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Huge £100m boost for public services in new budget agreement

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THE WELSH GOVERNMENT has unveiled a budget agreement securing over £100 million in additional funding for public services, with key investments directed at childcare, social care, local councils, transport, and the environment. The deal, reached with Jane Dodds MS, Leader of the Welsh Liberal Democrats, aims to bolster essential services, particularly in rural areas, and address pressing social and infrastructure concerns.

Key investments in the Final Budget 2025-26

The budget agreement, published on February 20 in the Senedd, details major funding allocations, including:

Support for early years education and childcare

  • An additional £30 million has been allocated to expand the Flying Start programme, providing free childcare for two-year-olds across Wales.
  • The hourly funding rate for childcare providers will rise from the previously proposed £6 per hour to £6.40 per hour, helping to support sustainability in the sector.
  • The move follows concerns raised by the National Day Nurseries Association (NDNA) Cymru, which found that 89% of nurseries surveyed believed the previous rate was insufficient to cover rising operational costs.

NDNA Cymru Chief Executive Purnima Tanuku CBE welcomed the increase, saying: “This new deal is a step in the right direction and shows that the Welsh Government is committed to supporting providers who deliver vital early years places.”

Social care and hospital discharges

  • £30 million will be allocated to social care services, aiming to reduce delayed hospital discharges and provide greater support within local communities. The funding is expected to alleviate pressures on the NHS by preventing unnecessary hospital admissions and improving community care services.

Local government and community investment

  • A guaranteed 3.8% funding floor for all local authorities, costing £8.24 million, will benefit nine councils: Monmouthshire, Powys, Gwynedd, Vale of Glamorgan, Flintshire, Pembrokeshire, Ynys Môn, Ceredigion, and Conwy.
  • £5 million has been set aside to enhance playgrounds and play facilities for children across Wales.
  • £5 million will support leisure centres in becoming more energy efficient, addressing rising energy costs and sustainability concerns.

Transport and infrastructure upgrades

  • A £15 million pilot scheme will allow young people aged 21 and under to pay just £1 per single bus fare to encourage greater public transport use and affordability.
  • Extra funding will contribute to a £120 million local authority road and pavement repair scheme, tackling maintenance issues on Wales’ road network.
  • Funding has also been secured to restore the fifth train service on the Heart of Wales line.
  • £500,000 in capital funding will be allocated to improve toilet facilities along major roads across Wales.

Environmental and rural development measures

  • £5 million will be used to combat water pollution in rivers and coastal areas.
  • An extra £10 million has been allocated to support rural investment schemes, benefitting agricultural and environmental projects across Wales.
  • A commitment has also been made to move towards a ban on greyhound racing in Wales, addressing concerns over animal welfare.

Additional community and cultural investments

The budget agreement also includes funding for feasibility studies to support several community projects, including:

  • The development of the Wyeside Arts Centre in Builth Wells.
  • The North Powys Wellbeing Campus in Newtown.
  • Safety measures at the Pont y Bat junction on the A470.
  • The refurbishment of Brynamman Lido.

Government and opposition responses

Cabinet Secretary for Finance Mark Drakeford praised the agreement, saying: “This demonstrates what can be achieved when the Welsh Government and Members of the Senedd work together constructively on areas where we have common ground. The additional investment will make a real difference to communities across Wales, particularly in rural areas.”

Jane Dodds MS, Leader of the Welsh Liberal Democrats, also welcomed the agreement, highlighting the benefits for families and local services. She stated: “I’m delighted we have secured the funds needed to deliver my party’s key priorities, including improving social care, increasing quality childcare, tackling water pollution, improving roads and public transport, and protecting vital council-run services.”

While the additional funding has been widely welcomed, some sectors argue that the increases may still fall short of covering rising costs. Early years providers stress that while the increase to £6.40 per hour is a positive move, further long-term investment is needed to ensure sustainability.

Similarly, concerns remain regarding ongoing pressures on the NHS and social care, as well as the state of Welsh roads, which have been in need of substantial repairs for years.

The Welsh Government maintains that this budget provides a strong foundation to address these challenges while working within financial constraints. However, it remains to be seen whether these measures will be enough to meet the growing demands of public services across Wales.

The Final Budget 2025-26 will now be debated in the Senedd before being officially passed into law.

News

Amber weather warning as ‘danger to life’ rain set to hit Pembrokeshire

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Dyfed-Powys Police and council teams prepare as Monday deluge expected

COMMUNITIES across Pembrokeshire are being urged to brace for severe weather after the Met Office issued an amber “danger to life” warning for heavy rain, covering the county from 4:00am to 9:00pm on Monday (Dec 15).

Up to 80mm of rain is expected widely, with 100mm possible on higher ground in north Pembrokeshire and the Preseli foothills. With rivers already running high following weeks of persistent wet weather, Natural Resources Wales says there is a heightened risk of flooding in low-lying areas, including parts of Haverfordwest, Remington Bridge, Merlin’s Bridge, Tenby, Neyland and along the Western Cleddau.

Travel disruption likely

The Met Office warns that fast-flowing or deep floodwater could pose a danger to life, with road flooding likely on key Pembrokeshire routes such as the A40, A487 and A478. Bus and rail services may face disruption.

Dyfed-Powys Police said officers would be monitoring known flood hotspots throughout Monday and urged drivers to avoid non-essential travel during the worst of the downpours.

A police spokesperson said: “Please plan ahead. Do not risk driving through floodwater. Conditions may change very quickly.”

Yellow warnings already in place

A yellow rain warning is active for southwest Wales from midnight tonight (Sun 14 Dec). A separate yellow warning for mid and north Wales began this afternoon.

Pembrokeshire County Council said its highways and emergency planning teams are on standby, with extra staff monitoring river gauges and drainage across the county. Sandbags are available where required.

Residents urged to prepare

Natural Resources Wales is advising residents in flood-prone areas to take precautions today, including:

  • Checking local flood alerts
  • Moving valuables upstairs where possible
  • Securing outdoor items against strong winds
  • Checking on vulnerable neighbours

The Herald understands that emergency services expect the heaviest rainfall between 6:00am and 3:00pm on Monday, with further unsettled weather forecast later in the week.

More updates to follow

This is a developing story. The Pembrokeshire Herald will bring live updates as information comes in from the Met Office, NRW, PCC and emergency services.

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Health

Major investment confirmed for GP services in Wales

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Government unveils £41m boost, but practices warn pressures remain acute

MORE than £41m in extra funding will go into general practice in Wales this year following a new agreement between the Welsh Government, NHS Wales and GP leaders. Ministers say the deal provides stability at a time of rising demand — but the settlement comes against a backdrop of sustained pressures, recruitment challenges and concerns over patient access.

The package includes a 4% uplift to the General Medical Services (GMS) contract for 2025-26, in line with independent DDRB pay recommendations, and a guaranteed 5.8% recurrent uplift from 2026-27. The Welsh Government says the multi-year commitment will allow practices to plan ahead, modernise systems and strengthen community-based services.

Health Secretary Jeremy Miles said the investment showed an “unwavering commitment” to general practice, adding: “The 4% pay uplift ensures fair recognition for GPs and practice staff who work tirelessly to deliver care for communities across our country. Multi-year funding gives practices the confidence to invest in the transformation primary care needs.”

However, the announcement comes at a time when many Welsh practices continue to report severe workforce pressures, rising demand, and longstanding challenges in recruiting new partners. GP numbers have fallen over the past decade, with some practices handing back contracts or operating list closures because of unsustainable workloads. Patient satisfaction with access has also declined, according to the latest Welsh GP Patient Survey.

What the deal includes

The settlement for 2025-26 comprises £37.9m of new investment and £4m in re-invested capacity funding, with the key elements including:

  • A 1.77% uplift in expenses, intended to help practices manage inflationary pressures in energy, staffing and running costs.
  • A recurrent £20m stabilisation fund to support practices facing immediate operational pressures and to prepare for wider reform under the incoming Sustainable Farming Scheme model for health.
  • An increased partnership premium, aimed at retaining experienced GPs and encouraging new partners into a model that some say has become less attractive due to financial and regulatory risk.
  • A full review of the GMS allocation formula — the first in more than 20 years — which determines how funding is distributed between practices. Some rural and deprived communities have long argued the current system does not reflect the complexity of local health needs.

Wider context

General practice remains the foundation of the NHS, accounting for around 90% of patient contacts, yet it receives a proportionally small share of the overall health budget compared with hospital services. Both the Welsh NHS Confederation and GPC Wales have repeatedly warned that without sustained investment, primary care risks being unable to meet increasing demand from ageing populations and rising chronic illness.

The Welsh Government’s own “community-by-design” programme relies on shifting more care closer to home, reducing pressure on emergency departments and supporting earlier intervention. For that to be achieved, GP leaders say investment needs to be matched with workforce expansion, improved digital systems, and clear strategies to retain experienced clinicians.

Working groups will now be set up to examine access standards, diabetes prevention and new service models.

Mr Miles said he was pleased that GPs would be “actively contributing to creating innovative care models that enhance access, improve outcomes and deliver care locally.”

GP representatives broadly welcomed the deal but have stressed that it is only one step in addressing the scale of challenge across primary care.

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Community

Narbelles WI support Food Bank with festive donation

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Group marks December meeting with charity collection and Christmas celebrations

NARBELLES WI rounded off the year with a festive December meeting featuring a bring-and-share buffet, party games and a Secret Santa gift exchange.

Members also used the occasion to support families in need across the county, collecting food items and presenting a £120 cheque to Ann Watling from Pembrokeshire Food Bank. The donation represents the proceeds of the group’s bucket collection during Narberth Civic Week 2024.

A spokesperson for the WI said the group was delighted to finish the year “with fun, friendship and a chance to give something back to the community.”

(Photo: Narbelles WI members presenting the cheque to Ann Watling, Pembrokeshire Food Bank.)

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