News

National Insurance rise creates black hole in council budget

Published

6 months ago

June 12, 2025

THE PEMBROKESHIRE HERALD has confirmed that Pembrokeshire County Council faces significant budget pressure due to Labour’s hike in employers’ National Insurance contributions (NICs).

The pressures stem not only from the local authority’s obligation to pay increased NICs for its own staff, but also from the added costs passed on by external service providers — particularly in social care — who are also affected by the rise.

SETTING A BUDGET BLIND

When former Cabinet Member for Finance Josh Beynon presented this year’s budget, he flagged the potential risks the NIC increase posed to the Council’s finances in both the current and following financial years. However, at the time, due to the UK Government’s delay in confirming its funding plans, he did not know whether the full NIC increase would be covered.

The Welsh Government has claimed it lobbied Westminster to ensure the full increase would be funded, avoiding in-year pressures on already stretched council budgets.

Instead, a combination of Westminster funding and Welsh Government reserves will cover around 85% of the increase. Whether that support remains in place beyond the current financial year is unclear. Once the first two years of the current spending review period end in April 2027, further funding looks unlikely.

NI RISE WILL HIT COUNCIL SERVICES

Even absorbing a fraction of the cost will have a significant impact on Pembrokeshire’s budget.

We asked the County Council to outline the scale of the impact.

Cllr Alistair Cameron, Cabinet Member for Finance and Efficiency, said: “We have been advised that the UK and Welsh Governments will meet circa 85% of the cost of raising the employer’s National Insurance contribution rate. This leaves Pembrokeshire County Council with an in-year pressure of approximately £0.75m. This will also be a pressure for the 2026–27 budget.

“The Council delivers many of its statutory functions through external organisations (such as social care providers). I understand they are not receiving any compensation for this added expense. This will, therefore, add an estimated £2m to their cost base. I fear they will be looking to the Council to meet the additional costs.

“Pembrokeshire County Council is already working hard to plan for next year’s budget, and we will have to take account of this shortfall, along with other pressures, including UK and Welsh Government funding settlements and rising demand for statutory services such as social care.

“We have made significant cost savings over several years and are trying to run our services as efficiently as possible while responding to public need.

“We will be consulting with the Pembrokeshire public on different budget options, but it will not be easy.

“The final decision on next year’s budget rests with Full Council. We aim to discuss all options with the political groups and non-aligned councillors to try to reach an agreement that best serves the people of Pembrokeshire.”

SOCIAL CARE IN CRISIS

The increase in NIC has already led to warnings that the social care sector in Wales faces a £150 million funding gap.

An increase in employer NICs from 13.8% to 15%, alongside a reduction in the earnings threshold from £9,100 to £5,000, is expected to hit the sector hard.

These changes equate to a 37% rise in NICs for an employee earning £25,000 — equivalent to the Real Living Wage.

Combined with the increase in both the National Minimum Wage and National Living Wage, these changes are set to add tens — or even hundreds — of thousands of pounds in additional annual staffing costs for care homes.

In Pembrokeshire, one major care provider has already reorganised its staff structure and reduced the number of full-time equivalent posts. Smaller providers are also being forced to cut back on where and how often staff work in a bid to control costs.

The Nuffield Trust, an independent think tank, has warned that the Chancellor’s policy decisions could see “swathes of the social care market [collapse] under these extra cost pressures.”

If social care provision fails to keep pace with demand, the resulting pressure on the NHS will inevitably grow. In Pembrokeshire — with one of the oldest populations in Wales — that could prove disastrous.

To maintain care levels and ensure service users’ dignity, Pembrokeshire County Council would be left with two stark choices: cut other services, raise council tax, or most likely, both.

Whether Rachel Reeves has considered that consequence is unclear — particularly in light of the continuing prioritisation of the NHS, which is exempt from the NIC rise, and the lack of investment in the wider system that props it up.

Business

First wind turbine components arrive as LNG project moves ahead

Published

2 hours ago

December 4, 2025

Tom Sinclair

THE FIRST ship carrying major components for Dragon LNG’s new onshore wind turbines docked at Pembroke Port yesterday afternoon, marking the start of physical deliveries for the multi-million-pound renewable energy project.

The Maltese-registered general cargo vessel Peak Bergen berthed at Pembroke Dock shortly after 4pm on Wednesday, bringing tower sections and other heavy components for the three Enercon turbines that will eventually stand on land adjacent to the existing gas terminal at Waterston.

A second vessel, the Irish-flagged Wilson Flex IV, is due to arrive in the early hours of this morning (Thursday) carrying the giant rotor blades.

The deliveries follow a successful trial convoy on 25 November, when police-escorted low-loader trailers carried dummy loads along the planned route from the port through Pembroke, past Waterloo roundabout and up the A477 to the Dragon LNG site.

Dragon LNG’s Community and Social Performance Officer, Lynette Round, confirmed the latest movements in emails to the Herald.

“The Peak Bergen arrived yesterday with the first components,” she said. “We are expecting another delivery tomorrow (Thursday) onboard the Wilson Flex IV. This will be blades and is currently showing an ETA of approximately 03:30.”

The £14.3 million project, approved by Welsh Ministers last year, will see three turbines with a combined capacity of up to 13.5 MW erected on company-owned land next to the LNG terminal. Once operational – expected in late 2026 – they will generate enough electricity to power the entire site, significantly reducing its carbon footprint.

Port of Milford Haven shipping movements showed the Peak Bergen approaching the Haven throughout Wednesday morning before finally tying up at the cargo berth in Pembroke Dock. Cranes began unloading operations yesterday evening.

Weather conditions are currently favourable for this morning’s arrival of the Wilson Flex IV, which was tracking south of the Smalls at midnight.

The abnormal-load convoys carrying the components from the port to Waterston are expected to begin next week, subject to final police and highway approvals.

A community benefit fund linked to the project will provide training opportunities and energy-bill support for residents in nearby Waterston, Llanstadwell and Neyland.

Further updates will be issued by Dragon LNG as the Port of Milford Haven as the delivery programme continues.

Photo: Martin Cavaney

Crime

Banned for 40 months after driving with cocaine breakdown product in blood

Published

2 hours ago

December 4, 2025

Sarah-Jane Absalom

A MILFORD HAVEN woman has been handed a lengthy driving ban after admitting driving with a controlled drug in her system more than ten times over the legal limit.

SENTENCED AT HAVERFORDWEST

Sally Allen, 43, of Wentworth Close, Hubberston, appeared before Haverfordwest Magistrates’ Court on Thursday (Dec 4) for sentencing, having pleaded guilty on November 25 to driving with a proportion of a specified controlled drug above the prescribed limit.

The court heard that Allen was stopped on August 25 on the Old Hakin Road at Tiers Cross while driving an Audi A3. Blood analysis showed 509µg/l of Benzoylecgonine, a breakdown product of cocaine. The legal limit is 50µg/l.

COMMUNITY ORDER AND REHABILITATION

Magistrates imposed a 40-month driving ban, backdated to her interim disqualification which began on November 25.

Allen was also handed a 12-month community order, requiring her to complete 10 days of rehabilitation activities as directed by the Probation Service.

She was fined £120, ordered to pay £85 prosecution costs and a £114 surcharge. Her financial penalties will be paid in £25 monthly instalments from January 1, 2026.

The bench—Mrs H Roberts, Mr M Shankland and Mrs J Morris—said her guilty plea had been taken into account when passing sentence.

Local Government

Sewage leak at Pembroke Commons prompts urgent clean-up works

Published

3 hours ago

December 4, 2025

Tom Sinclair

Council pollution officers say they have no enforcement powers over Welsh Water infrastructure

SEWAGE contamination on the Commons in Pembroke has prompted an urgent response from pollution officers, after a leak was reported by a member of the public on Tuesday.

Pembrokeshire County Council’s Pollution Control Team confirmed they were alerted yesterday afternoon to sewage surrounding a manhole cover on the site. The Herald understands that officers immediately notified Welsh Water (DCWW) network technicians to investigate the incident “as a matter of urgency”.

County councillor Jonathan Grimes, who represents Pembroke St Mary South and Monkton, said the authority had been clear that it holds no enforcement powers over Welsh Water assets.

“Whilst we work constructively with Welsh Water, we have no authority to intervene on their apparatus or to carry out enforcement action against them for such pollution incidents,” the Pollution Control Team said in a statement shared with the councillor.

Urgent works underway

Council officers visited the site on Wednesday morning alongside contractors and Welsh Water technicians to assess clean-up options. According to the team, works will include cleaning the contaminated ground in and around the manhole cover and fencing off the affected area “until safe”.

Cllr Grimes said officers would return to the scene on Thursday to check on progress and ensure the area is properly secured.

Residents who notice any further issues have been urged to contact the Pollution Control Team directly.

Further updates are expected later this week.