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.

Crime

Food business operator fined for displaying incorrect hygiene rating

Published

2 minutes ago

December 14, 2025

Court Reporter

A 36-YEAR-OLD food business operator has been fined after admitting displaying an incorrect food hygiene rating sticker at a pub in Pembroke Dock.

Joshua Jake Peniket, of The Boar’s Head, Templeton, Narberth, appeared on the court register at Haverfordwest Magistrates’ Court on Thursday (Dec 11), although he was not present for the hearing.

The court heard that on May 8, 2025, Peniket was the operator of a food business establishment, The Ferry Inn, Pembroke Ferry, Pembroke Dock. On that date, he displayed a food hygiene rating sticker which was invalid because the rating shown was incorrect.

The offence was brought by Pembrokeshire County Council and related to a breach of the Food Hygiene (Rating) Wales Act 2013, which requires food businesses to display accurate and valid hygiene ratings.

Peniket pleaded guilty to the offence, and the court took his guilty plea into account when imposing sentence.

He was fined £200, ordered to pay a £80 surcharge to fund victim services, and £100 in prosecution costs. A collection order was made, with the total balance of £380 to be paid by January 9, 2026.

Farming

Basic Payment Scheme 2025 balance paid to 95% of Welsh farmers

Published

9 hours ago

December 14, 2025

Tom Sinclair

Final year of BPS as transition to Sustainable Farming Scheme begins

The WELSH Government says more than ninety-five per cent of farm businesses have now received their full or balance payment under the final year of the Basic Payment Scheme (BPS), ahead of the introduction of the new Sustainable Farming Scheme (SFS) in 2026.

Announcing the update on Friday (Dec 12), Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs, Huw Irranca-Davies, confirmed that over 15,400 Welsh farm businesses have been paid £68.7m. This comes on top of the £160m issued in BPS advance payments since 14 October.

Final round of BPS payments

The Basic Payment Scheme, which has been the backbone of farm support in Wales for a decade, provides direct income support to help farmers plan and manage their businesses. BPS 2025 marks the last year in which full BPS payments will be made before the scheme begins to be phased out.

The Cabinet Secretary said officials would “continue to process the outstanding BPS 2025 claims as soon as possible,” adding that all but the most complex cases should be completed by 30 June 2026.

Payments issued today represent the main balance due to farmers following earlier advances, giving many businesses the cash flow they need during the quieter winter period—traditionally a challenging time in the agricultural calendar.

Shift to Sustainable Farming Scheme in 2026

From 1 January 2026, the Welsh Government will begin rolling out the Sustainable Farming Scheme, a major reform to how agricultural support is delivered. The SFS will reward farmers for environmental outcomes such as habitat management, carbon reduction and biodiversity improvements, alongside continued food production.

The government has argued that the new scheme is essential to meeting Wales’ climate and nature targets while ensuring long-term resilience in the sector. However, the transition has been closely watched by farming unions, who have raised concerns about the administrative burden, income stability, and the speed at which BPS is being phased out.

Mr Irranca-Davies reaffirmed the government’s stance, saying: “This government is steadfastly committed to supporting Welsh farmers to sustainably produce quality food. This is demonstrated today in our payment of the BPS 2025 balance payments and will continue throughout the transition period.”

Sector reaction

Farming unions are expected to scrutinise the detail of today’s announcement, particularly around remaining unpaid cases. Last year, late payments led to frustration in parts of the sector, with unions calling for greater certainty as the industry faces rising input costs, supply chain pressures and continued market volatility.

The move to the SFS remains one of the most significant agricultural policy changes in Wales since devolution. Ministers insist the shift is designed to support both food production and environmental stewardship, while critics warn the transition must not undermine farm viability—especially for family-run livestock farms that dominate rural areas such as Pembrokeshire, Ceredigion and Carmarthenshire.

What happens next

Farmers still awaiting their BPS 2025 balance will continue to be processed “as soon as possible”, the Welsh Government said. Officials will also publish updated guidance on the Sustainable Farming Scheme ahead of its launch.

The coming year will therefore become a pivotal moment for Welsh agriculture, as the long-standing BPS framework—which provided over £200m annually to Welsh farmers—makes way for a new results-based model that will shape the industry for decades to come.

News

Improved train timetable launches across Wales

Published

9 hours ago

December 14, 2025

Tom Sinclair

Extra services, later trains and boosted Sunday routes as £800m rail investment takes effect

An improved train timetable has come into force across Wales today (Sunday, 14 December), with Transport for Wales (TfW) introducing more frequent services, stronger connections and additional late-night trains on key routes.

The winter timetable update brings one of the most substantial uplifts in recent years on the Wales and Borders network, forming part of the Welsh Government’s ongoing £800 million investment in brand-new rolling stock and reliability improvements.

More trains and later journeys

Among the upgrades, passengers will see:

A new hourly additional service between Chester and Wrexham, effectively doubling the frequency on one of the region’s busiest commuter corridors.
An extra train in each direction every day on the Heart of Wales line between Swansea and Shrewsbury.
Three later last trains from Cardiff to Treherbert, Aberdare and Merthyr Tydfil, supporting shift workers and the night-time economy.
A new hourly Sunday service on the Coryton line in Cardiff.

Cabinet Secretary for Transport and North Wales, Ken Skates, said improved connectivity was “absolutely vital” for economic growth and passenger confidence.

“These changes will make a real difference to customers, who will benefit from more services and greater connectivity,” he said. “This has been made possible by our £800m investment in brand-new trains for the Wales and Borders network.

“We will see the doubling of trains between Wrexham and Chester and a later service from the capital to valley communities. In South Wales, people will continue to benefit from simpler, fairer fares through TfW’s Pay As You Go service, and its forthcoming introduction in North Wales will help even more passengers access easy, transparent pricing.”

Full details of the updated timetable are available at: tfw.wales/service-status/timetables