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Politics

Senedd rejects Conservative calls for £660m tax cuts

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SENEDD members voted down Conservative calls to cut taxes for 1.7 million people in Wales.

Sam Rowlands said his party would use devolved tax powers to put more money back into people’s pockets, saying the average working family would be £450 a year better off as a result.

The shadow finance secretary explained the Conservatives would cut the basic rate of income tax by 1p, with people paying 19% in the £12,571 to £50,270 band.

The Tory motion also called on the Welsh Government to restore tax relief for the hospitality sector to 75% and abolish business rates altogether for small companies.

Mr Rowlands told the Senedd: “We believe people up and down Wales know how to spend their money better than the government does.”

Plaid Cymru MS Heledd Fychan
Plaid Cymru MS Heledd Fychan

But Heledd Fychan, Plaid Cymru’s shadow finance secretary, warned deep cuts to public services would be needed to find almost £300m for such an income tax cut.

She said: “Unfortunately, although we have bidden farewell to the Tories from 10 Downing Street, any hope for change with the arrival of a Labour government has also been dashed.

“The pledges of no additional taxes on working people and no more austerity have been utterly demolished by their actions.”

Labour’s Mike Hedges argued: “Taxation is the price we pay for being part of a civilised society. We cannot have Scandinavian-quality public services and American levels of taxes.”

He added: “It’s not by random chance or serendipity that those countries with the highest tax levels have the best public services, and those with the lowest tax levels are the poorest.”

Finance secretary Mark Drakeford began by referencing Winston Churchill’s response when asked about the message voters had given the Conservatives by booting them out in 1945.

“He replied by saying he thought the electorate had said to the Conservative Party it needed to be a very long time before they heard from them again,” the finance secretary said.

Finance secretary Mark Drakeford

“That was good advice in 1945 and it’s very good advice 80 years later.

“If there’s any topic on which the Welsh public was entitled to a period of silence from the Conservative Party, then surely it was the economy. Because here is a party that gave the people of Wales austerity, … Brexit, the party that raised taxes to a 70-year high.”

Prof Drakeford told the Senedd the Tory motion would cost the public purse £660m in total.

“We heard the pretence that all that money… can be found from waste,” he said. “The last refuge of any economic scoundrel, it seems to me, that idea.”

The former first minister rejected the notion of closing overseas offices as he made a case for inward investment and economic growth.

He said: “The other idea I heard was that it was to come from the Heads of the Valleys road… there is no saving at all to be made from that bright idea.”

“Instead, the money will have to come from social services for older people, services for children in care, support for bus services, cuts to childcare and to colleges, cuts to support for businesses, cuts to housing support and homelessness services.

“There is no way at all – in the real world of government – that the budget consequences of this motion could be accommodated without harm.”

Prof Drakeford urged members to “vote to put the original motion out of its misery”.

Conservative MS Darren Millar
Conservative MS Darren Millar

Darren Millar, leader of the Tory opposition, hit back, saying: “Well, as entertaining as they are, I will take no lectures from Professor Drakeford.”

Replying to the debate on May 14, he accused Labour of trashing the economy: “We’ve got taxes going up, unemployment going up, growth going down, new jobs tax, new inheritance taxes for people to pay, new tourism taxes on the way and massive hikes in council tax.”

Mr Millar warned taxpayers are getting increasingly less in return, with cuts to bin collections, libraries and public toilets as well as more potholes and litter on the streets.

“It is totally unacceptable and that’s why we need to see a change,” he said. “I am proud to say I’m a Conservative because I believe in low taxation, unlike the parties on the left whose instinct is to tax anything that moves or anything that thrives and to choke the life out of it.”

Senedd members voted 33-12 against the Tory motion before the Welsh Government’s “delete all” amended version was agreed, 23-13 with nine abstaining.

 

Crime

Welsh Lib Dems urge ministers to rethink rates relief for struggling pubs and cafés

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Calls grow for Welsh Government to match support offered to English venues

THE WELSH LIBERAL DEMOCRATS have urged the Welsh Government to review its business rates policy, warning that scaling back support for pubs and hospitality risks further closures across towns and villages.

Party leader Jane Dodds, who represents Mid and West Wales in the Senedd Cymru, said ministers should act quickly to protect local venues after additional support for pubs and music venues was announced for England by the UK Government.

The measures announced by the Chancellor do not automatically apply in Wales, leaving uncertainty over whether similar help will be introduced here.

Hospitality businesses across Pembrokeshire and Carmarthenshire have already reported rising energy bills, higher wage costs and reduced footfall since the pandemic. From April, current business rates relief is expected to be reduced, a move the Liberal Democrats say could place Welsh firms at a disadvantage compared with competitors over the border.

Dodds said that pubs, cafés and restaurants form “the heart of our communities” and warned that withdrawing relief now would be “a serious mistake”.

She told the Senedd that support “cannot stop at pubs alone” and should extend to the wider hospitality sector, including restaurants and family venues that rely heavily on seasonal trade and tourism.

“When questioned, the First Minister said she needed to examine the details of the English package before committing to anything similar for Wales,” Dodds said. “Without urgent action, we risk losing viable, well-loved businesses that communities simply cannot afford to lose.”

The party is also calling for UK-wide action, including a temporary reduction in VAT for hospitality and tourism, funded by a windfall tax on large banks.

However, Welsh Government sources have previously argued that decisions on rates relief must be balanced against pressures on public finances, with ministers required to prioritise health, education and other frontline services within a fixed budget. They have said any additional support would need to be affordable and targeted.

Industry bodies have echoed concerns about the challenges facing the sector. Trade groups say many independent pubs and cafés continue to operate on tight margins, particularly in rural areas where they serve as community hubs as well as businesses.

Local operators say clarity is now key, with decisions on staffing, stock and opening hours often planned months in advance.

With the next financial year approaching, hospitality owners will be watching closely to see whether Wales mirrors England’s support – or leaves businesses to absorb the extra costs alone.

 

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international news

Mandelson quits Labour over Epstein controversy

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Former cabinet minister says stepping down is ‘in best interests of the party’ as questions raised over historic payments

LORD MANDLESON has resigned his membership of the Labour Party, saying he does not want to cause “further embarrassment” following renewed controversy over his past links to convicted sex offender Jeffrey Epstein.

The former cabinet minister and one-time UK ambassador to the United States confirmed his decision in a letter to Labour’s general secretary after fresh documents released by the US Department of Justice appeared to reference him in connection with Epstein’s finances.

The files suggest that three payments of $25,000 — totalling $75,000, about £55,000 at today’s exchange rates — were allegedly made to Peter Mandelson in 2003 and 2004.

Lord Mandelson said he had “no record or recollection” of the transactions and believes the allegations may be false, but intends to investigate the matter himself.

In his resignation letter, he wrote that he felt “regretful and sorry” to be linked again to what he described as the “understandable furore” surrounding Epstein.

He added that stepping down from party membership was the responsible course of action while he reviewed the claims.

“I do not wish to cause further embarrassment to the Labour Party,” he said. “I have dedicated my life to the values and success of the party and believe I am acting in its best interests.”

Ambassador role ended

Lord Mandelson had been appointed the UK’s ambassador to Washington by Prime Minister Keir Starmer in December 2024.

However, he was removed from the post last year after earlier revelations about his past friendship and contact with Epstein, including emails showing communication after the financier’s 2008 conviction.

The latest release of files has also included photographs said to show Lord Mandelson alongside an unidentified woman. He said he could not place the location or circumstances of the images.

There is no suggestion that appearing in the documents or photographs indicates criminal wrongdoing.

‘Deep regret’

Earlier this weekend, Lord Mandelson reiterated his regret for ever having known Epstein and apologised “unequivocally” to the women and girls who suffered abuse.

“I want to repeat my apology to the women and girls whose voices should have been heard long before now,” he said.

Epstein died in prison in 2019 while awaiting trial on sex trafficking charges, but investigations into his network of associates continue to generate political fallout on both sides of the Atlantic.

Labour has not yet issued a detailed statement beyond confirming it had received Lord Mandelson’s resignation.

 

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News

Policing powers stay with Westminster as devolution debate reignites in Wales

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THE UK GOVERNMENT has ruled out handing control of policing and criminal justice to Wales, triggering fresh political debate over whether the Senedd should ever take responsibility for law and order.

South Wales Central Conservative MS Andrew RT Davies said ministers were “right” to block further devolution, warning that separating Welsh forces from England would weaken efforts to tackle organised and cross-border crime.

His comments follow an exchange in the House of Commons, where Liz Saville-Roberts pressed the Home Secretary on transferring powers to Cardiff Bay. The Government confirmed it does not believe policing and criminal justice should be devolved.

“Must reflect the reality on the ground”

Mr Davies said proposals from Plaid Cymru and other devolution campaigners ignore how crime and communities operate in practice.

“The Senedd must not be put in charge of policing,” he said.

“Senedd ministers have an appalling track record on law and order. As senior police officers say, reforms must reflect the reality that many Welsh communities look east towards England far more than they do to other parts of Wales.”

Senior officers have echoed that concern.

Amanda Blackman, Chief Constable of North Wales Police, recently said her force area is “very much connected from a criminality perspective” to Merseyside and Cheshire.

“Our population move, if you like, is more east to west, west to east than it is north to south,” she said, pointing to the daily flow of commuters, shoppers and offenders across the border.

Long-running constitutional argument

Wales currently has four territorial forces – Dyfed-Powys, South Wales, Gwent and North Wales – but funding, legislation, prisons and the courts all remain under Westminster control.

Supporters of devolution argue this creates a “jagged” system, where services like health, housing and education are run by the Senedd but justice is not.

Plaid Cymru has repeatedly called for Wales to follow Scotland and Northern Ireland, both of which run their own justice systems.

They say decisions made in Cardiff could better reflect Welsh priorities, invest more in prevention, and link policing with mental health, youth services and social care.

A Plaid source said: “Communities in Wales should not have to rely on London to decide how their streets are policed. Justice should sit alongside the other services that deal with the causes of crime.”

Cost and complexity concerns

But critics warn that splitting away from England could come at a high price.

Establishing a separate legal and prison system would mean new administrative structures, courts oversight, inspection bodies and funding arrangements.

There are also practical questions around serious organised crime, counter-terrorism and specialist units that currently operate across England and Wales.

Former policing leaders have previously cautioned that criminals do not respect borders, and intelligence-sharing could become more complicated if systems diverge.

For rural areas such as Mid and West Wales, including Pembrokeshire, officers often work closely with English counterparts on drugs, county lines and cross-border burglary gangs.

Little appetite for change – for now

With the current Government making clear it has no plans to devolve the powers, the issue appears unlikely to change in the short term.

However, with constitutional reform regularly debated ahead of future elections, policing remains a live political question.

For now, responsibility for law and order stays firmly with Westminster – but the argument over who should control Wales’ justice system looks set to continue.

 

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