, described the challenge next year as “orders of magnitude different” due to a better-than-expected settlement from the Welsh Government.
He said: “There will be schools that retain staff, there will be services that can be maintained.”
Cllr Hunt told the committee a flat budget or 1% increase, as first feared, would have had “unthinkable” consequences, with “massive” service cuts and redundancies across Wales.
With councils receiving increases ranging from 2.6% to 5.6%, he made the case for a 4% floor which would be funded from outside the settlement at a cost of about £13m.
He emphasised that the 22 principal councils will never be happy with the wider funding formula because there will always be winners and losers.
Lis Burnett, leader of Vale of Glamorgan council, raised the example of hospital discharges.
She said: “I think we’re probably one of the best in Wales now that we can actually get a care package sorted out for people to go home within approximately three days.
“That has been of great benefit to the health board but it basically means that we’re £10m overspent in our social care.”
Turning to education, Cllr Burnett said: “We’re having to be very, very careful in terms of how we rationalise spending for education. The demands, and the complexity of demand, have gone up exponentially – particularly since the pandemic.”
She said her council was “lowest funded by a long way” in terms of education, adding that there is an appetite for reform of the funding formula.
Nia Jeffreys, leader of Gwynedd council, said her local authority has cut £74m over the past decade, nearly a quarter of its day-to-day revenue budget.
Warning of no easy choices, Cllr Jeffreys told the committee: “The efficiency savings have been made already and we’re in a situation now where we’re looking at real-terms cuts … that means stopping doing things and halting services that people rely upon.”
She said Gwynedd and other councils in north Wales are looking at increasing council tax by 8% to 9%, placing a burden on families already struggling with a cost-of-living crisis.
Cllr Jeffreys echoed calls for an “absolutely vital” funding floor, pointing to additional costs of delivering public services in more rural areas.
Asked about increases in employer national insurance contributions, she put the cost to Gwynedd council at about £4.5m.
Cllr Hunt said councils have been assured that they will be given money towards the cost of the rise for directly employed staff.
He stressed: “That national insurance rise is one of the reasons why there’s more money now for public service organisations. And I think we need to be a bit careful not to welcome funding but complain about where it’s come from – it needs to come from somewhere.”
Cllr Morgan said the biggest concern is the money to cover the cost being “Barnettised” (i.e. based on spending in England) which could leave Welsh councils short.
He told the committee education and social care now make up about 70% of all council budgets, suggesting only so much “tinkering” can be done within the other 30%.
He raised concerns about the “eye-watering” costs of children’s care to councils, with some specialist placements costing a five-figure sum each week for every child.
Community
Port’s support for library already ‘many hundreds of thousands of pounds’

THE PORT OF MILFORD HAVEN has confirmed that it is providing “significant financial support” to Milford Haven Library, with its total contribution over the lifetime of Pembrokeshire County Council’s lease agreement until 2038 amounting to “many hundreds of thousands of pounds.”
The statement follows public frustration over secrecy surrounding the rent paid by PCC, with officials previously refusing to disclose the figure. Pembrokeshire County Council has now confirmed that the rent stands at £1,921 per month, or £23,052 per year, which accounts for 17.6% of the library’s total running costs.
At a Milford Haven Town Council meeting last week, PCC’s Head of Cultural Services, Mike Cavanagh, stated that he had been asked by the Port not to disclose the rental figure, leading to accusations of a lack of transparency over public spending on a statutory service.
Port responds to criticism

In response to the controversy, Tom Sawyer, chief executive at the Port of Milford Haven, told The Herald: “We have always recognised the significant social value generated by the Library in Milford Haven. It is a true community hub providing vital services and opportunities for people of all ages.”
Sawyer confirmed that the Port had committed to financial support long before PCC’s recent cost-cutting review, stating: “Prior to this public consultation, we had already committed to provide significant financial support to the Library service which, over the lifetime of Pembrokeshire County Council’s lease agreement up to 2038, amounts to many hundreds of thousands of pounds.”
While the Port remains engaged in discussions with PCC and Milford Haven Town Council, Sawyer stressed the broader role of the Port in community funding.
“Each year we set aside around 10% of our annual profits to support organisations, either through direct funding or partnership working, that are delivering three core outcomes: a safe and enjoyable Waterway; a sustainable and resilient environment; and a vibrant and prosperous community. We are proud that due to the Port of Milford Haven’s financial sustainability we will provide almost half a million pounds of community benefit during 2025.”
Despite this, some councillors remain concerned about the decision to charge PCC rent for a statutory service, particularly given the Port’s obligations as a Trust Port to benefit the local community.
Council defends library consultation process

A spokesperson for Pembrokeshire County Council said: “The Library Service, along with other Council services, has been asked to put forward proposals to reduce costs and/or increase income.”
PCC explained that its 2024 Library Needs Assessment had shown that while respondents opposed outright library closures, there was support for reducing premises costs and increasing volunteer involvement.
“Over the last 16 years, Milford Haven residents have enjoyed high-quality library provision in the town at Cedar Court, during which time the Port of Milford Haven has been extremely supportive, and we are grateful for their ongoing support.”
The spokesperson further revealed that the Port has been providing a “markedly discounted” rental rate for the library, stating:
“Recognising the important community role the library plays, the Port of Milford Haven has discounted the rental amount to £1,921 per month, which is significantly lower than its demonstrable commercial value. The rent is currently 17.6% of total running costs.”
Library could still be moved
Despite confirming the discounted rent, PCC has reiterated that it is considering relocating the library to a smaller or cheaper site to ensure its long-term viability. This includes a proposal to move the library to the Meads Leisure Centre, as well as the possibility of transitioning to a Community Managed Partnership.
“The County Council hopes to be able to sustain this high-quality service during these financially challenging times and solutions are currently being sought through the consultation process and ongoing discussions with interested parties.”
PCC has urged Milford Haven Library users and local residents to participate in the consultation, which is open until Monday, February 17.
The consultation can be accessed at: https://www.pembrokeshire.gov.uk/have-your-say/proposed-changes-to-the-library-service.
Councillors discuss library future at town council meeting

The Milford Haven Town Council discussed the future of the library at their full council meeting on Monday, February 10. During the meeting, councillors debated the potential relocation of the library and the request for the town council to contribute £13,000 towards its running costs.

Councillor Lee Bridges suggested an alternative location, proposing that the library could be moved to the old Town Hall, which is owned by accountant Bruce Evens. He argued that a more central location could provide a better long-term solution.
Meanwhile, Councillor Colin Sharp raised concerns that the Port, as a Trust Port with a duty to benefit the community, should have done more to support the library’s future.
“Have you spoken to the landlord? It’s going to look like very bad press for that company, which is allegedly a community organisation, if the library can no longer operate.”
However, Councillor Nicola Harteveld defended the Port’s position. She said: “The Port are a business and can’t be expected to give the library to the town for free, as they already do a lot for the town.”
The council has not yet made a decision on providing funding, but a final vote on whether Milford Haven Town Council will contribute £13,000 to the library is scheduled for their next meeting on February 24.
What happens next?
- Milford Haven Town Council will vote on February 24 on whether to contribute £13,000 to help fund the library for another year.
- The public consultation closes on February 17, after which PCC will review feedback before making a final decision.
The future of Milford Haven Library remains uncertain, with councillors, residents, and campaigners continuing to push for clarity and a long-term solution.
This is a developing story. The Herald will provide further updates as discussions continue.
Community
Haverfordwest road remains closed after water main burst

A MAJOR road in Haverfordwest will remain closed after a water main burst today (Thursday, Feb 13).
The incident occurred on Shipman’s Lane, prompting an emergency road closure.
Welsh Water confirmed that the road is expected to reopen tomorrow (Feb 14).
A spokesperson said: “Customer supplies were not affected during the work to repair the burst main at Shipman’s Lane in Haverfordwest.
“Due to the location of the burst, a road closure was necessary, and we hope to reopen the road by tomorrow.”
(Image: File)
Community
Christmas council tax amnesty considered in Pembrokeshire

WHILE the bleak February winds blow across the land ahead of hopefully better weather in Spring, senior Pembrokeshire councillors discussed a Christmas festive cheer call earlier this week.
A Notice of Motion by Independent group leader Cllr Huw Murphy, before the February meeting of Pembrokeshire County Council’s Cabinet asked: “That PCC do not issue any summonses for appearance at magistrates court for non-payment of council tax during the month of December.”
It added: “At a Corporate O&S meeting on November 14 [2024] 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.”
A report for Cabinet members said the court issues the council with four weekly hearing dates approximately six months in advance, and Revenue Services does not hold council tax liability order court hearings in December as the pre-allocated dates would mean the hearing could fall close to Christmas Day.
It added that, to meet regulatory timescales, summonses are issued in late November and early December to ensure all documents are correctly served ready for a court hearing in January.
Members were recommended to retain the current practice to issue summonses in November/early December for the court hearing in January.
The report said, as of October 1 of last year, the council had council tax arrears of £7.512m, an improvement from the £8.384m at March 31, with a risk that not issuing any December summonses “would lead to a delay in the recovery of council tax arrears and a subsequent increase in council tax arrears”.
At the February Cabinet meeting, members heard Cllr Murphy was happy to either accept the recommendation or withdraw his motion having received the additional information.
Members agreed to support the recommendation.
Cllr Murphy is no stranger to festive cheer calls; in 2023 asking for the council to overturn a “mean-spirited” decision to end the free collection of trees in Pembrokeshire after Christmas.
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.
-
Business3 days ago
Digital marketing challenges for rural Welsh businesses
-
Community7 days ago
National triumph: Pembrokeshire pub ranked among the friendliest in UK
-
Education6 days ago
Excluding pupils for knives ‘too simple’, says Estyn chief
-
News6 days ago
Threatening email revealed: Why Neyland’s clerk missed controversial meeting
-
News3 days ago
Police report filed over Neyland Town Council email controversy
-
News7 days ago
Cat stuck in Pembroke Dock tree for days sparks local rescue effort
-
Health3 days ago
Emergency care failing in Wales, warns damming report
-
Business7 days ago
Key Pembrokeshire aerospace employer set to expand