News
Council tax to rise 9.75% for residents in Carmarthenshire
Plaid Cymru blames Welsh Government funding and NI hike
PLAID CYMRU on Carmarthenshire County Council has blamed inadequate Welsh Government funding and the Labour Chancellor’s National Insurance hike for creating a multi-million-pound shortfall in the council’s budget for 2025/26—forcing an increase in Council Tax of 9.75%.
Cabinet Member for Resources, Cllr Alun Lenny, said: “In my experience, this year is even worse than all those years of Tory austerity. Due to inflation, pay settlements, and growing demand, we needed an extra £55m to fund essential services like social care and education, but received just £25m in annual grants from the Labour Welsh Government. We’ve had to fill the gap with efficiencies and a far higher Council Tax rise than any of us would like.”
Cllr Lenny said only 16% of the council’s income comes from Council Tax, with each 1% rise generating £1m. He added that the council had initially anticipated a 4-5% rise, but the National Insurance changes introduced by Labour Chancellor Rachel Reeves would leave the council £4m out of pocket.

“The Labour Chancellor’s action has also hit local businesses hard, with lower-paid workers in retail and hospitality particularly worried about their jobs,” he said.
Cllr Lenny also criticised the disparity in UK Government funding, highlighting that councils in England are receiving extra money through the £4.7bn Local Transport Fund. He said Herefordshire—a county with a similar population and highways network to Carmarthenshire—was getting an extra £102m over the next seven years.
“That scale of spending on roads is something we can only dream about, and shows that we in Wales are the poor relatives when it comes to UK Government funding,” he said.
He also slammed Westminster’s refusal to allocate consequential funding from the HS2 railway development in England, stating that Plaid Cymru estimates Carmarthenshire’s share should be around £250m—enough to solve its budget issues overnight.
Why are council tax rises happening across Wales?
Carmarthenshire is not alone in facing a sharp increase in Council Tax, with many Welsh councils struggling to balance their budgets. Several key factors are driving these rises:
- Funding shortfalls for local authorities: Despite an additional £253m allocated to local councils in the Welsh Government’s draft budget, the Welsh Local Government Association has identified a shortfall of £560m. This leaves councils unable to meet rising demands without increasing taxes, cutting services, or making job reductions. For example, Wrexham Council is considering tax hikes of up to 15% to address these challenges.
- Inflation and service pressures: Councils are dealing with significant inflationary pressures and increased demand for public services, particularly in social care and education. These factors have exacerbated financial strains, forcing councils to consider tax increases to maintain service levels.
- Outdated tax system: Council tax in Wales is based on property values from 2003, making it increasingly outdated and regressive. This system creates disparities between councils and households, as property values and local needs have changed significantly over the last two decades.
- Delays in tax reforms: The Welsh Government had planned to reform council tax by revaluing properties and introducing new tax bands to make the system fairer. However, this has now been postponed until 2028, meaning councils must continue relying on an outdated system to generate revenue.
- Limited fiscal devolution: Welsh councils rely heavily on central government grants, restricting their ability to raise local revenue and adapt taxation to local needs. This dependency leaves them vulnerable to funding shortfalls when government grants fall short of rising costs.
Public concerns and Welsh Government response
Public opposition to rising Council Tax bills has been growing. A petition has been launched calling for Welsh councils to be limited to a maximum annual increase of 2% from April 2025. Meanwhile, Labour’s stance on Council Tax has shifted, with UK Labour ruling out changes to Council Tax bands. This contradicts the Welsh Labour government’s previous plans, creating a potential policy divide between Cardiff and Westminster.
A Welsh Government spokesperson said local authorities in Wales receive significantly more funding per capita than those in England and that difficult financial choices stem from wider economic factors, not just Labour policy.
A Welsh Labour source added: “We are committed to supporting councils, but the economic reality is that years of Tory austerity, inflationary pressures, and high interest rates have made local government funding more challenging.”
Carmarthenshire Council’s position
Despite financial pressures, Carmarthenshire County Council has committed to continued investment in education, housing, and adult and children’s services. Following public consultation, the council has scrapped plans to close public toilets unless asset transferred, will only increase car parking charges in line with inflation, and will invest more in highways, gully cleaning, and flood prevention.
As the Welsh Government finalises its budget, Plaid Cymru has pledged to lobby for fairer funding up until the last moment.
Crime
Hakin man’s appeal delayed again as Crown Court seeks guidance on insurance law
Judge gives CPS more time to review latest road traffic law guidance before case returns in March
A HAKIN man’s appeal against a conviction for driving without insurance has been delayed after a judge granted prosecutors additional time to review updated legal guidance.
Seventy-six-year-old Niall Taylor, of Haven Drive, appeared at Swansea Crown Court on Tuesday (Jan 13) for a mention hearing in his case.
Taylor has accepted the finding that he drove otherwise than in accordance with a licence, but is challenging the separate conviction for using a vehicle without insurance.
The case relates to an incident on January 18, 2023, when he drove a Vauxhall Zafira along Hammond Avenue, Haverfordwest.
The matter has already followed an unusual procedural history. Taylor initially pleaded not guilty in the magistrates’ court but later changed his plea during the original trial. Questions were subsequently raised over whether that plea had been “equivocal”, leading the case to be reopened under Section 142 of the Magistrates’ Courts Act 1980 and reheard in full.
Following a trial of the facts, magistrates found him guilty and imposed sentence in December. Taylor has since lodged an appeal focused solely on the insurance offence.
During Tuesday’s hearing, His Honour Judge Walters granted the Crown Prosecution Service 28 days to review Wilkinson’s Road Traffic Offences (32nd Edition), the leading legal reference text used by courts in motoring cases.
Addressing the court, the judge said the matter may still require further consideration, adding: “The court still might want to reconsider the sentence even if the insurance company is right. It does look as if different insurance companies do things in different ways.”
He added: “It is not in fact void, but it is voidable.”
Taylor maintains that a valid insurance policy was in force at the time of driving and argues that, in law, third-party cover cannot simply be cancelled because of an administrative licensing issue.
The appeal is due to return to Swansea Crown Court on March 27, when further legal argument is expected.
Business
Pub rate relief welcomed but closures still feared
CAMRA warns one-year discount is only a sticking plaster as many Welsh locals face rising bills
A BUSINESS rates discount for Welsh pubs has been welcomed as a step in the right direction — but campaigners warn it will not be enough to stop more locals from shutting their doors.
The Campaign for Real Ale (CAMRA) says the Welsh Government’s decision to offer a 15 per cent reduction on business rates bills for the coming year will provide short-term breathing space for struggling publicans.
However, it believes the move fails to tackle deeper problems in the rating system that continue to pile pressure on community pubs across Wales, including in Pembrokeshire and Carmarthenshire.
Chris Charters, Director of CAMRA Wales, said: “Today’s announcement from the Finance Secretary that pubs will get 15% discount on their business rates bills is a welcome step.
“However, many pubs still face big hikes in their bills due to the rates revaluation which could still lead to more of our locals in Wales being forced to close for good.
“15% off for a year is only the start of supporting pubs with business rates. It won’t fix the unfair business rates system our pubs are being crushed by.”
He added: “Welsh publicans need a permanent solution, or doors will continue to close and communities will be shut away from these essential social hubs that help tackle loneliness and isolation.”
Mounting pressure on locals
Under plans announced by the Welsh Government, pubs will receive a temporary discount on their rates bills for the next financial year.
But CAMRA argues that many premises are simultaneously facing sharp increases following the latest revaluation, which recalculates rateable values based on property size and trading potential.
For some smaller, rural venues, especially those already operating on tight margins, the increases could wipe out the benefit of the relief entirely.
Publicans say they are also contending with rising energy costs, higher wages, supplier price hikes and changing customer habits since the pandemic.
In west Wales, several long-standing village pubs have either reduced their opening hours or put their businesses on the market in the past year, with landlords warning that overheads are becoming unsustainable.
Community role
Campaigners stress that the issue goes beyond beer sales.
Pubs are often described as the last remaining social spaces in small communities — hosting charity events, sports teams, live music and local groups.
In parts of rural Pembrokeshire, a pub can be the only public meeting place left after the loss of shops, banks and post offices.
CAMRA says supermarkets and online retailers enjoy structural advantages that traditional pubs cannot match, making it harder for locals to compete on price.
The organisation is now calling on ministers to introduce a permanently lower business rates multiplier for pubs, rather than relying on short-term discounts.
Long-term reform call
CAMRA wants whoever forms the next Welsh administration to commit to fundamental reform of the rating system, arguing that pubs should be recognised as community assets rather than treated like large commercial premises.
Without change, it warns, the number of closures is likely to accelerate.
Charters said: “This is about protecting the future of our locals. Once a pub shuts, it rarely reopens. We can’t afford to lose any more.”
For many communities across west Wales, the fear is simple: temporary relief may buy time — but it may not be enough to save the local.
Local Government
Council tax rise options to be debated by Cabinet
Leader signals support for lower increase as schools set for £4.7m boost
PEMBROKESHIRE COUNTY COUNCIL’S Cabinet will next week consider how much residents will be asked to pay in Council Tax as part of the authority’s 2026–27 budget setting process.
Members of Pembrokeshire County Council will meet on Monday (Feb 9) to examine two proposed options: a 4.6 per cent increase, equivalent to £1.46 per week for a Band D property, or a 7.5 per cent rise, equal to £2.38 per week.
Council leader Jon Harvey said the authority aimed to keep any rise as low as possible while protecting frontline services.
“In setting this year’s budget it’s our intention to ask the least possible from tax paying residents while still providing the vital services they rely upon,” he said.
He added that he expects Cabinet to favour the lower increase when it makes its recommendation to full council.
Mr Harvey said the lower option would still allow the authority to safeguard services and provide “significantly more money” for schools, with an additional £4.7 million earmarked for education.
He also highlighted the need for further investment in highways, building maintenance and street cleaning teams.
“We know these services are important to residents and so we intend to prioritise them,” he said.
The leader said the financial pressures created by the pandemic, rising costs and increasing demand for social care had led to unavoidable tax increases in recent years.
However, he added: “Going forward, I am very aware we cannot keep asking residents to pay significantly more and it is our intention to get back to Council Tax increases that are broadly in line with inflation.”
The Cabinet meeting starts at 10:00am and will be broadcast live via the council’s usual webcast platform.
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