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Politics

Senedd unites to call for fairer funding

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SENEDD Members unanimously called for a fairer funding formula for Wales.

Rhun ap Iorwerth led a debate calling for the “outdated and unfair” Barnett formula to be scrapped, warning Wales gets a “poor deal”.

The population-based Barnett formula – which was devised as a temporary measure in the late 1970s by Labour’s Joel Barnett – is used by the Treasury in Westminster to set public spending in Wales, Scotland and Northern Ireland.

Mr ap Iorwerth told the Senedd: “The inadequacy of the Barnett formula has been apparent ever since its inception, which, of course, way predates the devolution era.”

The Plaid Cymru leader pointed out Wales faced a £72m shortfall from Westminster to cover the increased cost of national insurance in the public sector due to the “flawed” formula.

Mr ap Iorwerth argued Wales is owed around £5bn from rail projects across the border being classified as “England-and-Wales”, denying the Welsh Government consequential funding.

He criticised Darren Jones, chief secretary to the Treasury, for telling a Welsh MP he should be “more grateful” for rail cash,  which “typifies the contempt shown by the UK Government”.

The former broadcast journalist described the Welsh Government’s approach as trying to squeeze fairness from a fundamentally unfair system.

Sam Rowlands, for the Conservatives, called for a review of the fiscal framework – a 2016 agreement between the Welsh and UK Governments on funding and tax powers.

Conservative MS Sam Rowlands speaking in the Senedd
Conservative MS Sam Rowlands

He said: “In simple terms, the Welsh Government receives £1.20 from the UK Government for every £1 spent on public services in England.”

Mr Rowlands said Scotland has had two such reviews since 2015, increasing a cap on borrowing powers which now rises in line with inflation unlike in Wales.

He added: “Our friends in Northern Ireland have benefited from recent reviews too. Their most recent review, published in 2024, provides a Barnett needs assessment of a 24% increase against Wales’ 20%. So, it doesn’t seem right to me.”

Labour’s Mike Hedges said the Barnett formula evolved from the Goschen formula, which was used to allocate funds to Scotland and Ireland relative to England and Wales.

Labour MS Mike Hedges
Labour MS Mike Hedges

“The formula was thus never designed with Wales in mind,” he told the Senedd.

Rhys ab Owen, an independent, warned that the Barnett formula works on an annual basis, making it difficult to plan for the longer term.

Calling for a needs-based formula, he said: “Funding is linked to specific changes in public spending in England and is fundamentally responsive to English… rather than Welsh need.”

Pointing out that Scotland and Northern Ireland can borrow £3bn compared with £1bn in Wales, Mr ab Owen said: “County councils, in proportion to the population they represent, also have more borrowing powers than the Welsh Government.”

Responding to the debate on June 25, Mark Drakeford backed the motion which is “nothing more than a restatement of the long-standing policy of successive Welsh Governments”.

Finance secretary Mark Drakeford

He agreed with Lord Barnett who himself described the formula as grossly unfair in 2003.

Warning that the formula is often bypassed, Wales’ finance secretary told the Senedd: “Funding is not allocated fairly and systematically across the devolved countries.

“A good example is the Theresa May bung of £1bn to Northern Ireland following the 2017 election, purely driven by the need to prop up a minority Conservative UK Government.”

The former First Minister vowed to make the case for replacement of the Barnett formula at a meeting of finance ministers from the four nations in London the following day.

Business

Pembrokeshire businesses warn rates revaluation could force closures

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LOCAL businesses from across Pembrokeshire have warned that sharp increases in business rates could lead to redundancies and closures, following a public meeting held in Saundersfoot on Monday (Dec 15).

The meeting, held at the Hean Castle venue, brought together traders from retail, hospitality, professional services and the visitor economy to raise concerns about the impact of the latest business rates revaluation, which will take effect from April 2026.

Among those attending were Samuel Kurtz MS, Conservative Member of the Senedd for Carmarthen West and South Pembrokeshire, and Pembrokeshire County Councillor Jonathan Grimes, who represents Pembroke St Mary South and Monkton.

Businesses described sudden and significant increases in rateable values, with some reporting rises of more than 100%, despite no expansion in premises or improvement in trading conditions.

Evidence presented to the meeting highlighted concerns first identified by Pembrokeshire County Councillor Huw Murphy, who has been raising the issue locally and working with businesses, The Herald and S4C to bring the scale of the increases to public attention.

Cllr Murphy was unable to attend the Saundersfoot meeting, but details were provided on his behalf by Lee Bridges, drawing on information from businesses in the Newport & District Chamber of Trade area and Dinas Cross.

Figures relating to twenty local businesses showed that eighteen are facing increases in their rateable values, with one business hit by a 140% rise from April 2026. The average increase across the group was 36%, pushing the combined rateable value from £499,000 to £679,000 — an additional £180,000 burden due to take effect within four months.

One affected business has already warned that staff redundancies will be “unavoidable” if the increases go ahead.

Attendees criticised the Welsh Government’s transitional relief arrangements, describing them as inadequate and warning that they fall short of the support currently available to parts of the tourism and hospitality sector.

Tourism and hospitality account for an estimated 23% of Pembrokeshire’s economy, and those present warned that unchecked increases could have a serious impact on employment in coastal communities dependent on visitor trade.

The 2026 revaluation is based on rental values from April 2024 and has sparked concern across the county, with reports elsewhere in Pembrokeshire of increases of up to 400%.

Following the meeting, Mr Kurtz confirmed that he has written to the Cabinet Secretary for Finance and Welsh Language, Mark Drakeford MS, warning that current relief measures are insufficient and risk “pushing otherwise viable businesses over a cliff edge”.

He said businesses are already making decisions to close as a direct result of the projected increases and called for urgent action to protect jobs and local economies.

Businesses are being urged to check their new rateable values on the Valuation Office Agency website and to seek advice or contact their local representatives if they believe the figures are inaccurate or unsustainable.

Image caption:

Business rates meeting: Traders gather in Saundersfoot to raise concerns over impending increases, with Samuel Kurtz MS addressing attendees (Pic: Sam Kurtz MS)

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News

Kurtz warns six-month housing pause is costing jobs and worsening housing crisis

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SAMUEL KURTZ MS has renewed his warning that a moratorium linked to Natural Resources Wales (NRW) guidance has left housebuilding across large parts of Pembrokeshire “frozen” for almost six months, with growing consequences for employment, local businesses and the county’s already stretched housing supply.

Raising the issue in the Senedd last week, the Member of the Senedd for Carmarthen West and South Pembrokeshire challenged Ministers over the continued paralysis affecting new developments connected to NRW’s interpretation of rules surrounding the marine Special Area of Conservation off the Pembrokeshire coast. Despite efforts by local planning authorities to work within the requirements, development has stalled across wide areas of the county.

Mr Kurtz stressed that responsibility for the impasse sits with NRW and the Welsh Government, not with local councils, which he said are “doing everything reasonably possible” in exceptionally constrained circumstances. In the absence of clear, workable national guidance, planning departments cannot approve applications or provide certainty to developers.

The knock-on effects, he warned, are now being felt across the local economy. Housebuilders are laying off staff, and architects, surveyors and other construction-related firms are seeing projects scrapped or delayed indefinitely. These are “real and immediate” job losses in a county already facing an acute shortage of homes, he said—undermining the Welsh Government’s stated aim to increase housing supply and support economic growth.

Mr Kurtz has called for urgent engagement between Ministers, NRW and councils to find a proportionate solution that protects the marine environment without damaging livelihoods or halting much-needed housing delivery. He has also pressed the Cabinet Secretary for Housing to set out what support, if any, is being offered to affected workers and businesses, and when certainty is likely to return to the sector.

Commenting, Samuel Kurtz MS said:
“Everyone accepts the need to protect our natural environment, but this blanket, unresolved approach from NRW—made worse by inaction from the Welsh Government—has left housebuilding in Pembrokeshire frozen for nearly six months.

“Planning authorities are being placed in an impossible position. Builders and architects are already laying off staff because they simply cannot operate under the current guidance.

“These job losses are a genuine and growing cause for concern. At a time of severe housing shortage, the Welsh Government must take responsibility, get a grip on the situation and deliver a solution that protects the environment while safeguarding jobs, homes and local communities.”

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News

1950s women’s group questions ‘new evidence’ claims and £180k DWP payment

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Welsh campaigners demand clarity from ministers as WASPI legal costs deal faces scrutiny

CAMPAIGNERS representing women born in the 1950s have written to the UK Government demanding urgent clarification over what ministers are calling “new evidence” on state pension age changes – and why the Department for Work and Pensions (DWP) agreed to pay £180,000 towards legal costs when a High Court cap had been set at £90,000.

In a strongly worded email sent on Monday (Dec 15), Jackie Gilderdale and Kay Clarke, writing on behalf of 1950s Women of Wales, 50s Women United and Pension Partners for Justice, asked Pensions Minister Torsten Bell and Work and Pensions Secretary Pat McFadden to explain the Government’s position ahead of a planned meeting with MPs in January.

They warn that, if ministers do not provide a “full and substantive” response, they will file Freedom of Information requests and escalate the issue to the National Audit Office (NAO) and the House of Commons Public Accounts Committee.

FIRST, THE ‘NEW EVIDENCE’

The Welsh-based group say they are “seeking urgent clarity” about repeated references in Westminster to “new evidence” relating to the way changes to women’s state pension age were communicated.

They argue that key material being talked about publicly is not new at all, but was uncovered years ago during the early stages of the Women Against State Pension Inequality (WASPI) campaign.

In their letter, Jackie and Kay say the omission of state pension age rises for women from automatic pension forecasts “as early as 2003” was documented by the original WASPI co-founders, widely used in campaigning work and held by law firm Bindmans “for almost a decade”.

“It CANNOT credibly be described as new,” they write.

The email asks the ministers to spell out:

  1. What evidence is being described as “new”;
  2. When that evidence first came into the possession of Government, MPs and legal representatives; and
  3. Why “long established, documented evidence is now being presented in this manner”.

They also point to the fact that some material was once published on the WASPI website but later removed by the current WASPI leadership, led by Angela Madden, saying the reason “has never been explained”.

COSTS CAP AND £180,000 PAYMENT

The second major concern raised in the correspondence is the size of the DWP’s contribution to WASPI’s legal costs after the recent judicial review was halted.

The campaigners highlight that a costs capping order in the High Court proceedings limited the department’s liability to £90,000, yet the DWP has since confirmed it will pay £180,000 towards WASPI’s costs.

“This raises significant concerns regarding value for money, propriety and regularity, which fall within the scrutiny remit of the National Audit Office and the Public Accounts Committee,” the letter states.

“It is unclear on what basis this excess payment was authorised, who approved it, or how it complied with principles of public financial management and ministerial accountability.”

Jackie and Kay say that unless ministers set out a clear justification for the payment, they will “proceed with a formal Freedom of Information request and refer the matter to the National Audit Office and the Public Accounts Committee for full investigation”.

They also argue that, in a climate of tight public finances, any decision to go beyond a court-imposed cap should be fully explained to Parliament and the public.

CALL FOR INCLUSIVE MEDIATION

Underpinning the exchange is a long-running demand by 1950s Women of Wales and allied groups for formal mediation between the Government and all major campaign organisations representing women affected by pension age changes.

They point to recent changes to the Civil Procedure Rules and to case law encouraging courts and public bodies to make greater use of Alternative Dispute Resolution (ADR), including mediation.

“As Pensions Minister, Mr Bell has a duty to engage constructively in mediation with leaders of all 1950s women groups,” they write, adding that these groups “possess further evidence requiring scrutiny”.

“To decline or ignore such engagement would risk breaching ministerial duties; fail to meet legal expectations and be manifestly unjust to the women impacted.”

The letter asks for written confirmation that the Minister will now engage in mediation “in line with the Civil Procedure Rules and 2024 ADR requirements”.

SECRECY ROW OVER DECEMBER HEARING

The latest intervention also revisits controversy around the handling of a court hearing on 3 December, linked to the WASPI judicial review.

In earlier emails copied into the thread, Jackie and Kay describe the arrangements for public access to that hearing as an “extraordinary scandal”, claiming the DWP and WASPI agreed to conditions which “effectively repudiated the principle of open justice” by limiting or charging for access.

They say it took an intervention by a High Court judge shortly before the hearing to restore open access, after which both parties withdrew their applications and the case did not proceed.

The campaigners argue that this sequence “raises profound questions” and are calling for greater transparency about why the case collapsed and what, if anything, was being “concealed”.

Those comments are allegations by the campaign group; there is no suggestion that any party has accepted that characterisation of events.

WASPI GOVERNANCE QUESTIONS

Alongside criticism of Government, the Welsh group is also calling for scrutiny of WASPI’s own governance.

In previous correspondence, they raised concerns about:

  • apparent discrepancies between public statements about resignations and the directors still listed on Companies House;
  • the group’s internal accountability; and
  • whether WASPI’s leadership structure reflects those it claims to represent.

They argue that, by WASPI’s own figures, the organisation represents a relatively small proportion of the estimated 3.8 million women affected by state pension age changes, and say ministers should not treat it as the sole voice of the cohort.

“Government cannot be expected to engage with a company whose own governance raises such substantial questions,” one email says, while stressing that all groups – including WASPI – should be involved in any settlement process.

“WOMEN DESERVE HONESTY”

The latest message concludes by saying that women born in the 1950s “deserve honesty, transparency and accountability”.

“Anything less further undermines trust in the political process and perpetuates an injustice that has already endured for far too long, and cost a vast number of lives,” Jackie and Kay write.

They tell the ministers that, if their questions are ignored, they will ensure the full group of All-Party Parliamentary Group members, cross-party MPs and the wider public “are fully informed”.

The Herald has approached Torsten Bell MP, Pat McFadden MP, WASPI and Bindmans for comment.

In an emailed response to The Herald’s questions on Monday, a DWP spokesperson said: “Last month we committed to retake the decision and as set out, we will do so within 3 months.

“This should not be taken as an indication that Government will necessarily decide that it should award financial compensation.”

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