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Large Council Tax hikes while councils hold £2 billion in reserves

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Calls for Reform in Welsh Government Funding Formula

RESIDENTS across Wales are facing an average 7.36% increase in Council Tax for the 2025-26 financial year, despite councils holding more than £2 billion in usable reserves. The proposed hikes come amid concerns that the Welsh Labour Government’s Local Government Funding Formula is outdated, leading to significant disparities in funding between councils.

While councils argue that reserves are necessary for financial stability and future investment, critics say the current system places an unfair burden on taxpayers and fails to ensure efficient spending. Some councils are sitting on reserves exceeding £200 million, while others struggle to meet budget demands, raising questions about fairness and transparency in the funding model.

Funding formula concerns
The Welsh Local Government Funding Formula is under scrutiny, with critics highlighting that it still relies on population data from the 1990s. There are also concerns about uneven funding allocations, with some councils receiving significantly more per capita than their neighbours.

For example, Newport City Council receives £600 more per head than Monmouthshire County Council, despite both serving similar areas. Additionally, the funding formula assumes that the cost to a council of an 84-year-old resident is just £7.34, while an 85-year-old resident is assumed to cost over £2,243—a discrepancy that critics argue defies logic.

Welsh Conservative debate in the Senedd
The Welsh Conservatives are set to bring forward a debate in the Senedd next week, urging the Welsh Government to commission an independent review of the funding formula and work with councils to use reserves to ease the burden on taxpayers. The party is also calling for local referendums for any council proposing a tax rise above 5%.

Speaking ahead of the debate, Laura Anne Jones MS, Welsh Conservative Shadow Secretary for Housing and Local Government, said: “Under the Welsh Labour Government, the Local Government Funding Formula is broken. It cannot be right that people in Wales face a 7% hike in their Council Tax while councils sit on over £2 billion in reserves.

In the Senedd next week, we will be calling on the Welsh Labour Government to fix this system by commissioning an independent review and ensuring Council Tax is kept as low as possible.”

The debate motion
The motion to be debated next week includes the following points:

  • Recognising the essential role of councils in delivering public services and the funding challenges they face.
  • Noting that Welsh councils hold over £2 billion in reserves.
  • Expressing regret that the proposed Council Tax rise in Wales is 7.36% for 2025-26.
  • Calling on the Welsh Government to:
  • Review the Local Government Funding Formula to ensure fairer distribution of funding.
  • Encourage councils to use reserves to minimise Council Tax increases.
  • Introduce referendums for any Council Tax rise above 5%.
  • Reduce bureaucracy and increase efficiency in local government.
  • Promote cross-council collaboration to cut costs and improve services.
  • Foster a business-like approach to spending taxpayer money, reducing waste and unnecessary projects.

Council Perspective

Many local authorities defend their financial reserves, arguing that they are needed for unexpected costs, future investments, and financial stability. Some councils state that rising costs, particularly in social care and education, leave them little choice but to raise Council Tax.

A Welsh Government spokesperson previously stated that funding allocations are based on need and that councils are free to use reserves at their discretion. They argue that long-term financial planning is crucial, especially in times of economic uncertainty.

As the debate unfolds, the challenge remains striking a balance—ensuring councils have the funding they need while protecting residents from excessive tax increases.

 

Local Government

Milford Haven civic service marks start of mayoral year

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Mayor’s charities named as civic leaders gather at St Katharine and St Peter’s Church

THE CIVIC SERVICE of the Mayor of Milford Haven, Cllr Mark Woodward, took place at St Katharine and St Peter’s Church on Saturday (June 20).

The service marked Cllr Woodward’s election as Mayor and First Citizen of Milford Haven.

It was conducted by Rev Dr Adrian Furse and Canon John Cecil, with music from church organist Richard Stephens, Gelliswick Community Choir and Milford Haven Town Band.

Guides and Brownies, Milford Haven Sea Cadets and Royal Marines Cadets were also among those taking part, with councillors Colin Sharp and Yvonne Southwell acting as ushers.

Refreshments followed at Milford Haven Bowling Club.

Local MS Paul Davies was among those attending the service and wished the new mayor all the best for his term in office.

Cllr Woodward’s chosen charities for the year are Patch Charity and Greenacres Rescue.

Photo caption:

Civic guests attended the Mayor of Milford Haven’s service at St Katharine and St Peter’s Church on Saturday (Pic: Supplied)

 

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Charity

Toy Story fans fill charity toy box at Haverfordwest cinema

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Donations pour in for SNAP Specialist Play as families embrace Toy Story 5 launch

A TOY STORY-themed charity appeal at a Haverfordwest cinema has got off to a flying start, with families donating toys to support children with additional needs across Pembrokeshire.

The Palace Cinema has teamed up with local charity SNAP Specialist Play to collect new and pre-loved toys during screenings of the newly released Toy Story 5.

The appeal centres around an “Andy’s Toys” donation box, inspired by the beloved Pixar films, which has already been filled by generous filmgoers.

Toy Story magic: The Palace Cinema foyer has been transformed with themed decorations to celebrate the film’s release

Cinema manager Hannah Cramp said the response from the community had exceeded expectations.

Families attending opening screenings have arrived carrying bags of toys, with many children keen to share their own treasured items to help others.

The cinema has transformed its foyer into a colourful Toy Story-themed experience, complete with hand-painted decorations, character silhouettes, bunting and famous film slogans including “Reach for the Sky” and “To Infinity and Beyond”.

Many visitors have also embraced the spirit of the occasion by attending in costume as their favourite Toy Story characters.

Specialist support: SNAP’s sensory facilities help children with additional needs learn and develop through play

The toys are being donated to SNAP Specialist Play, a charity based within the Child Health Department at Withybush Hospital.

SNAP supports pre-school children with additional and complex needs through specialist play sessions designed to encourage communication, physical development and sensory learning.

Its facilities include sensory rooms, therapeutic play spaces and bespoke equipment used by speech and language therapists, occupational therapists and physiotherapists.

Project manager Cindy Jenkins said the charity was delighted by the partnership and grateful for the generosity shown by local families.

She said every toy donated would be put to good use, either during specialist play sessions, at family events, or through seasonal initiatives such as Christmas gift boxes for children and their siblings.

The appeal will continue until mid-July, with organisers hopeful that even more donations will be received over the coming weeks.

Anyone attending Toy Story 5 at the Palace Cinema is invited to bring along a new or good-quality pre-loved toy to support the appeal.

Toy Story magic: The Palace Cinema foyer has been transformed with themed decorations to celebrate the film’s release

Cover photo:

Fancy dress fun: Palace Cinema manager Hannah Cramp helping launch the Toy Story charity appeal.

 

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Health

Medicine shortages now ‘most severe on record’, health leaders warn

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PATIENTS are facing some of the worst medicine shortages ever seen in the UK, with pharmacists warning the situation now poses a serious risk to safety.

The National Pharmacy Association said shortages affecting commonly used medicines are becoming more frequent, lasting longer, and causing increasing disruption for patients, GP surgeries and pharmacies.

The warning comes as Serious Shortage Protocols for Creon, used by people with pancreatic cancer and cystic fibrosis to help digest food, have been in place since May 2024 and have now been extended until July 10, 2026.

HRT treatment Estradot has also been under a Serious Shortage Protocol since December 2024, with the current extension also running until July 10.

Patients travelling between pharmacies

A survey by the National Pharmacy Association found that 98 per cent of pharmacies had encountered patients who had visited several pharmacies in one day to find a prescription.

It also found that 96 per cent of pharmacies believed the current situation posed a serious risk to patient safety, while 89 per cent said they had been unable to dispense a medicine at least once a day because of supply problems.

Some pharmacy teams have also faced anger and abuse from patients unable to obtain medication.

Olivier Picard, Chair of the National Pharmacy Association, said: “Medicine shortages are becoming more frequent, lasting longer and causing increasing disruption for patients.

“These shortages are some of most severe the UK has experienced.

“It is deeply distressing to find patients who have travelled from pharmacy to pharmacy to find the medicines they need without success.”

Calls for urgent taskforce

The NPA is calling on the government to convene an emergency taskforce involving manufacturers, wholesalers, clinicians and pharmacists.

It also wants changes to rules which currently stop pharmacists from making simple substitutions, such as changing a tablet to a capsule or a cream to an ointment, even where a safe alternative is available.

Professor Victoria Tzortziou Brown, President of the Royal College of GPs, said medicine shortages were frustrating for patients, GPs and pharmacists, and added pressure to already stretched services.

She said the College supported pharmacists being able to make limited changes to prescriptions where a medicine is unavailable and a safe alternative exists.

She added: “The most important thing is that patients are able to access the medication they need safely and without delay.”

The Cystic Fibrosis Trust and Pancreatic Cancer UK have also raised concerns about the impact of shortages of pancreatic enzyme replacement therapy, including Creon, on people who rely on the medication to digest food, maintain weight and stay well enough for treatment.

 

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